Babylon Labs and Lombard Protocol have unveiled a groundbreaking initiative to merge Bitcoin with Sui, the innovative Layer 1 blockchain and smart contract platform. This collaboration is set to enhance Bitcoin liquidity within the Sui ecosystem, bolstering the decentralized finance landscape by utilizing LBTC as a collateral asset. Furthermore, it encourages Bitcoin holders to maximize their assets’ potential through LBTC, which is recognized as the largest liquid staking provider in Babylon.
As of December, Bitcoin holders will be able to stake BTC via the Babylon staking protocol and receive LBTC natively minted on Sui, the liquid staking token from Lombard Protocol. LBTC is set to emerge as a fundamental asset within Sui’s DeFi landscape, facilitating lending, borrowing, and trading to tap into Bitcoin’s staggering $1.8 trillion liquidity on the Sui platform.
Lombard has showcased the immense potential of Bitcoin liquidity within the Ethereum ecosystem. Its premier LBTC token has exceeded $1 billion in minted assets, and more than 50% of LBTC is actively utilized in DeFi applications. Now, this tested framework is making its way to Sui.
Cubist is forging a strategic partnership with Lombard to develop the infrastructure to integrate Bitcoin seamlessly into the Sui ecosystem. Cubist is set to deliver top-tier key management, ensuring unparalleled security and performance for your deposits, minting, staking, and bridging activities.
“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,” said Fisher Yu, co-founder & CTO of Babylon Labs.
With the highest crypto market cap of $1.8 trillion and a huge innovation in facilitating peer-to-peer transfers of digital assets without needing a trusted third party, Bitcoin is highly limited when it comes to programmability on the chain. Sui stands out with its exceptional programmability and composability, establishing itself as the ultimate foundational layer for universal coordination of digital assets.
“Bringing BTC into Sui is a match made in heaven,” said Jameel Khalfan, Head of Ecosystem Development at Sui Foundation. “Thanks to this collaboration with Babylon, Lombard, and Cubist, users from all blockchain ecosystems can come to Sui to participate in a thriving ecosystem of financial services in which Bitcoin will play a key role.”
The Sui DeFi ecosystem is already harnessing the potential of Bitcoin on its platform. Elliscope Fang, the visionary CEO of NAVI, a frontrunner in the borrow/lend space on Sui, has unveiled intentions to collaborate with Lombard to bolster LBTC pools on the NAVI platform.