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

BOB (Construct on Bitcoin), a hybrid layer two (L2) community, has superior its mission to place Bitcoin on the heart of decentralized finance (DeFi) by integrating with Babylon, a Bitcoin staking protocol.

This collaboration allows BOB to safe transactions utilizing Bitcoin as its anchor chain, offering a degree of finality and irreversibility distinctive to the Bitcoin community.

Integration Brings Bitcoin Finality to BOB

The mixing with Babylon equips Construct on Bitcoin (BOB) with “Bitcoin finality,” making certain that transactions recorded on its platform are completely and irreversibly secured on Bitcoin’s blockchain. This mechanism, because of this, strengthens the safety and trustworthiness of BOB’s hybrid layer two community, distinguishing it from different Bitcoin-based L2 options that lack Bitcoin-native safety.

Babylon, acknowledged because the main Bitcoin staking protocol, manages a complete worth locked (TVL) of roughly $6 billion. The protocol, because of this, permits Bitcoin holders to stake their BTC, contributing to the safety of decentralized functions and incomes rewards in return.

Introducing BOB as a Bitcoin Secured Community (BSN).

Via our integration with @babylonlabs_io, we’re bringing Bitcoin finality to the Hybrid L2 and making @build_on_bob one of the best place to make use of BTC Liquid Staking Tokens (LSTs).https://t.co/K6baJZ2TAs pic.twitter.com/YmQLiaa9r9

— BOB (@build_on_bob) December 18, 2024

Via Babylon’s protocol, BOB can use Liquid Staking Tokens (LSTs) to launch Bitcoin liquidity into DeFi functions whereas retaining Bitcoin’s sturdy safety.

Hybrid L2 Mannequin Combines Bitcoin and Ethereum Options

Construct on Bitcoin hybrid layer two mannequin blends Bitcoin’s safety with Ethereum’s sensible contract capabilities. The community goals to create bridges to different blockchains whereas utilizing Bitcoin as the ultimate settlement layer.

With over $200 million in TVL, 320,000 customers, and 100 initiatives, BOB has positioned itself as a distinguished participant within the Bitcoin DeFi ecosystem.

The mixing can be a part of BOB’s bigger roadmap. As a part of Part 2, BOB will launch bridges that join Bitcoin to different networks utilizing BitVM, a brand new computing framework enabling Ethereum-like smart contracts on Bitcoin. The testnet launch for BitVM is scheduled for early 2025, signaling BOB’s dedication to increasing Bitcoin’s DeFi potential.

Lombard’s LBTC Joins the BOB Ecosystem

To additional improve its ecosystem, BOB has introduced the mixing of LBTC, the biggest Bitcoin LST, managed by Lombard Finance. LBTC, with a TVL of $1.6 billion, turns into the fourth LST deployment on BOB, following Ethereum, Base, and Binance Good Chain. Roughly 80% of LBTC’s TVL is already actively deployed in DeFi functions, reflecting its significance within the staking panorama.

This addition bolsters Construct on Bitcoin’s efforts to increase Bitcoin staking liquidity and amplify DeFi exercise on its platform. Via partnerships with staking suppliers, wallets, and aggregators, BOB has simplified the method of staking Bitcoin with a one-click resolution.

Subsequently, to have fun its integration with Babylon, Construct on Bitcoin has launched a 45-day marketing campaign aimed toward incentivizing Bitcoin staking and DeFi exercise. Over this era, a further 4.5 million Babylon Factors can be distributed day by day to eligible customers.

As well as, the marketing campaign consists of further incentives from BOB’s LST companions, corresponding to Bedrock and PumpBTC, to encourage wider adoption. Customers will have the ability to simply convert native Bitcoin into staking positions on Construct on Bitcoin through the “BOB Stake” portal, which helps a seamless transition into DeFi functions.