BOB Announces Integration with Babylon to Bring Bitcoin Finality to Hybrid L2 Model
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BOB Announces Integration with Babylon to Bring Bitcoin Finality to Hybrid L2 Model
Both parties will jointly create a more secure, low-barrier, and user-friendly channel for users to participate in Bitcoin staking, promoting the development of the Bitcoin staking ecosystem.
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On December 18, hybrid Layer-2 project BOB (Build on Bitcoin) announced a collaboration with the Bitcoin staking protocol Babylon. The two parties will leverage their respective strengths to integrate Bitcoin's security network, bringing Bitcoin Finality into BOB’s hybrid L2 network.
By integrating with the Babylon protocol, BOB will build a globally leading Bitcoin Security Network (BSN). Together, they aim to create a more secure, accessible, and user-friendly channel for participating in Bitcoin staking, advancing the development of the Bitcoin staking ecosystem. This partnership delivers a novel staking experience that connects Bitcoin and BOB’s powerful hybrid L2 network, ultimately unlocking the $500 billion potential of the Bitcoin staking market. This marks a key step in BOB’s roadmap Phase Two, set to officially launch in early 2025.
BOB is a hybrid Layer-2 platform combining Bitcoin's security with Ethereum’s smart contract flexibility, supporting ecosystems such as Ordinals, Lightning, and Nostr. It aims to enhance Bitcoin’s utility and expand its functionality. BOB’s vision is to ensure security via BTC L1—the most secure base layer—and use this foundation to create trust-minimized bridges connecting BTC, ETH, and other L1 blockchains. As such, Hybrid L2 achieves interoperability without relying on third-party bridging tools, while solving the issue of fragmented BTC liquidity across multiple chains.
Leveraging Hybrid L2’s leading liquidity aggregation products and technology, BOB has been committed to driving mass adoption of liquid staking tokens (LSTs) for BTC, unlocking untapped BTC liquidity potential for the DeFi ecosystem. BOB believes DeFi on Bitcoin holds greater long-term potential and emphasizes BTC’s irreplaceable role as a pillar of future DeFi. Notably, BOB has contributed over $200 million in TVL to the Bitcoin staking ecosystem, including Babylon LST assets supported by platforms like Solv, Bedrock, and PumpBTC. Additionally, BOB’s one-click Bitcoin staking product—BOB Stake—enables millions of users to easily obtain Babylon LST assets through integration with third-party staking service providers such as Staking Rewards, XverseEarn, and Everstake, requiring only a single transaction on the Bitcoin network.
To further support the new positioning of the BOB Bitcoin Security Network (BSN), Lombard has announced the introduction of LBTC onto the BOB network. LBTC is the largest Bitcoin LST asset, with a TVL of approximately $1.5 billion, 80% of which is actively deployed in DeFi. BOB will become the fourth native deployment network for LBTC, following Ethereum, Base, and BNB Chain.
In addition, BOB announced that starting today, extra Babylon points from staking Bitcoin LST assets will be distributed to BOB users over the next 45 days, offering a direct avenue for users to earn substantial Babylon points beyond official Babylon staking participation.
Alexei Zamyatin, Co-founder of BOB and core contributor to BitVM, said: “Integrating Bitcoin Finality into BOB’s hybrid L2 model via Babylon is a natural fit, combining the best of Bitcoin and Ethereum within a single platform. LST assets based on Babylon have already made significant contributions to BOB’s DeFi TVL. Furthermore, BOB will also integrate Lombard’s LBTC. This collaboration strengthens our commitment to making BOB the ‘Home of BTC DeFi.’ The Bitcoin staking ecosystem holds immense potential—currently, DeFi accounts for only 0.1% of BTC’s market cap compared to 30% for ETH.”
The Babylon platform enables secure staking without requiring users to transfer their Bitcoin out of their own wallets. This allows Bitcoin holders to stake without bridging to PoS chains or resorting to wrapping or custodial solutions. It preserves Bitcoin’s inherent security while enabling holders to earn yield on their assets. With the recent launch of Babylon Cap-3 mainnet staking, Babylon has once again demonstrated surging demand in Bitcoin staking. On December 17, Babylon Cap-3 staking officially concluded, with over $6 billion worth of BTC staked.
Fisher Yu, CTO of Babylon Labs, stated: “We are excited to support BOB in becoming a Bitcoin Security Network. Integrating Babylon LST assets into BOB’s hybrid L2 model lays the foundation for both parties to jointly build a robust Bitcoin DeFi ecosystem. This integration represents a crucial step toward realizing our shared vision of a secure, decentralized world powered by Bitcoin.”
This integration between BOB and Babylon follows the release of the BOB Hybrid L2 Vision Paper, which outlines BOB’s strategic role in positioning Bitcoin as a cornerstone of DeFi. Phase Two of the Hybrid L2 vision includes adding Bitcoin Finality—now provided by Babylon—alongside launching a trust-minimized Bitcoin bridge powered by BitVM (expected to release a testnet in Q1 2025). This will enable BOB to combine Bitcoin’s security with Ethereum’s innovation, delivering a richer on-chain ecosystem for developers and users alike.
Learn more: Visit gobob.xyz.
About BOB (Build on Bitcoin)
BOB (Build on Bitcoin) is a hybrid Layer-2 network that combines the strengths of Bitcoin and Ethereum, aiming to become the “Home of BTC DeFi.” Its unique Hybrid L2 model integrates the advantages of both ecosystems—Bitcoin’s security and dormant BTC capital, along with Ethereum’s DeFi innovation and versatility. By positioning BTC as the foundation of a new decentralized financial system, BOB unlocks novel use cases and trillions in BTC liquidity. Using the BitVM protocol, BOB inherits Bitcoin’s security perfectly and creates trust-minimized bridges among BOB, Bitcoin, Ethereum, and other L1 networks. As such, Hybrid L2 achieves interoperability without relying on third-party cross-chain bridges, consolidating liquidity around the Bitcoin network rather than fragmenting it across chains.
BOB is backed by leading investment firms including Castle Island Ventures, Coinbase Ventures, Ledger Cathay Ventures, and IOSG.
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About Babylon
Babylon is a project designing a Bitcoin security-sharing protocol aimed at building a decentralized world secured by Bitcoin. Its latest innovation is the world’s first trustless and self-custodial Bitcoin staking protocol, allowing Bitcoin holders to stake their BTC on proof-of-stake (PoS) systems—such as PoS chains, L2s, and data availability (DA) layers—to earn yield, all without third-party custody, cross-chain bridges, or wrapping services. Babylon’s approach combines Bitcoin’s high security and widespread adoption with the efficiency and scalability of PoS systems, significantly enhancing Bitcoin’s utility. Founded in 2022 by Stanford professor David Tse and Dr. Fisher Yu, Babylon is led by a global team of consensus protocol researchers and experienced L1 blockchain engineers. Professor Tse is a member of the U.S. National Academy of Engineering, renowned for inventing the legendary proportional fair scheduling algorithm.
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