In a groundbreaking development for the blockchain community, SatLayer has announced the launch of Phase I of its Mainnet on Babylon Genesis, the world’s first Layer 1 (L1) secured by Bitcoin. This innovative move not only fortifies the security of decentralized applications and infrastructure but also significantly boosts Bitcoin rewards through a pioneering liquid staking solution.
A New Era of Bitcoin-Backed Liquidity
Following the recent launch of Babylon Genesis and its native token, BABY, SatLayer has quickly become one of the first restaking decentralized applications (dApps) on the platform. By leveraging Bitcoin’s immense liquidity and robust economic security, SatLayer is set to extend these benefits beyond traditional L1/L2 chains to various applications and infrastructure projects. Initially, the focus is on Babylon Genesis, with plans to extend to leading L1 and L2 ecosystems in the near future. The innovative protocol is paving the way for exciting use cases such as under-collateralized loans, slashing insurance, and on-chain prime brokerage.
Fisher Yu, co-founder of the Babylon Bitcoin staking protocol, expressed his enthusiasm: “We’re excited about SatLayer’s launch on Babylon and what this means for BTC-powered applications and infrastructure. SatLayer will help expand the Babylon Genesis ecosystem, and we’re looking forward to seeing what SatLayer and their other integrators will build on Babylon Genesis.”
Cube: Redefining Liquid Staking on Babylon Genesis
To further bolster the Babylon Genesis ecosystem, SatLayer has introduced Cube, a Babylon-native liquid staking solution designed specifically for the BABY token. Cube allows users to easily stake their BABY tokens and receive cBABY—a liquid staking token that unlocks additional rewards. This token can then be deployed in SatLayer or integrated with downstream decentralized finance (DeFi) protocols such as Tower, Babylon Genesis’ decentralized exchange (DEX), and various lending platforms.
The advantage of Cube lies in its native integration with Babylon Genesis, offering users a seamless staking experience without the need for bridging across different networks. This native approach not only enhances user experience but also strengthens the overall security of Babylon Genesis while boosting the growth of its ecosystem.
Luke Xie, co-founder of SatLayer, highlighted the transformative impact of Cube: “Beyond native $BABY staking, the introduction of $cBABY with the launch of Cube creates a multiplier effect on $BABY’s efficiency and yield generation. Our goal is to connect the broader ecosystem in a way that scales security alongside adoption, without requiring a proportional increase in locked capital.”
Bitcoin’s Transformation into a Programmable Asset
With over $250 million in Bitcoin deposited at launch, SatLayer sets a robust foundation for Bitcoin DeFi, accelerating the transformation of Bitcoin into a fully programmable asset. This initiative is not only expected to unlock trillions of dollars worth of idle Bitcoin but also opens up new opportunities for nation-states, institutions, and individual users to earn multiple streams of yield on their BTC.
SatLayer’s innovative approach, deploying a suite of smart contracts on Babylon Genesis, ensures full programmability of slashing conditions—ranging from node liveness to challenge proofs. This framework enables a wide array of applications such as bridges, DEXs, launchpads, and oracles to be secured by restaked Bitcoin, effectively harnessing Bitcoin’s reputation as a pristine asset and reliable collateral.
A Vision for a Bitcoin-Secured Decentralized World
Behind these revolutionary developments is Babylon Labs, a company dedicated to creating Bitcoin security-sharing protocols with a vision of a decentralized world secured by Bitcoin. Their latest innovation, a trustless and self-custodial Bitcoin staking protocol, allows Bitcoin holders to stake their assets on other decentralized systems including PoS chains, L2s, and Data Availability (DA) layers.
This eliminates the need for third-party custody, bridges, or wrapping services, thereby combining the security and widespread adoption of Bitcoin with the efficiency and scalability of PoS systems. SatLayer and Babylon Labs continue to push the boundaries of blockchain technology, and the integration of Bitcoin’s unparalleled security with scalable and efficient decentralized systems heralds a new era of financial innovation and opportunity.
