Key Points
- Nomic and Babylon partner to launch a liquid bitcoin staking token (LST) named stBTC.
- Babylon enables Bitcoin holders to earn rewards by staking assets on proof-of-stake blockchains.
Nomic, a Layer 1 blockchain that facilitates a decentralized Bitcoin bridge, has announced the launch of a liquid staking token (LST) dubbed stBTC.
The development is a result of a partnership with Babylon, a Bitcoin staking protocol.
Partnership Details
The collaboration will allow Babylon to dual-stake Nomic's security using staked Bitcoin and staked NOM, as per a statement from Nomic's developers.
Users can leverage Babylon to stake Bitcoin to Nomic, which rewards them with NOM and nBTC that can be exchanged for Bitcoin.
The nBTC cryptocurrency signifies 1:1 ownership of Bitcoin in a token compatible with the Inter-Blockchain Communication Protocol (IBC).
This standardized protocol enables various blockchains to interact, allowing users to utilize nBTC on the decentralized Cosmos exchange Osmosis, the Cosmos Hub, and other DeFi protocols.
Future Plans and Testnet
Nomic plans to hold a funding round later this year. The stBTC is currently undergoing testing but will transition to the mainnet once Babylon does the same.
Turbofish, a blockchain tech firm, is one of Nomic's main contributors.
Turbofish CEO Matt Bell stated that Nomic and Babylon offer two key elements to Bitcoin: decentralized custody and staking.
Bell believes these innovations have the potential to make Bitcoin DeFi compete with the trading volumes and total value locked of Ethereum DeFi.
Babylon allows Bitcoin holders to earn rewards by staking their assets on proof-of-stake blockchains.
The platform's developers launched its first testnet on February 28.
Babylon also secured $18 million in a Series A funding round co-led by Polychain Capital and Hack VC, with additional support from Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures and Symbolic Capital in early December 2023.
