Babylon Labs and Fiamma Collaborate to Enhance BTC-Secured Decentralized Finance
Babylon Labs, in partnership with Fiamma, a platform supported by Lightspeed Faction, is dedicated to unlocking real-world assets on the Bitcoin network, aiming to pave the way for a BTC-secured decentralized world.
Fiamma recently announced a significant investment from Babylon Labs to accelerate the realization of this vision, as highlighted in a press release.
The primary objective of this collaboration between Babylon Labs and Fiamma is to introduce trust-minimized Bitcoin bridges to developers and various blockchains within the decentralized finance (DeFi) space.
By incorporating zero-knowledge technology into Bitcoin through Fiamma’s BitVM2 protocol, the partnership aims to unlock new possibilities within Bitcoin’s limited supply of 21 million coins.
Progress and Developments
Following the launch of the testnet for its Bitcoin bridge in November 2024, Fiamma introduced a devnet for the first zero-knowledge verification layer for Bitcoin utilizing BitVM2.
Simultaneously, Babylon Labs has established the largest Bitcoin staking protocol to date, with over 57,000 BTC staked to date. According to DeFiLlama, the Babylon protocol currently boasts a total value locked exceeding $6 billion.
Through Babylon’s non-custodial platform, users can stake their BTC to support proof-of-stake chains while earning additional rewards on their holdings. The integration of Fiamma’s trust-minimized bridge is set to expand BTC’s utility within the DeFi ecosystem.
Strategic Partnerships and Expansion
Fiamma’s growth aligns with the increasing adoption of real-world applications on the Bitcoin network. The platform has formed strategic alliances with entities such as Hack VC, Satlayer (a restaking platform backed by Castle Island Ventures), and RISC Zero (a zero-knowledge virtual machine platform).