Recently, the market has been outraged by the airdrop plan of #Babylon, which is quite understandable. After all, expectations were high at the beginning, benchmarking against the existence of #Eigen. However, the current market liquidity is concerning, and in the context of Trump's tariffs, the situation is deteriorating. It makes sense to shrink the front lines and compress selling pressure for the long-term healthy development of the project, encouraging long-term thinking. We have also staked a considerable amount, and the airdrop quantity and pre-market price are indeed frustrating, but as rational investors, it may be more reassuring to look at #Babylon's long-term development strategy.

We know that #BTC, as a reserve asset, has never been able to release its potential trillion-dollar liquidity, which is a desecration of the crypto market. Babylon Genesis is built around this pain point, creating underlying infrastructure to utilize Bitcoin staking and liquidity construction to achieve the grand blueprint of #BTCFI. The goal is to make Bitcoin not just a "store of value" but an asset class that can actively participate in the DeFi ecosystem. The three stages of its development path are worth exploring in depth, allowing us to view its value from a longer-term perspective.

Stage One: The Core Layer of Bitcoin Staking

• The core function of Babylon Genesis is to allow Bitcoin holders to participate in staking and provide security for other blockchains.

• Through Bitcoin timestamps, Genesis provides trustworthy time information for different blockchains, ensuring the security of transactions and states.

• Bitcoin holders can earn rewards by staking BTC without needing to transfer their coins to other chains, reducing security risks.

This first stage has basically been completed and is a very important step. Currently, Babylon's TVL has reached 4.3 billion USD, and its staking market cap ranks 10th among all PoS chains, but only accounts for 0.27% of Bitcoin's market cap (with greater future potential). BTC has primarily been an asset for "storing value," while Babylon makes BTC "usable" and capable of generating returns, which is very attractive to long-term investors.

Stage Two: The Liquidity Hub for Bitcoin

• In this stage, Genesis will not only serve as a security layer but will also become a liquidity hub for Bitcoin DeFi (BTCFi).

• Key functions include:

• DEX (Decentralized Exchange): Providing a trading market specifically designed for BTC.

• LST (Liquid Staking Tokens) Minting: Users can stake BTC and receive tradable LST (similar to stETH for ETH).

• BTC Staking Loans: Users holding BTC can collateralize loans to improve capital utilization.

• Re-staking: Users can use staked BTC to participate in more DeFi protocols to earn additional rewards.

• DeFi Vault: Helping users automatically manage funds to increase returns.

• Reward Center: Distributing earnings from the BSN (Bitcoin Security Network) to BTC stakers.

The second stage is currently being actively developed by Babylon, which will encourage BTC to no longer just lie coldly in wallets but to become a core asset of the entire DeFi ecosystem, bringing new investment opportunities, especially by unlocking trillions of dormant assets and generating at least hundreds of billions in incremental funds. This undoubtedly injects new vitality into the current market, which is struggling.

Stage Three: Expanding to a Larger Blockchain Ecosystem

• In this stage, Genesis will become an important part of the entire Bitcoin ecosystem and expand to EVM compatibility, supporting more DeFi protocols.

• Key highlights:

• More DeFi applications for BTC staking will emerge, such as more DEXs, lending, liquidity pools, etc.

• Further optimization of BTC staking rewards, providing Bitcoin holders with more ways to earn.

• Cross-chain bridge upgrades, allowing BTC to circulate more securely across different blockchains (such as Cosmos, Ethereum).

As the ultimate form and appearance of future development, the BTCFI ecosystem is still in its early stages. Babylon Genesis is expected to become the "heart" of this market, dominating BTC staking and liquidity management, and the potential within it is self-evident. The larger the market, the greater the scale, and the more opportunities there will be.

Summary: The development path of #Babylon indicates that it is not just a simple Bitcoin staking platform but a complete BTCFI ecosystem. For ordinary investors, Babylon offers an opportunity to hold #BTC while earning returns, while also reducing the security risks of cross-chain DeFi. However, as the demand for Bitcoin liquidity continues to grow, #Babylon is expected to become the core infrastructure of BTCFI, with good investment potential, making it worthy of long-term attention. 🧐

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