Babylon | Crypto

Babylon unveils a proof-of-concept for using native Bitcoin in DeFi lending, as BNB Chain and Hyperliquid post major updates. Bitcoin infrastructure company Babylon Labs claimed to have developed a system that enables native Bitcoin to be used as collateral for borrowing assets on Ethereum. Babylon Labs co-founder and Stanford University professor David Tse said on Wednesday that the company built a proof-of-concept that allows native Bitcoin to be used “trustlessly” as collateral for loans on Ethereum.  The comments follow a white paper release from the company, revealing a Bitcoin trustless vault system that leverages Bitcoin smart contract verification BitVM3 to lock BTC in per-user vaults. Here, withdrawals are gated by proofs of external smart contract state verified on Bitcoin.  Read more

Babylon Labs says it has built a system using BitVM3 that allows native Bitcoin to be used as trustless collateral for borrowing on Ethereum, but its trustless design raises questions. A co-founder of Bitcoin infrastructure company, Babylon Labs, claims to have built a system that allows for native Bitcoin to be used as trustless collateral to borrow on the Ethereum blockchain. In a Wednesday X post, Babylon Labs co-founder and Stanford University professor David Tse claimed Babylon built a proof-of-concept allowing for native Bitcoin (BTC) “to be used trustlessly as collateral to borrow on Ethereum for the first time.” The comments follow Babylon’s release of a white paper in early August, outlining what it calls a Bitcoin trustless vault system. The system leverages the Bitcoin smart contract verification system BitVM3 to lock BTC in per-user vaults, where withdrawals (redemption or liquidation) are gated by cryptographic proofs of external smart contract state verified on Bitcoin. Read more

Kraken has launched a Bitcoin staking service in partnership with Babylon, allowing users to earn BABY tokens. Crypto exchange Kraken has launched a new Bitcoin staking product through a protocol integration with Babylon Labs. In a Thursday announcement, Kraken said it has partnered with the Bitcoin (BTC) staking protocol Babylon. The integration allows the exchange’s users to earn interest on their Bitcoin holdings without the need for bridging, wrapping or lending. Kraken customers can use the service starting today by staking their Bitcoin without interacting with off-exchange wallets. The Bitcoin is locked in a vault on the Bitcoin blockchain and delegated to secure proof-of-stake (PoS) networks through the Babylon protocol. Read more