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    Babylon Labs and Lombard Protocol Team Up to Boost Bitcoin Liquidity on Sui Blockchain with LBTC Staking Token

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    Babylon Labs and Lombard Protocol have announced a project to increase Bitcoin liquidity in the Sui blockchain ecosystem, using a staking token called LBTC. By staking Bitcoin on Sui to Babylon, LBTC tokens can be created, serving as a collateral asset in Sui’s decentralized finance landscape. Cubist is developing the infrastructure for this process. The goal is to channel Bitcoin’s $1.8 trillion liquidity towards Sui, and allow Bitcoin holders more opportunities to use their assets. Notably, Sui has a total locked value of $1.4 billion, while Bitcoin staking tokens hold $4.5 billion total value.

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    Babylon Labs and Lombard Protocol are about to shake up the world of Bitcoin staking with their upcoming project involving Sui, an up-and-coming blockchain network. They made the big reveal on November 25, and it sounds pretty exciting.

    From December, anyone who’s got some Bitcoin lying around on Sui can stake it to Babylon, an extra layer squeeze in more Bitcoin transactions, and even create LBTC tokens – a type of staking token cooked up by Lombard.

    The whole point of this venture, according to the Sui and Babylon teams, is to draw more Bitcoin liquidity towards the Sui ecosystem. They want to make the decentralized finance world bigger and better with LBTC as a collateral asset and give Bitcoin holders a chance to do more with their coins via LBTC.

    They’re counting on LBTC to become a major player in Sui’s DeFi landscape and are keen to get Bitcoin’s $1.8 trillion worth of liquidity poured into Sui.

    Meanwhile, Cubist, a bunch of whizzes in blockchain development, will be putting together the infrastructure for depositing, minting, staking, and moving BTC to Sui. Jacob Phillips, one of the brains behind Lombard, reckons Bitcoin’s huge market cap offers tons of untapped potential. Cubist is keen on paving the way for Bitcoin holders to take full advantage of future onchain finance trends without compromising security or liquidity.

    Sui has been in the game since 2023 and has managed to amass about $1.4 billion in total locked value according to figures from DefiLlama. It’s known for its knack at dealing with high-performance decentralized apps.

    Bitcoin staking tokens currently hold around $4.5 billion total value locked in, as per stakingrewards.com. On the leaderboard of the most popular Bitcoin LSTs, SolvBTC comes out on top with $1.5 billion total value, followed closely by Lombard boasting a total value of around $1 billion.

    Compared to Ethereum and similar networks, stakers in the Bitcoin L2 lock their BTC in collateral to keep the networks secure and get rewards in return.

    Take note that Lombard’s LBTC is the biggest thing in Babylon, and they haven’t even started handing out staking rewards yet. Meanwhile, other Bitcoin LSTs like SolvBTC, which already rakes in around 1.2% APR from staking Bitcoin on CoreChain, are killing it in the yield stakes. This move towards Bitcoin staking by Solv Protocol is designed to tempt Bitcoin holders with opportunities to earn more from their digital currency.

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