BTC teams up with SatLayer and Sui on the stake platform! Unlocking Babylon's 5.8 billion BTC Liquidity, advancing the development of BTCFi

Based on the L1 BTCstakeprotocol Babylon's re-stake platform SatLayer, it announced its collaboration with the popular public chain Sui on 12/19 to unlock BTCLiquidity, promoting the next stage of BTCFi development. Please provide the text to be translated. Provide a shared security mechanism for Bitcoin, 5.8 billion dollars Liquidity assist Sui ecology development

SatLayer, the stake platform, provides a programmable shared security mechanism for BTC, allowing developers to customize the usage of BTC in applications, such as designing a slashing mechanism for malicious behavior.

SatLayer has previously collaborated with Babylon Labs and positioned SatLayer as a tool to enhance Babylon's security, which is not limited to the operation of Proof of Stake (POS) chains, but also ensures the security and stability of infrastructure and cross-chain bridges, and other DApps. Babylon's design is similar to a two-way market, where users can stake BTC for rewards, while the POS chain uses these BTC to provide blockchain validation services.

Stake BTC to Satlayer for security diagram

SatLayer also carries nearly 5.8 billion US dollars in lock-up volume, providing stable Liquidity and security for various decentralized applications (dApps) developed on SUI, such as DeFi protocol, lending platforms, and decentralized exchanges (DEX).

The image shows DefiLlama's Babylon $5.8 billion locked amount

(SUI will support BTC stake, and collaborate with Babylon and Lombord to launch LBTC in December)

Introducing Lombard and Lorenzo's LST, Sui has unlimited potential

The previous collaboration between Babylon Labs and Lombard Protocol was aimed at allowing users to stake BTC on Babylon, then generate Liquiditystake token LBTC through Lombard, and finally use LBTC for applications such as lending and trading on Sui.

One of the purposes of the collaboration between SatLayer and Sui is to move Lombard's LBTC and stakeprotocol Lorenzo's stBTC to Sui as collateral. The Sui Foundation believes that this collaboration can use BTC to strengthen its own ecosystem and accelerate application development.

Most SUI projects start utilizing Bitcoin Liquidity

Several representative projects of SUI have started to utilize BTCLiquidity, such as Navi Protocol, a cross-chain DeFi protocol, Suilend Protocol, a lending platform, Aftermath, a decentralized exchange, Ikadot, a cross-chain protocol based on the Polkadot ecosystem, and Cetus Protocol, a decentralized exchange.

Through Sui's high scalability and SatLayer's re-stakeBTC mechanism, these projects can provide innovative solutions in a faster and more secure manner, promoting the diversified development of BTCFi.

(After nearly a month since the launch of the Babylon mainnet, the market response has been less than expected: Where is the future of BTCFi?)

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