BOB L2 Taps Babylon To Secure Transactions with Bitcoin As Anchor Chain

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As a seasoned crypto investor with over a decade of experience under my belt, I can’t help but be intrigued by the recent integration between Build on Bitcoin (BOB) and Babylon. The merger of these two platforms not only brings “Bitcoin finality” to BOB but also positions it as a leader in the Bitcoin DeFi ecosystem.

In simpler terms, the hybrid network known as BOB (Built on Bitcoin), which operates on a secondary layer, is progressing towards making Bitcoin pivotal in the world of Decentralized Finance (DeFi). This is achieved by connecting with Babylon, a system that facilitates Bitcoin staking.

Through this partnership, BOB can confirm transactions using Bitcoin as their primary reference point, offering a one-of-a-kind permanence and unalterability that is distinctive to the Bitcoin system.

Integration Brings Bitcoin Finality to BOB

Partnering with Babylon enhances Build on Bitcoin (BOB) by providing “permanent Bitcoin confirmation,” which means transactions processed through its system are permanently and irreversibly locked into Bitcoin’s blockchain. This feature boosts the security and credibility of BOB’s hybrid layer two network, setting it apart from other second-layer solutions based on Bitcoin that don’t have native Bitcoin security.

In simpler terms, Babylon – known as the top Bitcoin staking method – currently oversees around $6 billion worth of assets locked within it. This means Bitcoin owners can deposit their coins for staking, which not only enhances the safety of various decentralized applications but also earns them rewards in the process.

Introducing BOB as a Bitcoin Secured Network (BSN).

By partnering with Babylon Labs (@babylonlabs_io), we’re enhancing the Hybrid L2 platform to provide irreversible Bitcoin transactions, making Build on Bob (@build_on_bob) an ideal choice for utilizing Bitcoin Liquid Staking Tokens (LSTs).

— BOB (@build_on_bob) December 18, 2024

Via the Babylon system, BOB can leverage Liquid Staking Tokens (LSTs) to make Bitcoin’s liquidity available in Decentralized Finance (DeFi) platforms, all while keeping the strong security that Bitcoin offers.

Hybrid L2 Model Combines Bitcoin and Ethereum Features

This model, known as a “hybrid layer two solution,” combines Bitcoin’s robust security features with Ethereum’s versatile smart contract functionality. The objective is to establish connections with other blockchain networks, utilizing Bitcoin as the ultimate layer for transaction resolution.

Boasting more than $200 million in Total Value Locked (TVL), serving approximately 320,000 users, and supporting around 100 different projects, BOB stands as a leading figure within the Bitcoin Decentralized Finance (DeFi) landscape.

The integration is also part of BOB’s larger roadmap. As part of Phase 2, BOB will launch bridges that connect Bitcoin to other networks using BitVM, a new computing framework enabling Ethereum-like smart contracts on Bitcoin. The testnet release for BitVM is scheduled for early 2025, signaling BOB’s commitment to expanding Bitcoin’s DeFi potential.

Lombard’s LBTC Joins the BOB Ecosystem

In order to improve its platform, BOB has revealed plans to incorporate LBTC, a significant Bitcoin Liquid Swap Token managed by Lombard Finance. With a Total Value Locked (TVL) of $1.6 billion, LBTC now joins Ethereum, Base, and Binance Smart Chain as the fourth LST deployed on BOB. Currently, around 80% of LBTC’s TVL is actively engaged in DeFi applications, underscoring its significance within the staking environment.

Enhancing Bitcoin’s endeavors to increase Bitcoin staking options and boost DeFi actions on its network, BOB collaborates with various staking service providers, digital wallets, and aggregators. By offering a straightforward one-click approach, BOB simplifies the process of staking Bitcoin for users.

Following the merger with Babylon, Build on Bitcoin has initiated a 45-day promotional event to motivate Bitcoin staking and Decentralized Finance (DeFi) engagement. During this timeframe, an extra 4.5 million Babylon Points will be given out daily to qualifying users.

Moreover, this campaign offers extra motivations from BOB’s collaborators like Bedrock and PumpBTC, aiming to boost acceptance. Users will find it straightforward to swap native Bitcoins for staking positions on Build on Bitcoin through the “BOB Stake” platform. This platform facilitates a smooth transition into DeFi applications.

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2024-12-19 02:12