Sui, a new Layer 1 Blockchain, will launch Bitcoin Staking in December. This is a major step towards integrating Bitcoin with decentralized finance.
The new initiative was developed by Babylon Labs in conjunction with Lombard Protocol. It will enable Bitcoin owners to stake their BTCs on Babylon, a Bitcoin Layer-2 network and mint LBTCs, Lombard’s liquid staking (LST) tokens.
Bitcoin stake gives BTC useability in DeFi space
Bitcoin’s $1.8 trillion in market capitalization is underutilized by the DeFi industry due to its limited programability.
Sui wants to make this a thing of the past by offering a platform that allows Bitcoin owners to unlock their full potential without having any compromises made on either security or liquidity.
Users can receive LBTC Tokens from Lombard Protocol by staking BTC through Babylon’s Protocol. These tokens are then usable within Sui DeFi’s ecosystem to lend, borrow, or trade.
LBTC is already a huge success on Ethereum and will soon become a key asset for Sui’s DeFi eco-system.
Lombard Protocol’s LBTC token, which has surpassed $1 Billion in assets minted, has been actively used in DeFi apps. Over half of this asset has participated in DeFi.
Sui is a decentralized blockchain that has a reputation for high performance.
Integrating Bitcoin into Sui
Cubist is a developer of blockchains and they are responsible for creating the infrastructure to support Bitcoin integration in Sui.
This infrastructure provides a secure, efficient and safe management of depositing, mining, stakes, and connecting BTC to Sui. It will also ensure the highest level of performance and security for all users.
Jacob Phillips (co-founder of Lombard) highlighted the enormous untapped potential in Bitcoin’s capitalization. He stressed that the collaboration is aimed at creating a future for Bitcoin holders to fully participate the next-generation of on-chain financial.
Phillips said that this partnership will allow users of all blockchain ecosystems to interact with Sui’s DeFi ecosystem.
Jameel Khalfan is the Head of Ecosystem Development for Sui Foundation. He noted that Bitcoin integration with Sui was a great match thanks to blockchain’s composability and programmability.
The collaboration between Sui and Bitcoin will allow users to access innovative financial services, while still maintaining their Bitcoin’s security and liquidity.
Sui DeFi’s ecosystem has already embraced the power of Bitcoin. Projects such as NAVI – a lending and borrowing protocol – plan to support LBTC pool.
Elliscope Feang, the CEO of NAVI expressed his excitement over this collaboration. He described it as an exciting development both for Sui and Bitcoin.
The post Sui introduces Bitcoin staking in December could be updated as new information becomes available.
