Babylon Labs launches main net, carrying 50K Bitcoin (BTC) as collateral

Babylon Labs launched its Babylon Chain, a new layer for native Bitcoin (BTC) re-staking. Babylon has so far locked 50K BTC in non-custodial staking to secure its new network. 

Babylon Labs launched its native Babylon Chain, after securing it with over 50,000 Bitcoin (BTC). The chain’s proposal is that anyone can lock BTC in non-custodial staking, securing multiple projects while earning yield. The staking is risk-free, as the coins are only locked, not bridged. Stakers can unfreeze their BTC in seven days, a much shorter period compared to other staking protocols.

Babylon Labs adds to Bitcoin DeFi layer

Babylon Labs already locks in 51,167.19 BTC, on par with some of the large reserves or treasuries. The BTC remains locked and not sold on the market, while its value can be used in other apps and protocols. Babylon Labs ended its Phase 1 in December 2024, completing several rounds of BTC locking events. 

Babylon Genesis, as the chain is also known, is a newly launched L1 network. The project will expand with other Bitcoin Secured Networks (BSN) and their apps. The success of Babylon Labs has created the long-awaited DeFi layer for BTC.

Curious how Babylon Genesis acts as a control plane that sits between Bitcoin and the rest of the decentralized world?
Check out this infographic 👇 pic.twitter.com/eLfnIrbSf8

— Babylon (@babylonlabs_io) April 15, 2025

The new chain launch follows the Eigen Layer model on Ethereum, expecting multiple apps and DeFi liquidity. The Genesis launch stands for Stage 2 of the Babylon Labs project. The new chain uses the Cosmos SDK, a multi-chain solution for DeFi. 

In Stage 3, Babylon Labs will allow the launch of new chains, using the same BTC security linked to the Bitcoin layer. So far, Babylon Labs has only accepted lockups, with no unlocks or withdrawals. 

Bitcoin-based DeFi already holds over $5.2B in locked value. A total of $4.09B belongs to Babylon Labs, based on the BTC price levels at $85,506.81.

Babylon Genesis to use dual staking

The popularity of BTC staking with Babylon Labs was due to the expectation of an airdrop. The native Babylon (BABY) token was distributed to some of the biggest BTC delegates and then to end users. 

Babylon Labs currently relies on depositors, where Lombard and Solv Protocol have the biggest share of staked BTC. 

Just days before the Genesis launch, Babylon Labs also announced its tokenomics for the BABY native token. The asset will serve alongside BTC as a network security tool. Depositors and users will also receive BABY for keeping their stake longer.

The native BABY token will drive transactions, governance votes, and add to the security of the ecosystem. BABY will also work as a gas token within the Babylon Genesis chain and other chains. BABY will also be used to align incentives among validators, stakers, and governance voters. 

Despite the new chain launch, BABY is currently under heavy selling pressure. BABY lost over 22% in the past trading day, sinking to $0.096. BABY is seen as a token at risk for selling pressure, as more than 67% of the asset are allocated to insiders, with up to 85% allocated to additional categories of early backers. Babylon Labs was a high-profile project that raised $96M from some of the top VC firms in crypto.

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