Build on Bitcoin (BOB), a hybrid Layer 2 (L2) blockchain combining the strengths of Bitcoin and Ethereum, has partnered with Babylon, a Bitcoin (BTC) staking protocol, to achieve Bitcoin-Secured Network (BSN) status.
Strengthening BOB’s Bitcoin DeFi Ecosystem Through Babylon
According to an announcement from BOB shared with Bitcoin.com News, this collaboration marks a major milestone in BOB’s journey, significantly enhancing its decentralized finance (DeFi) offerings. The integration enables BOB to adopt Bitcoin finality, a critical feature that boosts transaction security and reliability.
Babylon’s innovative technology allows users to stake Bitcoin directly on the Bitcoin blockchain without relying on bridging or wrapping mechanisms. By leveraging Bitcoin’s robust security, the protocol facilitates reward generation for staking participants. This integration aligns with BOB’s Phase 2 roadmap, which is scheduled for release in early 2025.
Unlocking Liquidity with BTC Liquid Staking Tokens
BOB plans to utilize this partnership to drive adoption of BTC Liquid Staking Tokens (LSTs), thereby unlocking additional liquidity within the DeFi space. Currently, BOB’s ecosystem boasts a $200 million DeFi market, featuring Babylon-backed LSTs such as Solv, Bedrock, and PumpBTC. The platform’s BOB Stake feature streamlines access to staking products, enabling users to stake Bitcoin in a single transaction.
A standout addition to BOB’s ecosystem is Lombard’s LBTC, the largest BTC LST with a total value locked (TVL) of $1.5 billion. BOB is now the fourth platform to host LBTC, joining Ethereum, Base, and BSC. This development is anticipated to attract further Bitcoin liquidity into BOB’s ecosystem, cementing its role as a leading hub for Bitcoin-centric DeFi solutions.
Incentivizing Adoption with Enhanced Staking Rewards
For the next 45 days, BOB users will benefit from increased Babylon staking rewards, encouraging the adoption of the platform’s LST offerings. This limited-time incentive coincides with Babylon’s recent expansions of staking caps and a broader surge in interest surrounding BTC L2 solutions and sidechains.
BOB’s Position in the L2 and Sidechain Market
With a total value locked (TVL) of $200 million, BOB ranks as the sixth-largest Bitcoin L2 or sidechain, according to DefiLlama.com. CORE leads the market with $868.19 million, followed by Bitlayer ($505.82 million), Bsquared ($334.9 million), Rootstock ($229.5 million), and AIlayer ($211.11 million). Babylon, by comparison, holds a commanding TVL of $5.553 billion.
This partnership with Babylon signals a significant step forward for BOB, as it continues to expand its ecosystem and solidify its position in the Bitcoin DeFi space.
