Bitcoin上的 Decentralized Finance：终于变得有趣了吗？

Foreword

Decentralized Finance (DeFi) on Bitcoin is no longer just a theory. Despite some setbacks, the momentum around unlocking Bitcoin's potential beyond being digital gold is gaining strength.

But to be honest: no one really cares. This is understandable. Because until recently, things have been a bit chaotic.

As Ethereum established a massive DeFi economy, Bitcoin stood on the sidelines, with over $1.5 trillion in liquidity locked in cold wallets. The absence of DeFi smart contracts, a lack of decentralized wrapping/bridging (wBTC), and Bitcoin's identity as digital gold have limited the development around this orange currency ecosystem. However, the situation is changing.

With a new batch of protocols launching on and around Bitcoin, we are witnessing the foundation of a truly BTC-native DeFi stack. Projects like Babylon, Lombard, SatLayer, and Solv Protocol are at the forefront in terms of technology and total locked value (TVL), each addressing different parts of the DeFi Lego.

Babylon: The Staking Layer of Bitcoin

Babylon can be likened to Ethereum's Beacon Chain, but is specifically designed for Bitcoin. It is a native Bitcoin staking protocol with over $5 billion in TVL, making it a pioneer among similar protocols.

The special thing about Babylon is that it allows users to stake BTC directly on the Bitcoin mainnet without the need for bridging or wrapping. The coins remain in place and are stored in a non-custodial manner.

But Babylon is not just about staking for the sake of staking. Its main innovation is extending the security of Bitcoin to other blockchains, whether they are EVM chains, Rollups, or application chains.

Bitcoin holders can now help secure the network by locking up their coins and earn rewards from the chains they protect.

Lombard: The Liquidity Staking of Bitcoin

It is the Lido of Bitcoin. Babylon is responsible for staking; Lombard makes it composable.

Therefore, Lombard has a Bitcoin-related TVL of $1.9 billion, built on Babylon. It allows users to stake BTC through Babylon and receive LBTC, which is a liquid staking token that represents the staked position.

In fact, as we mentioned earlier, the BTC staked through Babylon is still locked on the BTC network. Therefore, without verifying the consensus mechanisms of other networks, they are "useless". They cannot be used for DeFi. This is exactly where Lombard comes in. Now, users can obtain liquid staked BTC (LBTC) and start trading, lending, mining, and all other similar activities.

Lombard earns rewards by delegating BTC to Babylon validators, who in turn protect the external network and receive rewards, as mentioned earlier. These rewards are shared with LBTC holders. In simple terms, the more chains validated by Babylon, the higher the earnings for stakers.

Lombard is active in multiple ecosystems, including Sonic, Sui, and Base, and collaborates with protocols such as Aave, Pendle, Ether.Fi, and Corn, showcasing its composability. It has also played a significant role in the Boyco Berachain liquidity activities, helping to kickstart early TVL.

SatLayer: EigenLayer of Bitcoin

As the title suggests, SatLayer can be imagined as an Eigen Layer built on top of Babylon.

Although its TVL is the lowest on the list at only $340 million, it introduces a new re-staking model. Babylon locks BTC to protect external networks at the consensus layer, while SatLayer allows users to re-stake LBTC to secure the application layer.

This opens the door to the revenue market obtained directly from protected applications, such as an oracle paying restakers to ensure data integrity, or a Rollup paying restakers to ensure transaction validity, or a bridge paying to avoid slashing or fraud.

SatLayer supports re-staking on EVM and Sui networks.

Do you see the whole picture now?

• Babylon serves as the base layer, providing consensus for the network;
• Lombard as liquidity staking, unlocking the locked Babylon BTC;
• SatLayer provides re-staking, offering economic security guarantees for the application layer.

Are the similarities with Ethereum, Lido, and Eigen Layer starting to emerge?

However, it is important to note that Lombard and SatLayer currently rely on Babylon, but not vice versa.

SatLayer does not necessarily rely on Lombard, although given its decentralized nature, Lombard is currently the only solution it utilizes.

Solv Protocol: BTC Reserves and DeFi Vault

The Solv protocol has a TVL of $524.27 million in the BTC ecosystem, employing different methods.

Similar to Lombard, it provides liquidity staking for BTC, but does not rely on Babylon and focuses on building its own Bitcoin reserve strategy and other DeFi products.

In fact, the SolvBTC token is the liquidity representation of its BTC reserve strategy, where users deposit wrapped versions of BTC, and then Solv converts most of it to native BTC through institutional channels and stores it via centralized custody.

Although Solv does not rely on Babylon, it benefits from Babylon-related assets such as LBTC. In turn, thanks to its DeFI vault, it provides higher composability.

Conclusion

DeFi on Bitcoin is no longer just a dreamer's fantasy. With the emergence of new protocols and the enhancement of liquidity, we may be witnessing a new era of decentralized yield on Bitcoin.

This is no longer just about wrapping BTC on Ethereum, but rather unlocking native BTC DeFi.

As more projects like Botanix launch EVM-compatible Bitcoin blockchains, the composability and potential value of these layers may soar. Billions of idle BTC could soon become active collateral, helping to validate networks, secure applications, and generate real yields.

Institutional investors are flocking to Bitcoin, as they like the returns.