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The rise of the BTC liquid staking ecosystem: 7 major projects competing for Babylon dividends.
Overview of BTC Liquid Staking Track
As the largest cryptocurrency, Bitcoin has long lacked a native staking mechanism. With the emergence of the Babylon project, non-custodial Bitcoin staking solutions have become possible, opening up new revenue streams for BTC holders. Babylon allows users to stake BTC on other PoS blockchains to earn staking rewards while keeping the BTC on the Bitcoin mainnet, secured by the PoW mechanism.
This innovative model has triggered a surge of BTC liquid staking projects, attempting to provide users with an experience similar to that of a savings account - depositing and withdrawing at will while earning interest. Mainstream solutions include:
pSTAKE: Adopts an institutional custody liquidity model, with user funds being held by institutions such as Cobo. yBTC is the official liquid staking token, planned to support multiple chains.
Lorenzo: Implement the separation of principal and interest business. Issue stBTC as a staking certificate, as well as YAT( revenue accumulation token ) and SPT( staking proof token ).
Lombard: Adopts a decentralized Consortium to manage the staking process, users stake directly to Babylon. LBTC is a liquid staking token.
Solv: Integrates BTC Layer2 and ETH Layer2 yields, tokenizing them into SolvBTC. Supports multi-chain ecosystem.
Bedrock: Develop the UniBTC protocol to allow Ethereum users to stake their wBTC to Babylon.
Master Protocol: Yield aggregation platform, packaging assets as MSY and splitting into MPT( principal ) and MYT( interest ) transactions.
Chakra: A ZK-driven modular Bitcoin settlement layer, issuing tlBTC as a stake certificate.
These projects each have their own characteristics, providing users with a variety of BTC stake options. With the Babylon mainnet set to launch soon, the BTC staking ecosystem is expected to experience rapid development, improving overall asset yields and promoting innovation within the BTC ecosystem. Unlike ETH staking, the BTC staking sector may present a more decentralized competitive landscape, offering opportunities for early projects and investors.