In a strategic move that bolsters its growth within the decentralized finance (DeFi) space, Sui has announced its integration with Bitcoin through
Bitcoin (BTC) liquidity will now be available on Sui (SUI) following the launch of $LBTC, a liquidity staking token (LST) pegged to BTC.
Babylon users will be able to start earning $LBTC in December, marking the beginning of a new era for Bitcoiners interested in staking within the Sui ecosystem.
$LBTC is different from other tokens like $wBTC or $cbBTC because it is not only a wrapped version of BTC, but it is also a LST. This type of token offers users the possibility to participate in Sui's DeFi ecosystem without having to sell their BTC.
Instead of holding them passively, users will be able to put their Bitcoin to work within DeFi protocols, generating passive income while maintaining their exposure to Bitcoin.
This functionality is crucial to fostering the adoption of Sui as a DeFi platform that can deliver value to both Bitcoiners and Sui users.
Like other wrapped tokens, $LBTC will be backed 1:1 by BTC, ensuring transparency and security in transactions within the Sui blockchain.
However, unlike wrapped tokens such as $wBTC on the Ethereum chain, $LBTC is managed in a way that facilitates its participation in Proof of Stake (PoS) systems, opening up new opportunities for L1 and L2 blockchains and rollups.
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