Bitcoin Staking to Launch on Sui Network in December
Starting in December, Bitcoin holders will have the opportunity to stake BTC on Babylon, a Bitcoin Layer-2 network, via the Sui blockchain. Babylon Labs and Lombard Protocol revealed their plans on Nov. 25, aiming to bring liquid Bitcoin staking to Sui’s growing decentralized finance (DeFi) ecosystem.
Bitcoin holders on Sui will be able to stake their BTC to mint LBTC, Lombard’s liquid staking token (LST). This initiative seeks to channel Bitcoin liquidity into Sui, positioning LBTC as a key asset within Sui’s DeFi space. LBTC will enable activities like lending, borrowing, and trading, unlocking Bitcoin’s $1.8 trillion liquidity potential for use in decentralized applications.
Expanding Bitcoin’s Role in DeFi
LBTC is set to become a cornerstone of Sui’s DeFi ecosystem, facilitating broader participation for Bitcoin holders. Jacob Phillips, co-founder of Lombard, emphasized the goal of allowing Bitcoin holders to engage fully in on-chain financial activities while maintaining security and liquidity. Cubist, a blockchain developer, will build the infrastructure for BTC staking, minting, and bridging to Sui.
Bitcoin liquid staking tokens (LSTs) collectively account for approximately $4.5 billion in total value locked (TVL), according to stakingrewards.com. Among Bitcoin LSTs, Lombard’s LBTC is one of the largest on Babylon, while SolvBTC leads the market with a $1.5 billion TVL.
Sui’s Growing Ecosystem
Launched in 2023, Sui has gained traction as a high-performance layer-1 blockchain specializing in decentralized applications (DApps). It has attracted $1.4 billion in TVL, as reported by DefiLlama. Dubbed a potential “Solana killer,” Sui aims to grow its ecosystem further with initiatives like Bitcoin staking.
Bitcoin staking on Babylon marks a significant step in expanding yield opportunities for BTC holders. Similar to proof-of-stake networks, Bitcoin Layer-2 staking involves locking BTC as collateral to secure networks, with rewards distributed for participation.
As competition among Bitcoin LSTs intensifies, Lombard’s LBTC is positioned to play a major role in leveraging Bitcoin’s untapped potential in DeFi, alongside rivals like SolvBTC, which offers an annual yield of 1.2% through staking on CoreChain.
This development aligns with the broader trend of increasing Bitcoin yield opportunities across blockchain networks.
