Nomic Introduces Bitcoin Liquid Staking Token using Babylon’s Protocol

Nomic DAO Foundation is making waves in the crypto industry with its announcement of integrating Babylon’s Bitcoin staking protocol into its decentralized non-custodial Bitcoin bridge to introduce stBTC, a groundbreaking Bitcoin Liquid Staking Token (LST). LSTs have been gaining momentum in the decentralized finance sector, with over $50 billion total value locked. Nomic’s stBTC aims to offer Bitcoin holders the opportunity to stake their assets while maintaining liquidity within the Cosmos ecosystem.
Traditional staking of BTC involves locking it within a UTXO, making it non-transferable, but Nomic’s decentralized BTC reserve allows the exchange of BTC for nBTC tokens that can be freely moved across IBC-compatible chains. Through Nomic’s Staking Pool, users can lock nBTC to mint stBTC tokens, ensuring flexibility and accessibility in staked assets within the Cosmos ecosystem. Additionally, stakers receive rewards through IBC Interchain Account transactions, incentivizing participation in the staking process.
The integration of Babylon’s Bitcoin staking protocol into Nomic will enhance the security of Nomic while giving Bitcoin holders a new opportunity to stake their assets and earn yield. Nomic will become one of the first PoS chains secured by both staked NOM and BTC via Babylon, providing users with dual-stake security and unique rewards redeemable for BTC. This collaboration is seen as a practical and innovative solution for Bitcoin holders to participate in DeFi and earn yields through staking.
CEO of Turbofish, Matt Bell, emphasized the importance of decentralized custody and staking in Bitcoin and praised the impact of pairing Nomic with Babylon to benefit Bitcoin holders and enhance Bitcoin DeFi capabilities. Co-founder of Babylon, David Tse, expressed excitement about Babylon’s role in Nomic’s launch of stBTC, highlighting the potential for Bitcoin holders to utilize their staked assets for DeFi, while supporting the security of Proof-of-Stake systems.
stBTC is available in testnet for users to experience its functionality and benefits before the official mainnet release, offering a glimpse into the future of decentralized finance. Nomic DAO Foundation, a non-profit organization dedicated to the growth and integration of the Nomic ecosystem, supports the goals of the Nomic DAO and aims to foster a self-sufficient ecosystem.
In conclusion, Nomic’s integration with Babylon’s Bitcoin staking protocol represents a leap forward in the decentralized finance sector, providing Bitcoin holders with new opportunities to stake their assets and earn yield while maintaining liquidity and security. This innovative collaboration underscores the potential for Bitcoin DeFi to rival Ethereum DeFi in trading volumes and total value locked, ushering in a new era of decentralized finance.

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