BOB (Build on Bitcoin), a hybrid layer two (L2) community, has superior its mission to place Bitcoin on the heart of decentralized finance (DeFi) by integrating with Babylon, a Bitcoin staking protocol.
This collaboration permits BOB to safe transactions utilizing Bitcoin as its anchor chain, offering a stage of finality and irreversibility distinctive to the Bitcoin community.
Integration Brings Bitcoin Finality to BOB
The integration with Babylon equips Build on Bitcoin (BOB) with “Bitcoin finality,” making certain that transactions recorded on its platform are completely and irreversibly secured on Bitcoin’s blockchain. This mechanism, consequently, strengthens the safety and trustworthiness of BOB’s hybrid layer two community, distinguishing it from different Bitcoin-based L2 options that lack Bitcoin-native safety.
Babylon, acknowledged because the main Bitcoin staking protocol, manages a complete worth locked (TVL) of roughly $6 billion. The protocol, consequently, permits Bitcoin holders to stake their BTC, contributing to the safety of decentralized purposes and incomes rewards in return.
Introducing BOB as a Bitcoin Secured Network (BSN).
Through our integration with @babylonlabs_io, we’re bringing Bitcoin finality to the Hybrid L2 and making @build_on_bob the most effective place to make use of BTC Liquid Staking Tokens (LSTs).https://t.co/K6baJZ2TAs pic.twitter.com/YmQLiaa9r9
— BOB (@build_on_bob) December 18, 2024
Through Babylon’s protocol, BOB can use Liquid Staking Tokens (LSTs) to launch Bitcoin liquidity into DeFi purposes whereas retaining Bitcoin’s strong safety.
Hybrid L2 Model Combines Bitcoin and Ethereum Features
Build on Bitcoin hybrid layer two mannequin blends Bitcoin’s safety with Ethereum’s sensible contract capabilities. The community goals to create bridges to different blockchains whereas utilizing Bitcoin as the ultimate settlement layer.
With over $200 million in TVL, 320,000 customers, and 100 tasks, BOB has positioned itself as a distinguished participant within the Bitcoin DeFi ecosystem.
The integration can also be a part of BOB’s bigger roadmap. As a part of Phase 2, BOB will launch bridges that join Bitcoin to different networks utilizing BitVM, a brand new computing framework enabling Ethereum-like smart contracts on Bitcoin. The testnet launch for BitVM is scheduled for early 2025, signaling BOB’s dedication to increasing Bitcoin’s DeFi potential.
Lombard’s LBTC Joins the BOB Ecosystem
To additional improve its ecosystem, BOB has introduced the combination of LBTC, the biggest Bitcoin LST, managed by Lombard Finance. LBTC, with a TVL of $1.6 billion, turns into the fourth LST deployment on BOB, following Ethereum, Base, and Binance Smart Chain. Approximately 80% of LBTC’s TVL is already actively deployed in DeFi purposes, reflecting its significance within the staking panorama.
This addition bolsters Build on Bitcoin’s efforts to broaden Bitcoin staking liquidity and amplify DeFi exercise on its platform. Through partnerships with staking suppliers, wallets, and aggregators, BOB has simplified the method of staking Bitcoin with a one-click answer.
Subsequently, to have a good time its integration with Babylon, Build on Bitcoin has launched a 45-day marketing campaign geared toward incentivizing Bitcoin staking and DeFi exercise. Over this era, a further 4.5 million Babylon Points can be distributed each day to eligible customers.
In addition, the marketing campaign contains extra incentives from BOB’s LST companions, equivalent to Bedrock and PumpBTC, to encourage wider adoption. Users will have the ability to simply convert native Bitcoin into staking positions on Build on Bitcoin by way of the “BOB Stake” portal, which helps a seamless transition into DeFi purposes.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a powerful command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
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