Nexus Mutual to provide insurance coverage for Babylon's Bitcoin staking layer
Quick Take
Crypto insurance provider Nexus Mutual is developing a slashing protection product for Bitcoin-based Babylonās proof-of-stake mechanism.
The coverage will offer individual stakers and institutions slashing protection, āoffering bitcoin holders a way to participate in staking with greater peace of mind.ā
Crypto insurance provider Nexus Mutual is developing a slashing protection product for Bitcoin-basedĀ BabylonĀ
$SOL #BB ABYĀ +5.71%ļæ¼
ās proof-of-stake mechanism. Babylon Labs is advising the development, though not participating directly in the cover products.Ā Ā
The companies say there will be several cover options ātailored to all of the different participantsā on the Babylon network, including individual stakers and institutions.Ā
Babylon is a so-called āBitcoin Secured Network,ā i.e. a network that relies on Bitcoinās proof-of-stake security model to power a more flexible proof-of-stake system that can support smart contracts. The protocol, which began rolling out itsĀ āGenesisā mainnetĀ earlier this month, pays stakers to lock up funds used as economic security.Ā
Proof-of-stake systems rely on a process called āslashingā as a penalty mechanism that confiscates a portion of a validator's staked tokens for malicious or negligent behavior, like double-signing or being offline. While the process is designed to improve staking participation, theoretically, slashing itself has failure models.Ā
āWeāre excited about Nexus Mutualās upcoming slashing protection product and what it could mean for Bitcoin stakers,ā said Clayton Menzel, head of BD at Babylon, said in a statement. āThis collaboration supports our mission of unlocking bitcoin to secure the decentralized economy, offering bitcoin holders a way to participate in staking with greater peace of mind.ā
#BinanceHODLerSIGN $BNB