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Babylon leads BTC staking innovation with multiple liquidity projects emerging.
Babylon, as a decentralized Bitcoin staking solution, realizes the staking of Bitcoin native assets through cryptography. It allows users to stake BTC without leaving the mainnet, while providing PoS security for other blockchains and generating yields. This innovative mechanism has received widespread recognition in the BTC community.
The emergence of Babylon has opened up new revenue channels for Bitcoin holders, while also addressing issues such as inflation and startup difficulties faced by some small and medium-sized PoS chains. It is fundamentally changing the way the BTC ecosystem operates.
Based on Babylon, multiple projects have launched BTC liquidity staking solutions, similar to ETH liquidity tokens. These solutions allow users to deposit and withdraw BTC at any time while earning interest, and also utilize liquidity staking tokens to participate in other DeFi projects.
The main BTC liquidity staking projects currently include:
pSTAKE adopts an institutional custody model and plans to issue yBTC liquidity tokens. It is currently in the v1 testing phase, with over 40,000 users participating.
Lorenzo has implemented a principal and interest separation business similar to Pendle, issuing three tokens: stBTC, YAT, and SPT. Pre-launch staking has been initiated.
Lombard adopts a decentralized architecture, allowing users' funds to be directly staked to Babylon. It is currently in the Private Beta stage, issuing LBTC liquidity tokens.
Solv integrates yields from BTC Layer 2 and ETH Layer 2, issuing the solvBTC.BBN token. It has attracted over 12,000 BTC staked.
Bedrock was commissioned by Babylon to develop the UniBTC protocol, allowing Ethereum users to stake their wBTC to Babylon.
Master Protocol is a yield aggregation platform that packages Bitcoin ecosystem assets into MSY and then splits them into MPT and MYT for trading.
Chakra is a ZK-driven modular Bitcoin settlement layer that issues tlBTC as a staking certificate.
These projects are bringing more liquidity and profit opportunities to the BTC ecosystem, which is expected to significantly improve the overall yield of BTC. Unlike ETH staking, the BTC staking sector has not yet seen a monopoly by giants, providing development space for early projects.