Babylon co-founder Fisher Yu shared how the protocol attracted $3.5 billion in BTC by pioneering native Bitcoin staking, a significant milestone for Bitcoin-based DeFi. Speaking at the Bitcoin MENA event in Abu Dhabi, Yu explained that prior Bitcoin DeFi solutions required users to trust third parties, introducing counterparty risks similar to centralized finance.“
True DeFi eliminates trust in third parties, relying only on the blockchain,” Yu said. Babylon’s innovation allows Bitcoin holders to stake directly without transferring control, ensuring security and decentralization.
The staked Bitcoin will secure a proof-of-stake (PoS) blockchain launched by Babylon, rewarding stakers not with Bitcoin, but with the PoS chain’s native token. Yu highlighted this as a pivotal step toward trustless Bitcoin DeFi, unlocking new use cases for the largest cryptocurrency.
Source: Cointelegraph
