Bitcoin Staking Protocol SatLayer Goes Live on Babylon Genesis

SatLayer, a Bitcoin staking protocol, has launched Phase I of its Mainnet on Babylon Genesis—the first blockchain to be natively secured by Bitcoin. The move introduces BTC into the DeFi world as a programmable asset, offering both liquidity and security to decentralized applications.

Bitcoin in DeFi

By integrating with Babylon Genesis, SatLayer makes it possible for users to stake Bitcoin as collateral. This opens a new channel for BTC to flow into decentralized markets without the need for traditional bridging solutions or wrapped assets. The protocol aims to broaden Bitcoin’s utility beyond “hodling” and payments—allowing, for example, under-collateralized loans and other advanced DeFi mechanics.

“SatLayer aims to connect the broader ecosystem in a way that enhances security and adoption without requiring a proportional increase in locked capital.”
— Luke Xie, Co-founder of SatLayer

Cube Liquid Staking Solution

SatLayer’s launch aligns with Babylon Genesis’ Cube platform—a liquid staking feature where users can stake the BABY token and receive cBABY, which can be deployed on DeFi protocols like SatLayer or the native DEX Tower. This setup aims to deliver a multiplier effect on yield, as stakers can accumulate multiple reward streams from one set of staked tokens.

$250M BTC Deposited, Expansion Ahead

The protocol already reports $250 million in Bitcoin deposits, indicating early confidence from users and institutions. After establishing itself on Babylon Genesis, SatLayer plans to expand across additional Layer 1 and Layer 2 networks, exploring services such as slashing insurance and on-chain prime brokerage.

Why It Matters

SatLayer Bitcoin Staking marks another leap in bringing the cryptocurrency with the deepest liquidity—Bitcoin—into decentralized finance. By tapping into Bitcoin’s security properties and funneling BTC into various DeFi applications, SatLayer potentially broadens the asset’s use cases and fosters new yield opportunities. This underscores Bitcoin’s evolving role from a static store of value to an active participant in the DeFi ecosystem.