Babylon Labs Introduces New Bitcoin Collateral Approach in DeFi
Babylon Labs showcases a system enabling native Bitcoin to function as collateral for DeFi loans, while BNB Chain and Hyperliquid announce key updates.
Babylon Labs’ Initiative
Babylon Labs has announced a novel proof-of-concept that enables native Bitcoin to serve as collateral for borrowing assets within the decentralized finance (DeFi) ecosystem on Ethereum. This announcement comes as both BNB Chain and Hyperliquid are rolling out significant updates.
At a recent event, David Tse, co-founder of Babylon Labs and a professor at Stanford University, explained that the company has successfully developed a trustless mechanism for utilizing native Bitcoin as collateral in loans on Ethereum.
This announcement aligns with the release of a white paper detailing the creation of a Bitcoin trustless vault system, which employs smart contract verification via BitVM3 to securely lock Bitcoin in individual vaults.
In this innovative system, users can securely lock their Bitcoin while obtaining the ability to utilize it on Ethereum without a need for custodians or bridges.
Bitcoin Vault System
Source: Babylon Labs
BNB Chain Experiences Significant Growth
On a separate note, BNB Chain has reached record user activity, with the number of active addresses hitting an all-time peak of 3.46 million on Monday. This is a significant increase compared to the previous record of 3.44 million set in December 2023.
Nansen reported that over the last month, successful transactions on the BNB Chain soared to 500 million, marking a remarkable 151% increase from the preceding month. BNB Chain now ranks second in terms of transaction volume, following Solana.
User Activity on BNB Chain
Source: Nansen
Hyperliquid’s New Trading Offering
In a recent update, Hyperliquid has enabled third-party developers to launch their own perpetual swap contracts on its decentralized exchange platform. This feature was made possible through the implementation of Hyperliquid Improvement Proposal 3 (HIP-3).
This allows anyone staking 500,000 HYPE tokens to create custom perpetual futures with independent margining and orderbook parameters.
Hyperliquid Update
Source: Hyperliquid
Uniswap’s Expansion into Solana
Uniswap has integrated support for the Solana network on its web app, providing users of the Solana blockchain the opportunity to connect their wallets and trade Solana-based tokens in conjunction with those from other networks.
Conclusion
Stay tuned for more updates in the DeFi sector as it continually evolves.
