Babylon Labs has upheld a success in decentralized finance with the launch of Satya Bitcoin Vault.
Summary
- Babylon launched reliable bitcoin volts on August. 6, enable the native BTC to interact with DEFI without bridges or mentors.
- Vaults use BITVM3 and zero-knowledge proofs to implement smart contracts logic while BTC remains on-C.
- This feature expands the role of BTC in DEFI and complements Babylon’s bitcoin stacking ecosystem.
Announced through August 1. 6 posts on X, these vaults allow the native bitcoin (BTC) to be used in decentralized finance applications, such as borrowing, stabelcoin mining, and always relying on the flee, biman, without turning, without, braiding, or custodians.
Bitcoin in bitcoin without leaving bitcoin
Walt function by locking bitcoin UTXOS under predetermined cryptographic rules. To unlock BTC, users have to present zero-knowledge proofs to validate the smart contract logic without highlighting private data. Babylon takes advantage of Bitvm3, using a bitcoin proof verification framework zkps and guard circuits, to ensure that BTC never takes a bitcin blockchain.
This design applies to DEFI logic, with the need for intermediaries, affects liquidation and redemption, allows the native bitcoin to act as colors on ethetrem (ETH), cosmos (atom), and other cords.
A borrower, for example, can lock $ 50,000 in Ethereum Stablecoins and bitcoin in a vault. A liquidator can climb the collateral by submitting a valid ZKP in the event that the value of bitcoin decreases.
Cases of use for vault include borrowing, stabelcoin issue, always decentralized exchange collateral, and live staging, which BTC has committed self-codes.
Btcfi power and expand Babylon’s vision
Trules vaults are part of Babylon’s widespread push to integrate bitcoins into decentralized economies. The Defi uses less than 1% of market capitalization of about 1.8 trillion dollars of bitcoins by August 2025.
Additionally, Vaults are associated with Babylon’s $ 5 bitcoin staking protocol, which went live on the mennet in August. 2024.
Babylon’s roadmap includes future development, multi-stacking support, EVM integration and a cross-chain bitcoin liquidity layer that are expected in Q1 2026.
