Babylon’s staking protocol, designed to support multiple chains, is making waves with its ambitious plans to implement restaking on Bitcoin.
While restaking on Ethereum has been explored by teams like @eigenlayer and @symbioticfi, Bitcoin’s lack of smart contracts poses significant challenges. However, the substantial market presence of Bitcoin, which comprises over 50% of the industry’s market cap, makes this endeavor worthwhile.
If BTC restaking becomes viable, it could significantly reduce the bootstrapping costs for AVSs or restaking consumers. Additionally, it would provide more auditable, on-chain yield-generating options for Bitcoin, a first at scale. Babylon’s innovative use of Extractable One Time Signatures (EOTS) for slashing and the repurposing of their timestamping protocol for fast unbonding further highlight their technical ingenuity.
Last Friday, Babylon and @SolvProtocol jointly opened an early pledge quota of 500 $BTC, which sold out in just two minutes. Two whales accounted for 299 BTC, with the largest pledging 196.038 BTC (worth $12.57 million) and the other 103.016 BTC (worth $6.58 million). This is the third round of Babylon staking facilitated by Solv, with each round selling out faster than the last—from 14 hours to 31 minutes to just 2 minutes.
1,500 BTC With Over 16,000 Addresses In TVL
Solv Protocol, a decentralized Bitcoin reserve network backed by Binance Labs, enables users to participate in the BTCFi ecosystem across multiple chains, including BNB Chain, Arbitrum, Merlin Chain, Ethereum, and Mantle. Since establishing a partnership with Babylon in July, Solv has been distributing Babylon node shares to SolvBTC.BBN users proportionally.
Currently, SolvBTC.BBN boasts a TVL of 1,500 BTC with over 16,000 addresses, leading among the 8 Babylon LST products. The platform’s total TVL exceeds 19,000 BTC, surpassing even prominent public chains like Arbitrum and Polygon, demonstrating impressive performance and strong user engagement.
Babylon’s innovative approach to Bitcoin restaking and its rapid adoption signal a significant shift in the decentralized finance landscape, promising new opportunities and growth for BTC holders.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.