Babylon Makes BTC a Yield-Bearing Asset Without Custodians
The post Babylon Makes BTC a Yield-Bearing Asset Without Custodians appeared on BitcoinEthereumNews.com.
Key Points: – Babylon enables native BTC staking with no wrapping, custody, or bridges required.– EOTS and timestamping ensure trustless slashing and fast unbonding.– Genesis Chain coordinates staking across PoS chains using Bitcoin-secured infrastructure. Babylon allows users to stake Bitcoin directly from the Bitcoin chain, locking BTC into native contracts without using wrapped assets, custodians, or bridges. Validators are coordinated via the Babylon Genesis Chain, a Cosmos SDK Layer 1, which handles finality signatures, timestamp aggregation, and staker-matching across PoS chains. With security innovations like Extractable One-Time Signatures (EOTS), Bitcoin-based timestamping, and finality gadgets, Babylon enables trustless slashing, fast unbonding, and Byzantine-resilient cross-chain staking. Unlike traditional models that fragment liquidity and rely on centralized signers, Babylon offers a decentralized, self-custodial solution for yield generation on Bitcoin, positioning BTC as a foundational security asset in the multi-chain staking economy. How Babylon Bitcoin Staking Works Babylon introduces a system where Bitcoin can be staked directly on its native chain, eliminating the need for asset wrapping, bridging, or third-party custody. The protocol enables Bitcoin holders to lock BTC into a native contract, providing economic security for external Proof-of-Stake (PoS) chains. Rewards are issued by the PoS chains benefiting from this security, while the BTC itself remains secured on the Bitcoin network. Unbonding is available at any time, subject to a withdrawal delay (e.g., 3 days), and slashing mechanisms ensure penalties for misbehavior. Babylon Staking Safety – Honest vs. Compromised Validator. Source: docs.babyIonIabs.io If a validator violates consensus safety, a portion of their BTC can be burned, enforcing compliance through cryptographic accountability. Key Security Innovations (Finality Gadgets, EOTS, Timestamping) Three core cryptographic components support Babylon’s staking framework: Feature Description Extractable One-Time Signatures (EOTS) Ensures that double-signing leads to key exposure, enabling the network to slash misbehaving stakers by destroying locked BTC. Provides trustless and automated…
