BTC might not have to pick one job anymore.
I always assumed BTC in DeFi was one or the other. stake it and earn rewards.. or lend it out and earn yield. never both, because it's the same coin, it can only be doing one thing.
Babylon's framing on this is that Bitcoin staking and Trustless Bitcoin Vaults (TBV) don't necessarily have to compete for how you use your BTC. you could keep some BTC staked to help secure a PoS network, while using a separate BTC position in TBV to borrow stablecoins, without unwinding the staking position.
that's actually what "capital efficient" means here, not just a better interest rate. it's about reducing idle capital instead of forcing you to constantly switch between strategies.
still not clear to me if the long term vision is for a single BTC position to support both functions, or if it's fundamentally tWo separate BTC positions being bundled into one pitch. those are very different claims dressed up to sound the same.
i want to actually check that once TBV is past testnet, since it decides whether "efficient" here means something real or just sounds good on a slide.
@BabylonLabs_io $BABY #baby
#Bitcoin #DeFi #Babylon $ETH
I always assumed BTC in DeFi was one or the other. stake it and earn rewards.. or lend it out and earn yield. never both, because it's the same coin, it can only be doing one thing.
Babylon's framing on this is that Bitcoin staking and Trustless Bitcoin Vaults (TBV) don't necessarily have to compete for how you use your BTC. you could keep some BTC staked to help secure a PoS network, while using a separate BTC position in TBV to borrow stablecoins, without unwinding the staking position.
that's actually what "capital efficient" means here, not just a better interest rate. it's about reducing idle capital instead of forcing you to constantly switch between strategies.
still not clear to me if the long term vision is for a single BTC position to support both functions, or if it's fundamentally tWo separate BTC positions being bundled into one pitch. those are very different claims dressed up to sound the same.
i want to actually check that once TBV is past testnet, since it decides whether "efficient" here means something real or just sounds good on a slide.
@BabylonLabs_io $BABY #baby
#Bitcoin #DeFi #Babylon $ETH