Innovation

Pioneering the Future of Staking: Nomic DAO Integrates Bitcoin Protocol from Babylon

GEORGE TOWN, Cayman Islands, April 10, 2024 – In a landmark announcement, the Nomic DAO Foundation has unveiled its strategic plan to incorporate Babylon's avant-garde Bitcoin staking protocol within its decentralized, non-custodial Bitcoin bridge. This venture heralds the arrival of stBTC, an innovative Bitcoin Liquid Staking Token (LST), set to transform the realm of cryptocurrency staking. Additionally, Nomic DAO Foundation is advancing its security solutions by rolling out a dual-stake mechanism anchored by both staked BTC and staked NOM, the proprietary token of Nomic.

Liquid Staking Tokens (LSTs) have surged in popularity in the volatile world of cryptocurrencies, particularly within the decentralized finance sector—boasting a staggering total value locked exceeding $50 billion, according to DefiLlama. LSTs empower users to stake their digital assets and concurrently maintain liquidity. Renowned examples such as stETH allow Ethereum holders to accrue yields without jeopardizing asset flexibility. By adapting Babylon's Bitcoin staking protocol, the newly-minted stBTC offers Bitcoin investors analogous benefits within the burgeoning Cosmos ecosystem, assuring yield gains alongside liquidity leverage for staked Bitcoin within IBC-compliant DeFi protocols.

Traditional staking methods tether BTC to a UTXO, temporarily forestalling its transferability. Nomic's innovative decentralized BTC reserve introduces a dynamic alternative, permitting the exchange of BTC for nBTC tokens that traverse freely across any IBC-compatible blockchain. Participants in the Nomic Staking Pool have the privilege of locking their nBTC to create an equivalent quantum of stBTC tokens. These tokens, mirroring nBTC, circulate within the Cosmos ecosystem. The stBTC redemption process unfurls by releasing tokens, granting an exchange for BTC or nBTC, and stakers are rewarded periodically through IBC Interchain Account transactions, bolstering the incentive to engage in staking.

The integration of Babylon's pioneering technologies is not only strengthening Nomic's security architecture but also offers Bitcoin enthusiasts an additional channel to stake their Bitcoin for a yield. Notably, Nomic stands among the first Proof of Stake (PoS) chains to adopt the Bitcoin staking solution from Babylon, heralding a dual-secured system by staked NOM and BTC. For users who commit their Bitcoin to the Babylon-nurtured system within Nomic, they will reap rewards in both NOM and nBTC, convertible to BTC—a distinctive advantage of the Nomic platform.

"Nomic and Babylon constitute critical building blocks for Bitcoin by providing decentralized custody and staking," proclaimed Matt Bell, CEO of Turbofish, the driving force and core contributor behind Nomic. "The synergy of these technologies amplifies their utility, presenting a pragmatic yield-earning staking solution for the average Bitcoin holder. With the likes of stBTC making their debut, Bitcoin's foothold in the DeFi landscape is set to rival the trading volumes and locked-in values attributed to Ethereum-based DeFi," Bell elaborated on the transformative impact of this partnership.

David Tse, Co-founder of Babylon, expressed excitement over the role of Babylon's Bitcoin staking protocol in Nomic's latest endeavor to launch stBTC. Tse sees this as a significant leap for Bitcoin holders, expanding their capabilities to engage with DeFi applications while still bolstering the security of PoS systems through their staked Bitcoin.

Anticipation is high as stBTC is currently active in the testnet phase, allowing users to thoroughly test the functionalities and benefits before its grand debut on the mainnet.

About Nomic DAO Foundation

The Nomic DAO Foundation is a non-commercial entity committed to fostering the growth and development of the Nomic ecosystem. The Foundation is instrumental in supporting the core mission and objectives of the decentralized autonomous organization, the Nomic DAO. Taking on the role of initial custodian of the Nomic blockchain, the Foundation seeks to nurture and scale the Nomic DAO until it stands independently and self-sufficiently.

About Nomic

Nomic blockchain is a ground-breaking technology providing users with a decentralized, non-custodial Bitcoin bridge. Developed atop Turbofish's Orga, a bespoke high-performance blockchain application framework, Nomic harnesses the IBC protocol to ensure a secure and efficient bridging experience for your BTC into the Cosmos realm, making it accessible on any IBC-enabled chain.

About Babylon

Founded in 2022 by Stanford Professor David Tse, along with Dr. Fisher Yu, Babylon is a blockchain venture dedicated to designing security sharing protocols tailored for the decentralized economy. Professor Tse, a luminary in the field of engineering, is a proud member of the U.S. Academy of Engineering. His contributions span from inventing the groundbreaking proportional-fair scheduling algorithm, pivotal in wireless communications, to earning accolades like the IEEE Claude E. Shannon Award and the IEEE Richard W. Hamming Medal. Babylon's team is composed of esteemed consensus protocol researchers and skilled Layer 1 engineers from across the globe.

Babylon's mission targets the expansion of Bitcoin's use as a foundational security layer for the decentralized economy. Three distinct arms of Bitcoin form the cornerstone of Babylon’s mission: its asset value, a robust timestamping service, and the provision of the world's most censorship-resistant blockspace. To maximize these components, Babylon is pioneering a triad of security-sharing protocols: the Bitcoin Staking Protocol, Bitcoin Timestamping Protocol, and Bitcoin Data Availability Protocol. These groundbreaking efforts lay the framework for Babylon's vision of a secure and decentralized future, further solidifying Bitcoin's position as an indomitable force within the global cryptocurrency landscape.

stBTC: Bridging Liquidity and Security

The stBTC token is positioned to break barriers in the cryptocurrency space by offering a bridge between liquidity and security. Providing a novel approach to engaging with decentralized finance, this technological marvel reflects Nomic's commitment to accelerating Bitcoin's integration into the wider cosmos of DeFi applications. The alchemy of Nomic's visionary bridge and Babylon's staking protocol culminates in the creation of stBTC, establishing a vanguard in the world of Bitcoin staking.

Future-Proofing Crypto with Dual-Security

The introduction of dual-stake security by Nomic signals a paradigm shift in the protection of cryptographic assets. With the foundational support of staked Bitcoin and its native NOM token, Nomic ushers in a new era of reinforced digital security. Investors and cryptocurrency aficionados can now enjoy what could be coined a symbiotic safety net, fostering confidence and trust within the digital asset community.

Expert Visionaries at the Helm

The genesis of Babylon under the aegis of intellectual giants like Professor David Tse and Dr. Fisher Yu sets a benchmark in blockchain innovation. Babylon's project, steered by a consortium of top-tier consensus researchers and accomplished Layer 1 engineers, aligns with Tse's acclaimed academic and professional prowess, ensuring the project's stature and potential for profound industry impact.

Driving Innovation and Accessibility in Crypto Staking

The bold strides made by Nomic and Babylon together underscore a resolute push towards enhancing the cryptocurrency staking experience. The pioneering spirit embodied in the testnet launch of stBTC illustrates a commitment to user empowerment, democratizing access to yield-earning opportunities, and nurturing a robust DeFi ecosystem that can rival the most established platforms.

Conclusion

The Nomic DAO Foundation's collaboration with Babylon marks not only a significant technical achievement but also a defining moment in the evolution of cryptocurrency usability and security. This partnership reflects a dedication to inventiveness and excellence, with both entities carving out an indelible imprint on the annals of digital finance. As the crypto community eagerly awaits the public release of stBTC, the foundation is laid for a far-reaching and vibrant era of decentralized finance.

Registrants eager to explore the capabilities of stBTC can engage with the testnet, a precursor to the platform-wide mainnet implementation designed to revolutionize liquid staking as we know it. The Nomic DAO Foundation continues to curate resources and refine the robust infrastructure to ensure a seamless transition to this cutting-edge mode of cryptocurrency staking.

For more information, users can stay updated on the latest developments by visiting the official websites for Nomic and Babylon, where comprehensive details on the staking processes and integration are readily available. The collective efforts of Nomic and Babylon may very well pave the way for a future-proofed crypto financial framework, empowering users to partake in innovative staking mechanisms with unprecedented security and flexibility.

Sources: Nomic DAO Foundation