Babylon Labs and Lombard Protocol are set to introduce liquid Bitcoin staking to the Sui blockchain, allowing Bitcoin holders to stake BTC and obtain LBTC, Lombard's liquid staking token, starting in December. This initiative is designed to enhance Bitcoin liquidity within the Sui ecosystem, facilitating lending, borrowing, and trading, and tapping into Bitcoin's massive $1.8 trillion market capitalization. Jacob Phillips, co-founder of Lombard, highlighted the significant potential in Bitcoin's liquidity. With approximately $1.4 billion in total value locked, Sui aims to attract more users to decentralized finance (DeFi) through LBTC, which will serve as a collateral asset. The protocol is expected to enhance participation in onchain finance, safeguarding security and liquidity for Bitcoin holders. Currently, the market for Bitcoin liquid staking tokens amasses around $4.5 billion, with competitors like SolvBTC already distributing yields. In comparison, Lombard's LBTC is poised to become a key component of Sui's DeFi offerings from its launch in December.

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