BOB (Build on Bitcoin), a hybrid layer two (L2) network, has advanced its mission to position Bitcoin at the center of decentralized finance (DeFi) by integrating with Babylon, a Bitcoin staking protocol.
This collaboration enables BOB to secure transactions using Bitcoin as its anchor chain, providing a level of finality and irreversibility unique to the Bitcoin network.
Integration Brings Bitcoin Finality to BOB
The integration with Babylon equips Build on Bitcoin (BOB) with “Bitcoin finality,” ensuring that transactions recorded on its platform are permanently and irreversibly secured on Bitcoin’s blockchain. This mechanism, as a result, strengthens the security and trustworthiness of BOB’s hybrid layer two network, distinguishing it from other Bitcoin-based L2 solutions that lack Bitcoin-native security.
Babylon, recognized as the leading Bitcoin staking protocol, manages a total value locked (TVL) of approximately $6 billion. The protocol, as a result, allows Bitcoin holders to stake their BTC, contributing to the security of decentralized applications and earning rewards in return.
Introducing BOB as a Bitcoin Secured Network (BSN).
Through our integration with @babylonlabs_io, we’re bringing Bitcoin finality to the Hybrid L2 and making @build_on_bob the best place to use BTC Liquid Staking Tokens (LSTs).https://t.co/K6baJZ2TAs pic.twitter.com/YmQLiaa9r9
— BOB (@build_on_bob) December 18, 2024
Through Babylon’s protocol, BOB can use Liquid Staking Tokens (LSTs) to release Bitcoin liquidity into DeFi applications while retaining Bitcoin’s robust security.
Hybrid L2 Model Combines Bitcoin and Ethereum Features
Build on Bitcoin hybrid layer two model blends Bitcoin’s security with Ethereum’s smart contract capabilities. The network aims to create bridges to other blockchains while using Bitcoin as the final settlement layer.
With over $200 million in TVL, 320,000 users, and 100 projects, BOB has positioned itself as a prominent player in the Bitcoin DeFi ecosystem.
The integration is also part of BOB’s larger roadmap. As part of Phase 2, BOB will launch bridges that connect Bitcoin to other networks using BitVM, a new computing framework enabling Ethereum-like smart contracts on Bitcoin. The testnet release for BitVM is scheduled for early 2025, signaling BOB’s commitment to expanding Bitcoin’s DeFi potential.
Lombard’s LBTC Joins the BOB Ecosystem
To further enhance its ecosystem, BOB has announced the integration of LBTC, the largest Bitcoin LST, managed by Lombard Finance. LBTC, with a TVL of $1.6 billion, becomes the fourth LST deployment on BOB, following Ethereum, Base, and Binance Smart Chain. Approximately 80% of LBTC’s TVL is already actively deployed in DeFi applications, reflecting its importance in the staking landscape.
This addition bolsters Build on Bitcoin’s efforts to expand Bitcoin staking liquidity and amplify DeFi activity on its platform. Through partnerships with staking providers, wallets, and aggregators, BOB has simplified the process of staking Bitcoin with a one-click solution.
Subsequently, to celebrate its integration with Babylon, Build on Bitcoin has launched a 45-day campaign aimed at incentivizing Bitcoin staking and DeFi activity. Over this period, an additional 4.5 million Babylon Points will be distributed daily to eligible users.
In addition, the campaign includes additional incentives from BOB’s LST partners, such as Bedrock and PumpBTC, to encourage wider adoption. Users will be able to easily convert native Bitcoin into staking positions on Build on Bitcoin via the “BOB Stake” portal, which supports a seamless transition into DeFi applications.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Only a few days after the just concluded halving event, Build on Bitcoin (BOB), is now live on its mainnet. This marks a significant advancement in Bitcoin L2 innovation.
Build on Bitcoin Bringing the Best of Two Worlds
The launch of Build on Bitcoin signifies a key moment in Bitcoin’s integration into Decentralized Finance (DeFi) with support from some of the top Bitcoin-inclined venture capital firms. A few of these entities are UTXO, ViaBTC, AntAlpha, and CMS Holdings. As a hybrid Layer-2 solution, BOB merges the capabilities of both Bitcoin (BTC) and Ethereum (ETH).
Precisely, it utilizes Bitcoin’s top security and decentralization as well as Ether’s versatility. This cross-chain landscape enhances security and liquidity. Beyond these functionalities, it also unifies user bases, presenting individuals with efficient tools to navigate the cryptocurrency landscape more effectively.
Alexei Zamyatin, co-Founder of BOB claimed that these functionalities will afford BOB the opportunity to “empowers developers to easily build and deploy innovative dapps without compromising on security or scalability, while having access to the largest liquidity and user bases in the industry.”
Noteworthy, the launch is designed to unleash in phases and the first phase has already started. To bootstrap Phase 1, more than 40 projects were launched as it went live today. Another bout of 40+ Decentralized Applications (dApps) and infrastructure projects are also expected to go live on the platform within the next two to three weeks.
Features of BOB Phase 1
Upon closing its most recent seed fund round where it secured $10 million, the Build on Bitcoin protocol has registered outstanding momentum and adoption by early adopters, causing its Total Value Locked (TCL) to push above $300 million.
This TVL was made up of different digital assets including Bitcoin, Ethereum, and a few stablecoins. The aforementioned round was led by Castle Island Ventures with participation from Coinbase Ventures, Mechanism Ventures, Bankless Ventures and others.
Still in Phase 1, Build on Bitcoin started its FUSION program, a scheme that allows users to lock multiple tokens that earn them Spice points. These points are a show of a user’s active involvement and contribution to the BOB ecosystem. The BOB platform is now looking to launch season two of the Fusion program.
In the next phases, BOB plans to integrate Bitcoin’s Proof-of-Work (PoW) security and transactions that will settle on both Bitcoin and Ethereum, leveraging BitVM for enhanced security.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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