Nomic, a well-known name in the cryptocurrency market, shakes up the industry with the recent launch of stBTC. It is a Bitcoin Liquid Staking Token created by Babylon, another Cosmos chain-based project focused on a Bitcoin staking protocol. The invention has a potential to change the decentralized finance game while also benefiting from the initial phases of the technology.
Introducing $stBTC, a Bitcoin Liquid Staking Token powered by @babylon_chain.https://t.co/b7duK3MBVs
— Nomic (@nomicbtc) April 10, 2024
Nomic and Babylon Advance Bitcoin in DeFi with stBTC
Both Nomic and Babylon are currently participating in various Bitcoin and Cosmos ecosystem initiatives. This cooperation is trailblazing for both projects and the push to close the gap between Bitcoin and DeFi. Babylon’s Bitcoin staking protocol operates on the Bitcoin blockchain and utilizes cutting-edge cryptographic methods including extractable one-time signatures to guarantee the staked BTC’s security.
Users can stake their BTC and earn rewards while being able to disengage and retrieve their property at any moment without penalty. Users can mint stBTC by locking up nBTC using Nomic’s Babylon BTC staking pool with Babylon’s staking protocol integrated. This immediately transfers the locked funds to a Babylon staking UTXO. It also secures other chains across the ecosystem. Users can retain their stBTC to generate rewards in the form of any ecosystem token, identical to the Cosmos ICSDS.
Nomic’s stBTC Set for Public Release Following Testnet Success
It is important to note that, while locked in a staking position, stBTC remains fully liquid, and it may be transmitted or exchanged at any moment. Burn stBTC will unlock it, and the user will get the equivalent nBTC. However, there may be a waiting period of up to seven days. Nonetheless, utilizing some science tempting technologies and cryptoeconomic novelty, risk might still exist.
Although stBTC is currently functioning in its own unique test terra, it will be offered for the public to use prior to the mainnet’s general public release. This unique testnet combines Babylon’s testnet, which includes the most recent Bitcoin staking of Nomic, allows members to deposit Signet BTC into Nomic for testnet nBTC and then stake it for stBTC.
Looking ahead, Babylon’s Bitcoin staking solution makes Nomic one of the prime candidates to be the initial PoS chain to implement it. This would supplement an extra layer of defense to Nomic’s network. It will alos safeguard both the staked NOM and $BTC chains via Babylon and help users generate formulating their wBTC and NOM incentives.