Introduction to shBTC

shBTC: The Liquid, Cross-Chain Bitcoin Solution

shBTC is a liquid, yield-bearing synthetic Bitcoin token designed to seamlessly integrate Bitcoin into the decentralized finance (DeFi) ecosystem. Fully backed 1:1 by BTC, shBTC offers secure, cross-chain compatibility, enabling BTC holders to unlock yield potential while retaining liquidity. With shBTC, StrongHodl provides a robust, decentralized solution that amplifies the utility of Bitcoin in DeFi.

Unique Attributes of shBTC

1. Earns Native Yield + Rewards

shBTC allows BTC holders to earn native yield from Babylon Protocol staking and additional rewards within StrongHodl. By utilizing shBTC in DeFi, holders can maximize returns without sacrificing the stability of their Bitcoin holdings.

2. Cross-Chain Compatibleb

shBTC is natively minted on major blockchains, specifically Ethereum and Solana, facilitating seamless cross-chain transfers. This cross-chain flexibility empowers users to navigate multiple DeFi ecosystems while maintaining a unified Bitcoin liquidity pool.

3. Liquid & DeFi Compatible

Fully backed by Bitcoin at a 1:1 ratio, shBTC can be used as collateral in lending and borrowing protocols, decentralized exchanges (DEXs), perpetual DEXs, and other DeFi applications. It serves as a versatile asset that enhances the usability of Bitcoin within DeFi.

4. Enhanced Security

shBTC is secured by Babylon’s decentralized infrastructure, offering stronger security than traditional wrapped tokens or unsecured bridges. Babylon’s security protocols ensure that shBTC is a reliable and safe alternative to centralized solutions, making it ideal for users prioritizing asset protection.

Benefits to shBTC Holders

Liquid BTC Value: shBTC holders retain the liquid value of their BTC while earning yield, ensuring they can access their assets and utilize them in DeFi.

Multiple Layers of Passive Yield:

• Babylon Staking Yield: Earn native staking rewards by participating in Babylon’s PoS security markets.

• StrongHodl Points and Rewards: Earn rewards based on activity and contributions within StrongHodl’s ecosystem.

• Protocol Incentives: Benefit from yield opportunities across Ethereum and Solana through various DeFi platforms integrated with shBTC.

Enhanced DeFi Earning Potential: shBTC holders can leverage their assets across DeFi to generate even more yield. Options include:

• Providing liquidity on DEXs and earning trading fees.

• Lending shBTC or borrowing against it to unlock additional capital.

• Utilizing shBTC in automated yield-generating vaults to optimize returns.

• Engaging in yield-trading strategies that maximize rewards from DeFi protocols.

shBTC empowers Bitcoin holders—from individuals to institutions—to tap into DeFi, unlock multi-layered yield, and diversify their assets across blockchain ecosystems. With shBTC, Bitcoin becomes a fluid, yield-generating asset within a secure and decentralized framework, enabling holders to participate in the growing DeFi landscape without sacrificing the security and stability of their BTC.

Ejemplo de cómo lo tiene Lombard para coger como referencia

LBTC: The Universal Liquid Bitcoin Standard

LBTC is liquid Bitcoin; it's yield-bearing, cross-chain, and 1:1 backed by BTC. LBTC enables yield-bearing BTC to move cross-chain without fragmenting liquidity, and is designed to seamlessly integrate Bitcoin into the decentralized finance (DeFi) ecosystem while maintaining the security and integrity of the underlying asset.

LBTC is designed to empower anyone—from individual holders to large institutions—to amplify the utility of their Bitcoin.

Unique attributes of LBTC:

• Earns native yield + rewards: LBTC earns native yield from Babylon staking and Lombard Lux, and can be used across DeFi to maximize returns.

• Cross-chain compatible: LBTC is natively minted across major blockchain ecosystems, enabling seamless cross-chain movement.

• Liquid & DeFi compatible: LBTC, backed 1:1 with BTC, can be used as collateral in lending and borrowing protocols, perp DEXs, and more.

• Secure: LBTC is secured by a network of consortium ecosystems, providing better security than centralized wrapped tokens and unsecured bridges.

Benefits to LBTC holders:

• LBTC holders retain the liquid value of their BTC

• LBTC holders passively accrue multiple layers of yields:

  • Babylon Staking Yield

  • Babylon Points

  • Lombard Lux

  • Yields and Incentives from LBTC destination chains and protocols

• LBTC holders can earn even more by deploying their LBTC into DeFi

  • Providing liquidity on Decentralized Exchanges

  • Lending LBTC or borrowing against it

  • Executing yield trading strategies

  • Committing LBTC to automated yield-generating vaults