Babylon will facilitate Bitcoin staking for users on the Bitrue platform.
Bitrue, one of the oldest and most diversified trading platforms has entered into a partnership designed for its crypto users. According to an X update, Bitrue and Babylon Labs are collaborating to provide a Bitcoin BTC $78 085 24h volatility: 1.4% Market cap: $1.56 T Vol. 24h: $31.22 B staking opportunity for users to earn on-chain rewards.
Unique Staking Opportunity for Bitcoin Holders
According to the post, the nine-day staking opportunity will commence on Monday, December 9.
Bitcoin traditionally does not have native staking as it operates with the Proof-of-Work mechanism. However, Bitrue and Babylon Labs are offering a creative adaptation so that users can stake their Bitcoin and earn rewards.
Notably, participants who stake their Bitcoin on Bitrue during the BTC dual rewards program will receive compensation.
The rewards are twofold – earning Babylon points and earning up to 2.3% Annual Percentage Rate (APR) on the staked BTC. It is possible to redeem the Babylon points for rewards later.
Meanwhile, the 2.3% APR earned on the staked Bitcoin will be added to the participants’ accounts daily. This will provide a more frequent return for those planning to hold their BTC for an extended period of time. This approach could help stakers leverage their current Bitcoin holdings for maximum earnings.
Intending participants can get on board the Babylon Points program via the Bitrue platform. By following certain prompts, they can stake their Bitcoin with a few clicks and it is locked in.
However, interested participants without Bitcoin can trade for some using the platform’s BTC/USDT pair.
Babylon Labs: Bridging Bitcoin and DeFi
The dual reward system was facilitated by the creative team at Babylon Labs. Given that Bitcoin traditionally lacks staking, the team found a way to bring Decentralized Finance (DeFi) to Bitcoin. So, starting on December 9, participants can start earning 2.3% daily on their staked BTC.
Babylon Labs have engaged in this kind of staking in the past. In February, Binance Labs, which is the development arm of Binance, invested in Babylon.
The platform’s staking protocol enables users to stake while eliminating the requirement for native tokens. This allows Bitcoin holders to earn directly without third-party custody.
Similarly, in another collaborative effort with Nomic DAO Foundation, Babylon offered users an opportunity to engage in Bitcoin liquid staking (stBTC). The offer allowed users to leverage their BTC holdings as security on other chains and get compensation in alternative cryptocurrencies.
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