Lombard has forged a strategic alliance with Babylon, securing $16 million for Bitcoin ‘restaking,’ a practice enabling BTC holders to earn interest while bolstering the security of PoS blockchains such as Ethereum and Cardano.
Polychain Capital underscores the transformative potential of restaking, repositioning Bitcoin as a productive asset within the Web3 ecosystem. Teaming up with Babylon, Lombard has facilitated $16 million for Bitcoin ‘restaking,’ mirroring Ethereum’s approach. This initiative allows BTC holders to earn interest by leveraging their BTC to enhance the security of other crypto networks. This development, hailed earlier in 2024 as a “game-changer” in crypto by CNF, highlights Babylon’s model, enabling PoS blockchains like Ethereum and Cardano to benefit from heightened security. It also offers BTC owners new avenues for utility and profitability.
Collin Brown, a prominent blockchain researcher, expressed his perspective via Twitter, framing this move as a pivotal step towards transforming BTC from a store of value into a productive DeFi asset integrated into the broader Web3 ecosystem.
Additionally, Brown emphasized that Polychain Capital leads the funding initiative, underscoring Bitcoin’s potential to drive growth across blockchain platforms. Major contributors include BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.
Lombard’s primary objective with restaking is to elevate BTC from a mere store of value to a dynamic asset driving sustainable growth within the Web3 economy. Initially introduced by Ethereum, the concept of ‘restaking,’ exemplified by EigenLayer, stands as a milestone in DeFi history. StakeLayer, a derivative on Bitcoin, has also announced its presale distribution, as detailed in a CNF post. EigenLayer rapidly amassed $18 billion in deposits within a year by offering users additional interest on assets staked to secure Ethereum.
Olaf Carlson-Wee, founder of Polychain Capital, emphasized Bitcoin’s robust market value despite Ethereum’s distinctive restaking features. He remarked, “Our commitment to Lombard reflects a deep-seated belief in Bitcoin’s potential to catalyze growth across the blockchain sector.”
Currently, Bitcoin (BTC) is trading at $61,185.59, marking a 2.83% decline over the past day and a 1.36% decrease over the past week.
Explore more:
– Buy Bitcoin Guide
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– What is Bitcoin?
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