BOB (“Build on Bitcoin”), a Hybrid Layer-2 (L2) that combines Bitcoin’s security with Ethereum’s DeFi innovation and versatility, has announced its integration with Babylon, the leading BTC staking protocol. This integration establishes BOB as a Bitcoin Secured Network (BSN), with Babylon providing Bitcoin finality for the novel Hybrid L2 design. This is an important step within phase 2 of BOB’s roadmap, which will start rolling out in early 2025.
BOB aims to drive the adoption of BTC Liquid Staking Tokens (LSTs), releasing untapped BTC liquidity into DeFi and underscoring BTC’s role as the future backbone of DeFi. BOB already supports a thriving ecosystem with $200+ million in DeFi Total Value Locked (TVL), featuring Babylon-backed LSTs by Solv, Bedrock, and PumpBTC. In addition, BOB’s 1-click staking product, BOB Stake will make it easy for millions of users to obtain Babylon LSTs with just a single Bitcoin transaction, through integrations with third party staking services like Staking Rewards, Xverse Earn and Everstake.
To coincide with BOB’s new BSN status, Lombard has announced they will be bringing LBTC to the network. LBTC is the largest Bitcoin LST with ~$1.5 billion TVL, of which 80% is actively deployed in DeFi. BOB will be the fourth native LBTC deployment, following Ethereum, Base and BSC.
Starting today, additional Babylon points for BTC LSTs will be allocated to users of BOB for the next 45 days. This presents the best opportunity for earning points other than through direct Bitcoin staking using the Babylon Bitcoin staking protocol.
Alexei Zamyatin, Co-Founder of BOB and core BitVM contributor said: “Accessing Bitcoin finality through Babylon as a BSN is a natural fit for BOB’s Hybrid Layer-2 model, which combines the best of Bitcoin and Ethereum on one platform. With LSTs built on Babylon already contributing significantly to BOB’s DeFi TVL, and the imminent integration of Lombard’s LBTC, this collaboration reinforces our commitment to establishing BOB as the home for BTC DeFi. There is enormous potential in this space, with DeFi accounting for just 0.1% of BTC’s market cap compared to 30% for ETH.”
Babylon allows users to self-stake BTC directly on the Bitcoin blockchain without the need for bridging or wrapping assets. This preserves Bitcoin’s inherent security while enabling holders to earn rewards on their assets. With its latest BTC staking cap launched last week, Babylon has once again demonstrated the surging demand for BTC staking, following the rapid success of its previous caps.
“We’re thrilled to support BOB in its journey to become a Bitcoin Secured Network,” said Fisher Yu, CTO of Babylon Labs. “Integrating Babylon Bitcoin staking into BOB’s Hybrid Layer-2 model means laying the foundation for a robust Bitcoin DeFi ecosystem. This integration is a key step towards realizing the vision of a Bitcoin-secured decentralized world.”
The integration follows the release of BOB’s Hybrid L2 Vision Paper, outlining BOB’s role in positioning Bitcoin at the centre of DeFi. Phase 2 of the roll out of the Hybrid L2 vision involves the addition of Bitcoin finality, now provided by Babylon, plus the launch of trust-minimized Bitcoin bridges powered by BitVM, due for testnet release in Q1 2025. This will allow BOB to combine Bitcoin’s security with Ethereum’s innovation, bringing both ecosystems closer for developers and users alike.