Sui Network Joins Bitcoin DeFi with Babylon Integration

Sui Network announced its integration with Babylon Labs' Bitcoin staking protocol to tap into Bitcoin’s unrivaled security and liquidity pool.

Bitcoin, the world’s first and most widely recognized cryptocurrency, has long been heralded for its security and decentralization. With a market capitalization surpassing $1.5 trillion, it is the bedrock of the crypto ecosystem. Until now, however, Bitcoin’s utility has largely been confined to its role as a store of value and medium of exchange.

Sui’s integration with Babylon opens the door for Bitcoin to assume an entirely new role—one that secures decentralized applications (dApps) and powers scalable, high-performance networks. With Sui's security model, developers will be able to build decentralized applications while tapping into Bitcoin's extensive liquidity.

What is Babylon? The Key to Bitcoin DeFi

Babylon Labs is the creator of a  Bitcoin staking protocol that enables Bitcoin holders to participate in decentralized finance without losing control of their assets. This protocol transforms Bitcoin from a passive store of value into an active participant in decentralized networks, providing both security and liquidity to blockchain ecosystems like Sui.

The Babylon protocol offers a self-custodial, trustless staking model that allows Bitcoin holders to retain full custody of their BTC while securing decentralized systems. As part of the integration, Bitcoin holders can stake their BTC to help further secure the Sui Network, all while earning staking rewards in return.

A New Economic Primitive: Bitcoin-Backed Scalability

With Babylon’s integration, Sui Network introduces a unique economic model—Bitcoin-backed scalability. By utilizing Bitcoin’s security and liquidity, Sui is able to enhance its blockchain operations, creating new financial applications and decentralized services secured by Bitcoin.

The added layer of Bitcoin-backed scalability means that Bitcoin holders can now use their assets to directly enhance the performance and security of the Sui network.

As Evan Cheng, Co-Founder and CEO of Mysten Labs (a key contributor to Sui), stated:

“This continued partnership is about taking bitcoin’s best traits – size, security, and liquidity – and bringing them into active, high-performance DeFi.”

How Babylon Bitcoin Staking Works

Babylon’s staking protocol allows Bitcoin holders to contribute their BTC to the Sui Network without relinquishing control of their assets. By staking Bitcoin, holders are directly participating in the security of the network, while simultaneously earning rewards. This represents a more sustainable and secure model for DeFi than traditional proof-of-stake systems, which often rely on native token inflation to secure networks.

In addition, Babylon’s protocol is designed to integrate with existing Bitcoin wallets, making it easy for long-term Bitcoin holders to participate in the DeFi space. This opens up new opportunities for Bitcoin holders to safely and securely engage in decentralized finance without the risks associated with centralized exchanges or third-party custodians.

One of the aspects of the Sui-Babylon integration is its ability to enhance cross-chain liquidity. By securing the Sui Network with Bitcoin, Babylon is helping to deepen liquidity across different blockchain ecosystems. 

Benefits for Bitcoin Holders

For Bitcoin holders, the Babylon-Sui integration offers a unique opportunity to extend the utility of their assets. No longer limited to simply being a store of value, Bitcoin can now be actively used to secure and power decentralized applications across the Sui Network.

Moreover, Babylon’s self-custodial staking protocol ensures that Bitcoin holders retain full control of their assets while benefiting from the rewards generated by staking. This makes the protocol a secure and attractive option for long-term Bitcoin investors who are looking for new ways to participate in the DeFi space.

“Together, Babylon and Sui are ​​building the technological foundation for deepening cross-chain liquidity, which can bring more opportunities for rewards to BTC holders who want a secure entrance to DeFi,”  said Fisher Yu, CTO of Babylon Labs.