<aside> <img src="/icons/brain_gray.svg" alt="/icons/brain_gray.svg" width="40px" /> Bitcoin’s Premier Liquid Staking Strategy Layer: Maximal Yield with Minimal Risk
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[Website](<http://bqlabs.xyz>)
[Docs](<http://docs.bqlabs.xyz>)
BTC | Liquid Staking | Staking Insurance Protocol | Strategy Manager | Decentralized Vault
BQLabs is building Bitcoin’s Liquid Staking Strategy Layer. Extending the Liquid Staking Experience, we allow Bitcoin investors to stake their idle bitcoin through our intelligent Strategy Manager, accruing maximum yield on their staked asset while having the option of hedging the associated slashing risks with BTC’s first ever Staking Insurance Protocol. We foresee a future where Bitcoin takes its rightful seat at the 🫀 of the DeFi landscape, offering customizable strategies with optimised returns and tailored risk management. Vires in numeris.
<aside> <img src="https://prod-files-secure.s3.us-west-2.amazonaws.com/0850d5bf-0eb6-4ddb-91f0-f4c7283dc93e/6701b7e1-a686-483f-982d-190687866532/Unknown-2.jpg.png" alt="https://prod-files-secure.s3.us-west-2.amazonaws.com/0850d5bf-0eb6-4ddb-91f0-f4c7283dc93e/6701b7e1-a686-483f-982d-190687866532/Unknown-2.jpg.png" width="40px" /> Underutilized Store of Value
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Bitcoin, the brainchild of Satoshi Nakamoto, revolutionised the financial landscape by establishing a decentralized store of value - growing into a $1.3T asset class.
At the same time, Ethereum transitioned from PoW to PoS consensus - also paving the way for multiple other PoS ecosystems. While PoW chains were secured by work, PoS chains were secured by capital. Bitcoin, the oldest & most decentralized blockchain, with significantly less volatility compared to newer semi-centralized projects - was the most ideal source for this capital.
But most of this was still idle because any yield generating DeFi activities required bridging to other chains/relinquishing custody - which is generally considered too risky for the investors. For context, wBTC - the largest wrapped BTC asset as of writing this proposal, still has a market cap of ~$10b - a fraction of a percent of total Bitcoin market cap. This created a quandary - how could this idle Bitcoin be leveraged trustlessly to service the PoS chains with economic security?
<aside> <img src="/icons/water_blue.svg" alt="/icons/water_blue.svg" width="40px" /> Awakening the sleeping giant of DeFi
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Following the success of EigenLayer with its Ethereum Restaking, Babylon stepped in with their groundbreaking innovation, the Bitcoin Staking Protocol.
Babylon proposed a solution where bitcoin holders could trustlessly stake their idle Bitcoin to increase the security of PoS chains, earning yields in the process. The protocol reduces stake withdrawal delays and improves overall security with full slashable security guarantees. This integration ensures that PoS systems benefit from Bitcoin's immense hash power, providing enhanced protection against security threats while maintaining efficient transaction finality.
Moreover, unlike within traditional financial systems, the interest rate for Bitcoin staking would be determined by users themselves rather than a central bank, unburdened by political agendas. The more useful Bitcoin is — measured by volume and frequency of transactions, use cases for smart contracts, and wider confidence in the currency — the higher the Bitcoin interest rate will climb.
Even though Stacks had the PoX - Proof of Transfer, compared to it Babylon’s Staking Protocol does not require spending of Bitcoins, but preserves the staked Bitcoin as long as no security violations occur. This enables a more efficient and scalable utilization of the asset for security applications. This led BQLabs to choose Babylon as the staking protocol of choice and add further momentum to Bitcoin’s Renaissance .
Massive growth potential in Bitcoin LSD as witnessed by LSD/Market Cap compared to other chains
<aside> 🎂 Have your cake and eat it too (and insure it too)
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