Bitcoin derivatives hit Starknet and Sui
By: bitcoin ethereum news|2025/05/15 01:45:04
0
Share
This is a segment from the 0xResearch newsletter. To read full editions, subscribe. New forms of bitcoin liquidity are finding their way into emerging blockchain ecosystems, with recent integrations of Lombard’s LBTC and Stacks’ sBTC expanding opportunities for BTC holders in cross-chain DeFi. On Starknet, a new partnership between the Starknet Foundation and Lombard Protocol will introduce LBTC, a fully bitcoin-backed liquidity token. LBTC maintains a 1:1 backing by native BTC reserves, which is bridged into Starknet DeFi. Lombard, a protocol built on top of Babylon, receives BTC deposits, stakes them via Babylon and issues LBTC as a liquid representation of staked BTC. LBTC is intended to be multichain: available on Ethereum, Arbitrum, Sui, Genesis (Babylon) and others. Led by Starkware CEO Eli Ben-Sasson, Starknet has positioned itself as a performant execution layer for Bitcoin, in addition to Ethereum. “Moves like this invigorate a whole new class of builders and users — people who want the credibility of Bitcoin and the creativity of DeFi,” he said. The phased rollout of LBTC will initially focus on bridging and liquidity provisioning, followed by the introduction of staking options in Lombard-powered vaults. These vaults will enable LBTC holders to generate yield without surrendering custody of their underlying bitcoin. While Babylon’s BTC staking is trust-minimized, LBTC introduces additional trust assumptions tied to how Lombard mints and manages tokens and bridges, according to Cubist co-founder Riad Wahby. Cubist provides threshold signature tooling for Lombard and other Babylon ecosystem participants. Having said that, Wahby added, “I feel more comfortable with LBTC, but that’s because we know a lot about their security.” Meanwhile, Sui is preparing to integrate sBTC, the bitcoin-backed token native to the Stacks ecosystem. The token uses a threshold-signature multisig secured by a set of 15 reputable institutional signers, with plans to gradually decentralize by integrating directly into Stacks’ consensus mechanism. The expansion will enable new opportunities for lending, borrowing and trading without compromising Bitcoin’s decentralization, according to Stacks founder Muneeb Ali. Bypassing centralized custodians, “sBTC will be bridged to Sui via a trust-minimized, non-custodial process that preserves Bitcoin’s native security,” Ali told Blockworks. “This collaboration lets us bring bitcoin to where the people are, and introduce more users to the growing bitcoin economy,” he said. Holders of sBTC on Sui will benefit from dual-yield opportunities: a base ~5% BTC reward merely for minting and holding sBTC, plus additional incentives from deploying the asset in Sui DeFi protocols. The decision to integrate sBTC positions Sui as a new alternative hub for institutional BTCfi use cases — the network is already capturing significant bitcoin liquidity, with over 10% of Sui’s total TVL now originating from Bitcoin-derived assets, according to the Sui Foundation. Both integrations signal a growing trend toward major L1s and L2s actively competing to onboard BTC liquidity to enrich their homegrown DeFi offerings. They are part of a trend shifting away from bitcoin derivatives relying on centralized custodians in cross-chain deployments. This should appeal to a subset of bitcoin holders who want to maintain self-custody while reaching for yield. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/bitcoin-derivatives-starknet-sui-lbtc-sbtc
You may also like

The AI gamble of mining companies: Valuations enter a phase of differentiation, and it's hard to turn the tide
This gamble of transforming into AI is testing the financial strength and execution capability of mining companies.

A letter from Alliance to entrepreneurs: Written on the occasion of Cursor selling for 60 billion dollars
Great companies are forged before they become obvious.

Will MicroStrategy fall into a death spiral? What will the macro trend be in the second half of the year?
The cryptocurrency industry may gradually shift from the hype of native altcoins to real asset tokenization, on-chain machine economy, and a more mature industrialization phase.

Blockchain Capital Partner: The Core Secret of Arbitrage
On cold starts, breaking the circle, and the toughest hurdle for founders to overcome.

STRC unanchored by 11%, can the perpetual motion machine of Strategy still operate?
Beyond the leverage crunch, what is even more concerning is the liquidity reserves of the Strategy.

Bitcoin Market Analysis 2026: Can BTC Reach $150K by Year-End?
Bitcoin price prediction 2026: Can BTC hit $150,000 by year-end? Explore Fed policy, Kevin Warsh's stance, Bitcoin ETF flows, exchange data, and BTC market forecasts.

Bitcoin ETF Outflows Hit a Record $4.4 Billion: What Are Traders Doing With Their Cash?
Bitcoin ETFs lost $4.4 billion over 13 trading days, raising questions about market sentiment and Bitcoin's bottom. Here's what Standard Chartered is watching and how traders are managing idle stablecoin balances during uncertain markets.

WEEX App Just Got Smarter – New Tabs for Faster Trades & Easy Asset Management
Discover WEEX App’s new trading tabs: Futures, TradFi, Copy Trade (users)/ Elite Trade (lead traders) on the same page. Solve messy navigation, find opportunities faster, and manage all trades in one place.

WEEX All-New Search Features: Find, Trade & Earn Faster Than Ever
Supercharged search is here! Discover WEEX’s upgraded Search features with hot events, new listings, live market sentiment, and one-click trading. Trade smarter, seize every opportunity.

Morning Report | Illinois signs the strictest digital asset tax law in the U.S.; RWA tokenization market size surpasses $43 billion, institutions accelerate the migration of on-chain assets
Overview of Important Market Events on June 17

Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot
Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance
"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?
Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun
OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

New gameplay for participating in initial offerings on cryptocurrency exchanges
In this competition for cutting-edge assets, what has always been truly scarce is not the technology, but the underlying equity itself.

Why Is Bitcoin Down Today? What the Hawkish FOMC Means for SpaceX, Gold and Nasdaq
Why is Bitcoin down today? A hawkish FOMC pressured crypto and gold, while SpaceX surged to a $2.5 trillion valuation and Nasdaq gained attention. Here's what happened and why traders are looking beyond Bitcoin.

DeepSeek Financing Story
DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Morning Report | DeepSeek completes over $7 billion in financing, with a valuation exceeding $50 billion; Musk's personal wealth has surpassed the total market value of Bitcoin
Overview of Important Market Events on June 16
The AI gamble of mining companies: Valuations enter a phase of differentiation, and it's hard to turn the tide
This gamble of transforming into AI is testing the financial strength and execution capability of mining companies.
A letter from Alliance to entrepreneurs: Written on the occasion of Cursor selling for 60 billion dollars
Great companies are forged before they become obvious.
Will MicroStrategy fall into a death spiral? What will the macro trend be in the second half of the year?
The cryptocurrency industry may gradually shift from the hype of native altcoins to real asset tokenization, on-chain machine economy, and a more mature industrialization phase.
Blockchain Capital Partner: The Core Secret of Arbitrage
On cold starts, breaking the circle, and the toughest hurdle for founders to overcome.
STRC unanchored by 11%, can the perpetual motion machine of Strategy still operate?
Beyond the leverage crunch, what is even more concerning is the liquidity reserves of the Strategy.
Bitcoin Market Analysis 2026: Can BTC Reach $150K by Year-End?
Bitcoin price prediction 2026: Can BTC hit $150,000 by year-end? Explore Fed policy, Kevin Warsh's stance, Bitcoin ETF flows, exchange data, and BTC market forecasts.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com



