Sui Network Expands with Bitcoin Staking via Babylon Layer 2

• The integration of Bitcoin staking via Babylon Labs and Lombard Protocol is expected to enhance liquidity and bring Bitcoin’s $1.8 trillion liquidity to the Sui ecosystem, boosting its DeFi offerings.
• Sui is positioning itself as a strong competitor in the DeFi space, with the introduction of Bitcoin liquid staking tokens and growing competition from other platforms offering staking rewards.

Bitcoin holders can stake their BTC on the Sui blockchain starting in December, thanks to a collaboration between Babylon Labs and Lombard Protocol. This initiative will allow users to mint LBTC, a liquid staking token (LST) from Lombard, enabling Bitcoin liquidity to flow into the Sui ecosystem. Babylon builds native use cases for BTC to bring Bitcoin security and liquidity to decentralized systems.

We are excited that Sui shares this vision and teams up with us and our collaborators to make this a reality on Sui.

Previously, CNF reported that after SUI, Bitcoin Cash (BCH), and Algotech (ALGT) are some of the top crypto coins investors are buying massively. As revealed in a CNF update, Fisher Yu, co-founder & CTO of Babylon Labs, stated in a post that:

LBTC is expected to become a key asset in Sui’s decentralized finance (DeFi) space, supporting lending, borrowing, and trading while unlocking Bitcoin’s vast $1.8 trillion liquidity.

Growing DeFi Opportunities on Sui

Cubist, a blockchain developer, is creating the infrastructure to facilitate staking, minting, and bridging BTC to Sui. Jacob Phillips, Lombard’s co-founder, highlighted Bitcoin’s untapped potential, emphasizing this move as a step toward integrating Bitcoin holders into modern on-chain finance without sacrificing liquidity or security. Jacob Phillips, Co-Founder of Lombard, said:

We are delighted to bring Bitcoin liquidity to Sui in collaboration with Babylon Labs and Cubist.

Sui, launched in 2023 and already boasting $1.4 billion in total value locked (TVL), is positioning itself as a high-performance DeFi platform and a strong competitor to networks like Solana.

Competition Among Bitcoin LSTs

Bitcoin liquid staking tokens are gaining traction, commanding a combined TVL of $4.5 billion. Lombard’s LBTC, the largest on Babylon, is set to expand its presence once staking rewards begin.

Currently, competitors like SolvBTC on CoreChain offer around 1.2% APR, and Solv Protocol recently launched its Bitcoin LST on Solana to attract BTC holders. This race to innovate reflects the growing demand for yield opportunities in the Bitcoin ecosystem.

By integrating Bitcoin staking, Sui aims to enhance its DeFi landscape and attract a broader user base, leveraging the synergies of Babylon’s infrastructure and Lombard’s expertise in liquid staking.

As of now, Bitcoin (BTC) is trading at $92,353.27, with a decrease of 5.61% in the past day and a surge of 0.67% in the past week.

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