Babylon claims breakthrough in using native Bitcoin collateral in DeFi: Finance Redefined
Babylon Labs developed a system allowing native Bitcoin to be trustlessly used as collateral for Ethereum loans.Summary
Bitcoin infrastructure company Babylon Labs announced a breakthrough, developing a proof-of-concept that enables native Bitcoin to be used "trustlessly" as collateral for borrowing assets on Ethereum. This system, detailed in a white paper, utilizes a Bitcoin trustless vault system leveraging Bitcoin smart contract verification (BitVM3) to lock BTC in per-user vaults. Withdrawals are governed by proofs of external smart contract states verified on the Bitcoin network. This innovation allows users to secure their Bitcoin and utilize it in Ethereum DeFi without needing a custodian or a traditional bridge. The article also briefly mentions other DeFi news, including record user activity on BNB Chain, Hyperliquid allowing permissionless deployment of perpetual futures, and Uniswap adding Solana support to its web app.
(Source：Cointelegraph)