The world of decentralized finance (DeFi) is witnessing a pivotal shift as two innovative forces—Babylon Labs and SatLayer—join hands to unlock Bitcoin’s untapped potential in staking and restaking ecosystems. This strategic alliance marks a transformative moment for Bitcoin, enabling it to move beyond its traditional role as digital gold and emerge as a foundational pillar of secure, scalable, and capital-efficient DeFi applications.
With over $2 billion in Total Value Locked (TVL), Babylon Labs has established itself as a leader in Bitcoin staking infrastructure. Now, through its integration with SatLayer, the ecosystem is poised to deliver programmable security, shared security models, and enhanced liquidity across multiple blockchains and decentralized applications (dApps). This collaboration accelerates Bitcoin’s journey toward feature parity with Ethereum in the realm of staking and restaking—without compromising decentralization or trust assumptions.
Revolutionizing Bitcoin Security and Utility
At the core of this partnership lies a shared vision: to extend Bitcoin’s unmatched security to a broader range of blockchain infrastructures and applications. By leveraging Babylon’s trustless, self-custodial staking protocol, users can now stake their BTC directly on Proof-of-Stake (PoS) chains, Layer 2s, and Data Availability (DA) layers—without bridges, wrapping, or third-party custody.
👉 Discover how Bitcoin is evolving into the backbone of secure DeFi ecosystems.
SatLayer builds upon this foundation by introducing advanced restaking capabilities through smart contracts deployed on Babylon Chain. These contracts enable fully programmable slashing conditions—such as node liveness checks and challenge proofs—allowing developers to build crypto-economically secured services using restaked BTC. This innovation introduces Bitcoin Validated Services (BVS), where dApps like decentralized exchanges (DEXs), oracles, bridges, and launchpads can inherit Bitcoin-level security.
Fisher Yu, CTO of Babylon Labs, emphasized the significance:
“We're committed to building a more secure and interconnected blockchain ecosystem. This collaboration with SatLayer allows us to extend Bitcoin's robust security to a wider range of applications and infrastructure.”
This means that staked Bitcoin isn’t just securing PoS chains or rollups—it’s securing an entire stack of applications and services. The result? A new era of capital efficiency, interoperability, and economic security powered by the world’s most trusted cryptocurrency.
The Expanding Role of Bitcoin in Modern Finance
Bitcoin’s dominance continues to grow, driven by record-breaking institutional adoption. The approval and success of spot Bitcoin ETFs have opened floodgates for traditional finance players, while sovereign nations are increasingly considering Bitcoin for national reserves. Beyond macro trends, technical innovation is redefining what Bitcoin can do.
Major Layer-1 networks like Solana are integrating Bitcoin through wrapped BTC and Liquid Staking Tokens (LSTs) to bring its value into active DeFi protocols. Babylon amplifies this trend by enabling native BTC staking across ecosystems. Through established LST projects such as Lombard, Solv, and Bedrock, the liquidity of staked Bitcoin is unlocked—making it usable across DeFi without sacrificing ownership or security.
SatLayer further enhances this utility by extending both security and liquidity to dApps built within these ecosystems. Developers can now build on top of restaked BTC, knowing their applications are backed by one of the most resilient consensus mechanisms in existence.
Apps Are the Future: Empowering Developers with BVS
While infrastructure lays the groundwork, applications drive adoption. Babylon and SatLayer recognize that the next wave of crypto growth will come from builders creating real-world use cases. Their combined stack empowers developers to leverage Bitcoin’s economic strength in ways previously impossible.
Luke Xie, Co-Founder of SatLayer, highlighted this shift:
“Together, we enable applications and infrastructure to harness Bitcoin’s unmatched security while expanding its liquidity through programmable restaking frameworks. The launch of SatLayer's devnet opens up a new era of Bitcoin-powered innovation for builders everywhere.”
By combining Babylon’s secure staking layer with SatLayer’s flexible restaking engine, developers gain access to a powerful toolkit for building Bitcoin-secured dApps. Whether it’s a cross-chain bridge needing Byzantine fault tolerance or an oracle requiring tamper-proof data validation, BVS offers a modular framework for embedding Bitcoin-grade security.
👉 Explore how developers are building the future of DeFi with Bitcoin-backed security.
SatLayer Devnet Launch: A Gateway for Builders
Today, SatLayer officially launches its devnet, providing comprehensive tools and documentation for developers eager to experiment with Bitcoin restaking. The devnet includes full support for the Bitcoin Validated Services (BVS) Framework, allowing early adopters to prototype secure dApps using restaked BTC.
Resources are readily available at docs.satlayer.xyz, offering tutorials, API references, and integration guides. The team has already demonstrated strong commitment to the developer community—participating as mentors, grant sponsors, and judges at the Babylon Hacker House in Bangkok (November 5–9, 2024). Over 70 developers attended, creating innovative solutions using Babylon Chain and early previews of SatLayer’s BVS framework.
This grassroots engagement underscores a long-term strategy: empower builders first, then scale the ecosystem organically.
Ecosystem Growth Initiatives
To accelerate innovation, Babylon Labs and SatLayer are preparing a suite of ecosystem initiatives designed to support developers from concept to market:
- A comprehensive incentive program for ecosystem contributors
- Dedicated technical support and development resources
- Mentorship programs covering go-to-market strategies, user growth, and fundraising
These efforts aim to lower barriers to entry and foster a vibrant community of builders pushing the boundaries of what Bitcoin can secure.
Core Keywords Integration
Throughout this evolution, key concepts remain central:
- Bitcoin staking
- Restaking platform
- Shared security
- DeFi innovation
- Programmable slashing
- Bitcoin Validated Services (BVS)
- Capital efficiency
- Liquidity unlocking
These keywords reflect not just technical features but the broader shift in how Bitcoin participates in Web3 economies—moving from passive store-of-value to active participant in securing decentralized systems.
Frequently Asked Questions (FAQ)
What is Bitcoin restaking?
Bitcoin restaking allows holders to reuse their staked BTC to provide security across multiple chains and applications. Through platforms like SatLayer on Babylon Chain, this process becomes programmable and trust-minimized.
How does Babylon enable trustless Bitcoin staking?
Babylon uses cryptographic protocols that allow users to stake BTC directly on PoS systems without intermediaries. Users retain full custody while earning rewards—no bridges or wrapped tokens required.
What are Bitcoin Validated Services (BVS)?
BVS refers to decentralized applications or infrastructure components secured by restaked BTC. Examples include oracles, bridges, and DEXs that inherit economic security from Bitcoin’s network.
Can I earn yield on my BTC without giving up control?
Yes. With Babylon’s protocol and LST partners like Lombard and Solv, you can earn staking rewards while maintaining self-custody—no third-party custody needed.
Is this similar to Ethereum restaking?
In function, yes—SatLayer brings Ethereum-level restaking capabilities to Bitcoin. But unlike other implementations, it leverages Bitcoin’s superior security model for greater resilience.
How can developers start building with BVS?
Visit docs.satlayer.xyz to access devnet resources, SDKs, and sample code for launching your own Bitcoin-secured dApp.
👉 Join the movement redefining Bitcoin’s role in decentralized finance today.
This alliance between Babylon Labs and SatLayer isn’t just a technical upgrade—it’s a paradigm shift. For the first time, Bitcoin stands ready not only to secure blockchains but also to power the next generation of decentralized applications with unmatched economic finality and trustless operation. As developer activity surges and ecosystem incentives take shape, the vision of a Bitcoin-secured digital economy moves closer to reality.