At first I assumed most Bitcoin-in-DeFi talk focuses on the holder. What about the chains that need security?
That's the side of Babylon I find more interesting. New proof-of-stake networks have a hard cold-start problem: their security is only as strong as the value staked, and early on there just isn't much. So they inflate their own token to bribe validators, which dilutes everyone and rarely lasts.
Babylon's pitch to a builder is different tap into Bitcoin's idle capital for economic security, instead of printing your own. If that works, a new chain could borrow real weight from day one.
Big "if," though. It only holds if slashing is actually enforceable and if enough BTC shows up to matter. Unproven demand is still just a whiteboard.
Still, for builders, the problem it targets is very real.
Are the chains you follow secured by native tokens, or would borrowed BTC security change how you trust them?
@BabylonLabs_io $BABY #baby
That's the side of Babylon I find more interesting. New proof-of-stake networks have a hard cold-start problem: their security is only as strong as the value staked, and early on there just isn't much. So they inflate their own token to bribe validators, which dilutes everyone and rarely lasts.
Babylon's pitch to a builder is different tap into Bitcoin's idle capital for economic security, instead of printing your own. If that works, a new chain could borrow real weight from day one.
Big "if," though. It only holds if slashing is actually enforceable and if enough BTC shows up to matter. Unproven demand is still just a whiteboard.
Still, for builders, the problem it targets is very real.
Are the chains you follow secured by native tokens, or would borrowed BTC security change how you trust them?
@BabylonLabs_io $BABY #baby