The Defi -Ecosystem from Bitcoin may finally be ready to hire the big players, because a new project makes Bitcoin’s inherent security.
The Defi -Ecosystem from Bitcoin has won a new player, Babylon, who could form his future. In a recent report, Nansen called the project potentially one of the most undervalued plays on the Defi Ecosystem of Bitcoin.
It is crucial that Babylon enables users to earn rewards in Bitcoin terms without trusting packed assets or cross-chain bridges. The protocol uses the inherent security and decentralization of Bitcoin and offers a safer and more native alternative to deportation.
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The process, called Bitcoin Resting, includes locking BTC in a script on the Bitcoin -Blockchain. The Babylon protocol then uses an SDK transaction from Cosmos to verify whether the funds are on-chain. Once verified, the Babylon chain divides rewards to BTC strikers in relation to their possession.
Where Bitcoin -repairing rewards come from
Since Bitcoin itself offers no rewards, these stimuli come from the Babylon chain, mainly through baby token inflation. The annual inflation percentage of 8% is equally distributed between Bitcoin and baby strikers.
This means that baby token strikers bet that the growth of token will exceed 8% inflation. For Bitcoin holders, however, the protocol creates a new income flow without giving up guardianship of their assets of the risks of third parties such as hacking or carpet trekkings.
In the past year, the Defi -Ecosystem from Bitcoin has gained considerable growth. The ecosystem reached a record high in December last year of almost $ 8 billion. Even after a subsequent correction of up to $ 5.27 billion, it still experienced more than 500% growth year after year.
Developers and entrepreneurs are increasingly bet on Bitcoin Defi because of the strong name recognition and the enormous user base. At the same time, they see decentralized finances as a way to unlock new use cases for the Bitcoin network.
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