We’re excited to announce that Osmosis, one of the largest and most active appchains in the Cosmos ecosystem, is integrating the Babylon Bitcoin staking protocol to become a Bitcoin Secured Network (BSN).
This integration follows the launch of Babylon Genesis, the mainnet implementation of Babylon’s trustless, self-custodial Bitcoin staking protocol. Babylon Genesis enables Bitcoin tokens to be used as an economic security layer for Proof of Stake (PoS) systems without relying on bridges, wrapping, or third-party custody.
This marks a major milestone for Babylon Genesis and Osmosis. By becoming a BSN, Osmosis can leverage the Bitcoin network’s robust foundation to foster innovation and create novel avenues for hodlers to earn rewards within the Cosmos ecosystem.
The Osmosis governance vote passed successfully with a 96.57% vote in favor of the proposal to become a BSN on Babylon Genesis. As part of the integration, 50% of trading fees from Bitcoin LSTs and Babylon ecosystem assets on Osmosis will be distributed to BTC and BABY stakers.
Bitcoin Security Meets Interchain Liquidity
Osmosis is an open-source decentralized exchange (DEX) and automated market maker (AMM) protocol built on Cosmos. Osmosis, by integrating the Babylon protocol, will tap into the most secure and decentralized blockchain: Bitcoin.
As a DEX that handles significant liquidity, security is critical. Now, through the Babylon protocol, Osmosis will be secured by native BTC tokens staked directly to its validator set via Babylon’s trustless, self-custodial staking protocol.
This integration allows Bitcoin holders to contribute to Osmosis’ economic security self-custodially. BTC tokens are staked directly from native wallets, and stakers can earn rewards while maintaining full control of their assets.
The result? Stronger chain security, increased participation from Bitcoin holders, and deeper cross-chain value flows into the Osmosis appchain economy.
What are Bitcoin Secured Networks (BSNs)?
BSNs are decentralized networks that leverage the Babylon protocol to use Bitcoin as their security foundation. This is achieved through Bitcoin staking, where users can stake their BTC to support the BSN.
Becoming a BSN offers several advantages:
- Security: Leverage the Babylon Bitcoin staking protocol to use Bitcoin's unparalleled security without intermediaries or bridges.
- Increased decentralization: Inheriting the decentralized nature of Bitcoin, making them more resilient and censorship-resistant.
- Access to liquidity: Tap into Bitcoin's $1.6 trillion liquidity, opening up new opportunities for users and developers.
- Fast finality: The benefit of quicker confirmation time.
What This Means for the Osmosis Ecosystem
This integration strengthens the security model of Osmosis while also opening up a new class of ecosystem participants: Bitcoin holders.
As BTC is staked to Osmosis validators via the Babylon protocol, Osmosis gains increased economic and security backing while BTC holders benefit from access to the rewards that the Cosmos ecosystem offers.
This integration lays the foundation for Bitcoin-secured DeFi on Osmosis. The ability to secure a chain with BTC will open new possibilities for interchain applications and a more resilient decentralized economic infrastructure.
As the Babylon Bitcoin staking protocol continues to expand across chains, Osmosis is showing how Bitcoin can be integrated into the Cosmos ecosystem.
About Osmosis
Osmosis is the premier DEX and DeFi hub for the Cosmos ecosystem and beyond. To date, the Osmosis DEX has facilitated over $40 Billion in trading volume, and more than 100 separate blockchains have connected to the Osmosis appchain via IBC. Osmosis is home to an ever-expanding suite of DeFi applications, merging native tooling with powerful third-party integrations to provide a one-stop experience that raises the bar over centralized exchange offerings.
About Babylon Labs
Babylon Labs focuses on Bitcoin security-sharing protocols with a vision of building a Bitcoin-secured decentralized world. The latest software development is the world's first trustless and self-custodial Bitcoin staking protocol, which enables Bitcoin holders to stake their BTC on other decentralized systems such as PoS chains, L2s, Data Availability (DA) layers, etc, enabling stakers to earn staking rewards without the need for third-party custody, bridge solutions, or wrapping services. The greater idea is to combine the high security and wide adoption of Bitcoin with the efficiency and scalability of PoS systems, increasing Bitcoin's utility.
For more information about Babylon Labs, a developer of the Babylon Bitcoin staking protocol, please visit:
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