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Binance enters Bitcoin DeFi sector with Babylon Labs BTC staking offering

Author: Content Editor
Binance Earn has introduced on-chain passive income through a partnership with Babylon Labs, starting with Bitcoin staking. This unique non-custodial staking service allows users to earn yields while holding BTC for the long term. Binance Earn plans to integrate on-chain income from Babylon Labs in the first stage of On-Chain Yield, which may expand to include more products and chains. The service allows users to participate in multiple protocols offering on-chain yields using their Binance accounts, eliminating the need for multiple wallets and staking accounts. However, the Binance account wallet may not support certain airdrops, in which case users will need to provide a self-custodial wallet address. The on-chain reward mechanism will be listed under Binance's High Yield tab, and there will be a 1,000 BTC cap with each user limited to staking between 0.5 BTC and 5 BTC. Binance will provide more details about on-chain yield in the coming weeks. Babylon Labs, which is working towards creating a DeFi ecosystem on Bitcoin, is preparing for its third staking event, Cap-3. The event will have a one-week duration with a minimum staking amount of 0.005 BTC and an increased maximum of 5,000 BTC. Participants will receive points based on the BTC locked in each block, but it is unclear if these points will be eligible for an airdrop in jurisdictions outside of the US. Babylon Labs has already achieved considerable success with $2.38B locked in BTC-based products based on its previous lockup rounds. The project aims to continue building liquidity and its own DeFi ecosystem.

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