I came across Babylon and honestly had to pause at “Bitcoin staking.” Bitcoin doesn’t even use proof of stake, so I wanted to understand what was really happening.
The interesting part is that BTC stays on the Bitcoin network. It’s locked using native Bitcoin scripts and delegated to help secure other networks—without wrapping or bridging it.
Babylon is now testing Bitcoin-backed borrowing with Aave V4, while BABY is used for staking, fees and governance. It’s still early, and I have questions about slashing, withdrawal delays and actual demand. But the idea is unusual enough that I’ll be checking back to see how it develops.