Overview of BTC Liquid Staking Track

The Bitcoin staking mechanism Babylon is about to go live, which will bring significant changes to the BTC ecosystem. Babylon achieves non-custodial staking of the BTC native asset through cryptography, allowing Bitcoin holders to earn staking rewards while ensuring security. Currently, multiple projects have launched BTC liquid staking solutions around Babylon, attempting to leverage trillions of dollars in funding.

Main Project Overview

pSTAKE

pSTAKE adopts an institutional custody liquidity model, where users stake funds to pSTAKE, which are then staked by the project team to Babylon. Its official liquid staking token yBTC has not yet been issued, with plans to launch in the future on Ethereum and other L2s. Currently, the product is in the v1 testnet phase, with over 40,000 users participating.

Lorenzo

Lorenzo has implemented a principal and interest separation business similar to Pendle. After users stake BTC, they can obtain three tokens: stBTC, YAT, and SPT, which represent the principal, yield rights, and withdrawal order, respectively. Lorenzo plans to launch the mainnet in two phases and is currently conducting pre-launch staking.

Lombard

Lombard adopts a more decentralized model, allowing users' funds to be directly staked to Babylon, managed by a decentralized Consortium overseeing the staking process. Its liquid staking token LBTC is planned for cross-chain issuance and integration with the DeFi ecosystem. Lombard is currently in the Private Beta phase, with staking open but withdrawals not yet available.

Solv

Solv integrates various yields from BTC Layer2 and ETH Layer2, tokenized as SolvBTC. Currently, it has attracted 12,000 BTC staked on Merlin Chain, Arbitrum, and BNB Chain. Solv has three types of points mechanisms: basic points, accelerated points, and referral points.

Bedrock

Bedrock developed the UniBTC protocol, allowing Ethereum users to stake their wBTC to Babylon. UniBTC is currently issued on Ethereum, and holders can earn Bedrock rewards and Babylon points.

Master Protocol

Master Protocol is a yield aggregation platform that aggregates multiple BTC ecosystem projects. Its Master Yield Market product splits aggregated assets into MPT and MYT for users to trade. The project also launched the Master Yield Pass NFT incentive program.

Chakra

Chakra is a ZK-driven shared modular Bitcoin settlement layer. Its liquid staking token tlBTC can serve as a staking certificate, DeFi asset, and all-chain settlement asset. Chakra has performed outstandingly on the Babylon testnet and has launched a points system.

Industry Outlook

BTC staking is expected to significantly enhance the overall yield of the BTC ecosystem, thereby initiating a positive flywheel effect. Unlike ETH staking, BTC staking is more akin to the restaking business of eigenlayer, making it difficult to form a monopoly among giants. Early projects in this field have the opportunity to establish their territory, making them worthy of investor attention.