SatLayer and Sui announce collaboration to kickstart BTCfi

SatLayer, a leading Bitcoin ( BTC ) restaking platform, and Sui, a prominent Layer 1 blockchain, have announced a strategic partnership to advance Bitcoin DeFi (BTCfi) by integrating Bitcoin’s liquidity and security into the Sui ecosystem, as learned by Finbold on Wednesday, December 18. What happens when Bitcoin’s unmatched security meets Sui’s high-speed innovation? With SatLayer, @babylonlabs_io , and @suinetwork joining forces, the future of BTCFi is growing. This isn’t just staking and restaking. It’s unlocking Bitcoin’s liquidity and security to power the… pic.twitter.com/NdIinRV3Uc — SatLayer (@satlayer) December 18, 2024 The collaboration aims to create new ways for blockchain developers and users to interact with the most popular cryptocurrency asset by providing the means for new decentralized apps (dApps) and infrastructure. The benefits of BTCfi SatLayer, Babylon’s designated restaking partner, strives to utilize BTC’s substantial liquidity, capital efficiency, and security for other systems like bridges, decentralized exchanges, and oracles. Using smart contracts on the Babylon Chain, SatLayer allows for fully programmable slashing with minimal trust assumptions. This effort should bring Bitcoin restaking features on par with Ethereum ( ETH ). In addition to this project, SatLayer will join forces on other major Sui projects, such as Navi, Suilend, Aftermath, Cetus, and Ika, to improve the utility of BVSes and Bitcoin on the wider Move developer ecosystem. Jameel Khalfan, Global Head of Ecosystem at Sui Foundation, expressed excitement with the collaboration: ‘Sui’s move into Bitcoin DeFi points to Sui Foundation’s commitment to be a destination for BTCfi. The combination of Bitcoin’s size and security with Sui’s speed and scalability gives developers and users new possibilities to build on Bitcoin. We couldn’t be more excited.’ Luke Xie, the co-founder and CEO of SatLayer, also commented on the benefits of this partnership: ‘Sui is the perfect Layer 1 blockchain to utilize Bitcoin’s unmatched security and liquidity. Starting with Bitcoin restaking and expanding into BTC liquidity for applications and infrastructure, this collaboration opens up incredible possibilities for Sui’s builders and users.’ The joint effort for BTCfi SatLayer and its partners Lombard Finance and Lorenzo Protocol intend to leverage Bitcoin liquid staking tokens (LSTs) to boost liquidity and capital efficiency for Sui’s ecosystem. Among other projects, they also aim to introduce liquid restaking tokens (LRTs), further tapping into Bitcoin’s liquidity and security for BTCfi. Sharing the positive sentiment, Fisher Yu, the CTO of Babylon Labs said: ‘We’re excited to play a key role in bringing Bitcoin to Sui. By combining Babylon Bitcoin staking with SatLayer’s restaking framework, the Sui ecosystem now has the building blocks for a powerful onchain Bitcoin DeFi ecosystem. It is a big step towards our vision of a Bitcoin-secured decentralized world.’ SatLayer’s integration puts Sui and its BTCfi capabilities in the prime spot after Babylon, Lombard Finance, and Cubist teamed up to launch Bitcoin staking on the quickly emerging L1 network. The post SatLayer and Sui announce collaboration to kickstart BTCfi appeared first on Finbold .