Bitcoin recovery comes to Sui with SatLayer integration

SatLayer, a Bitcoin recovery platform, announced on Wednesday that it will extend the use of Bitcoin in decentralized finance to Sui, the fast Layer 1 blockchain launched last year.

With Sui focus on fast transaction speeds, the SatLayer integration will allow developers to take advantage Bitcoin $2.1 trillion construction footprint DeFi applications, which aim to exclude third parties from transactions in areas such as commerce and lending, SatLayer said in a statement.

The Sui network already hosts a budding DeFi ecosystem. In 2024, 150 full-time developers will work at Sui, according to a recent report from the venture company Electric Capital.

Looking to provide greater flexibility, said Sui Foundation global ecosystem director Jameel Khalfan. Decipher The introduction of SatLayer could expand the set of tools that developers have at their disposal.

“Combining the size and security of Bitcoin with the speed and scalability of Sui offers developers and users new possibilities for building on top of Bitcoin,” he said.

SatLayer’s integration with Sui will allow developers to secure decentralized applications with Bitcoin at layer 1, but SatLayer itself is implemented in Babylon. Babylon aims to provide security to proof-of-stake networks by offering users a return for locking up their Bitcoin.

Last month, SatLayer introduced a “alliance” with Babylon Labs, positioning its recovery platform as a way to expand the use of Babylon to provide security, with a focus on decentralized applications and infrastructure, such as bridges, rather than just proof-of-stake networks.

The project also said that SatLayer’s integration with Babylon brings “fully programmable clipping” to the staking protocol. On recovery platforms like SatLayer, curtailment refers to the penalties validators face when they act maliciously or negligently.

The design of Babylon resembles a bilateral market where users can lock their Bitcoin in exchange for rewards, while proof-of-stake networks leverage that capital to provide security.

While the project is still in its early phases, 57,300 BTC worth $6 billion have been pledged to Babylon Chain so far, according to a panel created by Babylon laboratories.

Last year, EigenLayer popularized restore, an Ethereum-centric protocol that effectively allows users remortgage your Ethereum staked for additional yield elsewhere. In this sense, SatLayer parallels the main use case of EigenLayer while focusing on Bitcoin.

Earlier this month, Binance said it would support Babylon’s participation through its “Onchain Returns” product. Being under the Binance Earn umbrella, the company noted that the supported protocols are varied. describing On-chain returns as a high-risk product.

Babylon raised $70 million in a May funding round led by venture capital firm Paradigm, in which Galaxy participated, according to data from CryptoRank. SatLayer meanwhile went up $8 million in an August funding round, in which Franklin Templeton participated.

Edited by Sebastián Sinclair.