Bitaigen Research We have compiled the core mechanisms and latest developments of the eight major liquid‑staking protocols within the Babylon ecosystem, and provided a horizontal comparison of their TVL contributions to help readers quickly identify the current liquidity leaders. By analyzing the positioning of key projects such as Bedrock, this article offers investors interested in Bitcoin cross‑chain staking a clear panoramic view and is worth a careful read.
Who Is the TVL Leader? A Survey of the Eight Babylon Liquid‑Staking Protocols
This piece systematically outlines the eight liquid‑staking protocols operating in the Babylon ecosystem and compares their TVL figures.
The TVL leader is Bedrock (uniBTC), which has delegated roughly 297.8 BTC in the first phase of Babylon main‑net staking, accounting for about 30 % of the total TVL.
Babylon, by self‑custody of assets and sharing Bitcoin’s security with Proof‑of‑Stake (PoS) chains while earning staking rewards, has become the core narrative of Bitcoin‑earning staking. Since the launch of phase 1 on August 22, the network hit the 1,000 BTC cap in just seven blocks, causing gas fees to surge to thousands of satoshis per byte. The liquid‑staking protocols that emerged around Babylon give retail participants a convenient entry point, further unlocking liquidity on top of Bitcoin and expanding sources of yield.
Below we introduce each of the eight protocols, covering their core features, the most recent progress, and their TVL contributions.
Lombard (LBTC)
- Founded: April 2024
- Funding: Completed a $16 million seed round on July 2 2024, led by Polychain with participation from Foresight Ventures, OKX Ventures, Robot Ventures, Babylon and others.
- Core mechanism: Users deposit BTC to stake on Babylon, after which a 1:1 LBTC token is minted on the Ethereum chain for use in DeFi. Future plans include expansion to Solana, Cosmos and additional ecosystems.
- Security: Utilises a “secure alliance” model together with the non‑custodial key‑management platform CubeSigner.
- Latest updates: After a whitelist deposit test on August 21, the protocol held back direct BTC staking into Babylon due to intense competition on the main net. On September 3 it launched a public test version that allows any user to deposit BTC and receive LBTC.
- On‑chain data: According to Dune Analytics, the LBTC supply has surpassed 4,400.3958 tokens, held across 4,443 addresses.
Bedrock (uniBTC)
- Founders: PoS node service provider Rock X
- Funding: Closed a round on May 2 2024 led by OKX Ventures, LongHash Ventures and Comma 3 Ventures (amount undisclosed).
- Multi‑asset support: Currently offers liquid staking on Ethereum (uniETH), Bitcoin (uniBTC) and IOTeX (uniIOTX) chains.
- Staking methods:
- Proxy staking – Users stake wBTC on Ethereum; a third party then stakes an equivalent amount of BTC on Babylon.
- Conversion staking – With a single click, wBTC is swapped for BTC and directly staked on Babylon.
- Security design: By partnering with third‑party custodians and employing external verification, the protocol separates staking rights from transfer rights.
- TVL contribution: The largest delegator in Babylon’s phase‑1 main‑net, contributing roughly 297.8 BTC, or about 30 % of total TVL.
- Token details: More than 501 uniBTC tokens have been minted; a Cap 2 pre‑staking round is underway. If total staking reaches 800 BTC, a special reward pool will be unlocked.
PumpBTC (pumpBTC)
- Founded: 2024; no public funding information available.
- Staking assets: Supports WBTC, BTCB and FBTC, issuing a 1:1 pumpBTC token to participants.
- Revenue source: Custodians such as Cobo and Coincover forward equivalent BTC to Babylon; the resulting yield is denominated in pumpBTC.
- Incentive model: Points rewards combined with a team‑building mechanic; holding pumpBTC earns points, and staking ≥ 0.02 BTC makes a user a “team leader” who can invite others for additional point bonuses.
- TVL contribution: Approximately 118.4288 BTC delegated, representing 11.8 % of the overall TVL.
- On‑chain data: Dune shows a total pumpBTC supply of 349.31480504 tokens, spread across 2,333 staking addresses.
Lorenzo Protocol (stBTC)
- Funding: Completed a financing round on October 4 2022 with participation from Binance Labs (amount undisclosed). *U.S. users should access Binance‑related services through Binance.US, not the global platform.*
- Core model: Separates principal and interest by issuing LST tokens; users stake BTC or BTCB to receive a 1:1 stBTC (liquidity‑principal token), while staking rewards are settled in YAT (interest‑accumulation token).
- Staking Agents: A consortium of trusted Bitcoin institutions and traditional financial giants acts as the sole Staking Agent.
- TVL contribution: Roughly 129.36 BTC delegated, accounting for 12.9 % of total TVL.
- Pre‑staking progress: Caps 1 and 2 together have already amassed over 507 BTC.
Solv Protocol (solvBTC.BBN)
- Funding size: Over $11 million cumulative, with investors including IOSG Ventures, Binance Labs, Blockchain Capital and others.
- Product positioning: A decentralized Bitcoin reserve protocol that swaps multi‑chain assets for a yield‑bearing token solvBTC, and enables cross‑chain staking through solvBTC.BBN.
- Custody partners: Collaborates with third‑party custodians such as Ceffu to ensure asset safety.
- TVL contribution: In Babylon’s phase‑1 main‑net, delegated 250 BTC, representing 25 % of the total and covering all gas costs.
- On‑chain data: The team estimates that more than 3,230 solvBTC.BBN tokens have been minted.
pSTAKE Finance (yBTC)
- Funding: Over $20 million raised to date, with backers including Galaxy Digital, DeFiance Capital, Binance Labs and others.
- Launch roadmap: Announced on July 29 that a Bitcoin liquid‑staking solution would debut on Babylon, capping deposits at 50 BTC; a parallel yBTC token on Ethereum is slated for September.
- Pre‑staking activity: On August 27, Cap 2 opened, raising the deposit ceiling to 150 BTC with a minimum of 0.005 BTC per user; Cobo provides custodial security.
- TVL contribution: About 10 BTC delegated, roughly 1 % of the total, while the overall Bitcoin staking volume across Babylon sits at approximately 101 BTC.
Chakra
- Funding: Completed a financing round on April 26 2024 with participation from ABCDE Capital, Bixin Ventures, StarkWare (amount undisclosed).
- Technical features: A zero‑knowledge (ZK) proof‑based re‑staking protocol that builds a modular BTC settlement network.
- Staking pool: Synchronized with the Babylon main‑net; users stake BTC to Chakra, which automatically forwards the stake to Babylon, earning dual rewards—Babylon staking rewards plus Chakra’s native Prana token.
- Security guarantees: Multi‑signature vault managed jointly by Chakra, Cobo and other entities.
- TVL status: No BTC has yet been delegated to Babylon through Chakra; current total staked amount stands at 25.75984 BTC.
SatLayer
- Positioning: A liquidity re‑staking platform built on Babylon that offers Bitcoin Validation Services (BVS), providing a security layer for any dApp or protocol.
- Funding: Closed an $8 million pre‑seed round on August 22, led by Hack VC and Castle Island Ventures, with participation from OKX Ventures, Mirana Ventures, Amber Group and others.
- Staking assets: Supports wBTC and all liquid‑staking tokens within the Babylon ecosystem (LBTC, pumpBTC, SolvBTC). Rewards are distributed as SatLayer points.
- Activity overview: Launched its first‑season deposit campaign on August 23 with a 100 BTC quota; the two‑week campaign was oversubscribed, accumulating 132.54 BTC in stakes, of which 75 % consists of uniBTC.
The above constitutes the Babylon Eight‑Protocol Liquid‑Staking Survey compiled by the Bitaigen editorial team for your reference. We wish you a smooth experience navigating the Bitcoin staking ecosystem!
*Note: Crypto gains may be taxable in your local jurisdiction; please consult a qualified tax professional.*
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