Babylon's 'Eigenlayer' for Bitcoin Starts Yield Generation in Testnet
Babylon, an 'eigenlayer' for Bitcoin, is currently in testnet and will soon start generating actual economic yields. This project, led by Lombard and funded with $18 million by Polychain Capital, aims to create services like PoS chains or sidechains, similar to Ethereum's Eigenlayer.
LBTC, a yield-bearing crosschain token, is at the heart of this operation. It is 1:1 backed by Bitcoin and enables users to earn interest by staking their Bitcoins on other blockchains or providing liquidity to decentralized exchanges. Currently, LBTC is not fully decentralized as users hand over control of their Bitcoins to others. However, Lombard secures these Bitcoins using CubeSigner and aims to decentralize control through a 'consortium'.
LBTC, funded with $16 million and led by Polychain Capital, could become more interesting once Babylon starts generating economic yields. Babylon, Lombard's partner, is also funded with $18 million by Polychain.
In summary, Babylon, an eigenlayer for Bitcoin, is in testnet and will soon start generating economic yields. Its partner, LBTC, enables earning interest on Bitcoin by staking it on other blockchains or providing liquidity. While LBTC is not yet fully decentralized, Lombard is working towards this goal using CubeSigner and a 'consortium'.
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