Persistence adopts Babylon Bitcoin staking for Cosmos restaking
Quote387 words
Explains Persistence adding BTC as a restakable asset via Babylon, extending its LST restaking model. Repeats the 76.1% bonded ratio argument and frames Babylon as EigenLayer for Bitcoin.
Key claims
Core-1 bonded ratio 76.1% versus 67% optimal
Babylon is a cross-chain BTC staking protocol with a control-plane chain
Bitcoin (re)staking is becoming real anon!
The restaking layer of the @Cosmos ecosystem is adopting Bitcoin as an asset within its unique crypto-economic security model.
Stake BTC. Secure Chains. Stay Liquid.
Alpha-🧵
x.com/PersistenceOne/status/1767922128236749106
@PersistenceOne is a IBC-enabled app-specific L1 that is optimized for DeFi apps focused on unlocking the liquidity of (re)staked assets.
Now, it is bringing restaking to the @Cosmos ecosystem.
Restaking is a mechanism where locked tokens, incl. LSTs, are restaked to secure other services & generate additional yield.
Pioneered on Ethereum by @eigencloud, Restaking has rapidly become one of the most dynamic sectors among staked & liquid-staked ETH use cases.
The core principle of restaking is its capacity to enhance the crypto-economic security of decentralized networks and yield of initially staked tokens.
In the world of @Cosmos, the most prominent security consumers are app chains.
However, most chains overpay for their security with high native token inflation.
The @PersistenceOne core-1 chain for example has a 76.1% bonded ratio, much higher than the optimal ratio of 67% (2/3rds) to maintain sufficient security.
So, what if it was possible to leverage XPRT staking rewards to increase chain security and incentivize the liquid staking-based DeFi economy on
@PersistenceOne simultaneously?
Sounds good, right?
That’s what Restaking does.
LSTs like...
✦ stkDYDX
✦ stTIA
✦ stATOM
✦ qATOM
✦ milkTIA
...can be restaked on @PersistenceOne to increase the chain’s economic security while earning Restaking yield from XPRT staking rewards.
Now, @PersistenceOne is adding BTC to the list of supported assets that can be restaked.
How?
@babylon_chain
x.com/zerokn0wledge_/status/1746215641856757918
@babylon_chain is a Cosmos SDK based PoS chain secured by Bitcoin that runs a @CosmWasm execution environment to let devs build secure dApps.
But the vision goes beyond a singular chain.
@babylon_chain proposes a cross-chain Bitcoin staking protocol.
The Bitcoin-staked Babylon chain would not only be secured by Bitcoin but also act as a control plane to synchronize between Bitcoin and other PoS chains that use BTC for security.
This effectively makes @babylon_chain the @eigencloud of the Bitcoin ecosystem and allows for billions of idle BTC capital to be used in securing PoS blockchains
This marks the beginning of a new era in which any crypto asset can be used to secure any chain.
Sounds crazy, right?
If you want to DYOR on @PersistenceOne, check my deep dive below anon! 👇
x.com/zerokn0wledge_/status/1767611711048355972
QUOTING @PersistenceOne
1/ @PersistenceOne 🤝🏼 @babylon_chain Persistence One will adopt #Bitcoin security to strengthen its Liquid Staking & Restaking ecosystem 🛡️ Learn more 👉🏼 blog.persistence.one/2024/03/13/bringing-bitcoin-security-to-persistence-one/ 🧵👇
1/ @PersistenceOne 🤝🏼 @babylon_chain Persistence One will adopt #Bitcoin security to strengthen its Liquid Staking & Restaking ecosystem 🛡️ Learn more 👉🏼 blog.persistence.one/2024/03/13/bringing-bitcoin-security-to-persistence-one/ 🧵👇
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What came next · since 14 Mar 2024
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This breakdown analyzes the project without making a call on the token, so price moves since publication are shown as market context.
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$XPRTPersistence Onesince publication−99.1%−99.2% vs BTC
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