Persistence One is thrilled to announce that it will be one of the first Cosmos-based chains to borrow security from Bitcoin through Babylon. This move will help secure the P1-Chain by leveraging the Babylon security-sharing marketplace, bolstering our protocol by borrowing economic security from Bitcoin.
As a result, Persistence One will continue to be one of the most secure PoS chains in the Cosmos ecosystem. It will also make Persistence One more aligned with Bitcoin as we continue to build toward launching the mainnet for our BTC Interoperability solution, which will allow numerous BTC variants to undergo seamless cross-chain swaps powered by Intents.
Let’s take a deep dive into Babylon and provide an overview of why Persistence One is excited to be one of the first to bolster its security infrastructure through Bitcoin.
What is Babylon?
Babylon represents a groundbreaking initiative within the BTC ecosystem. It is designed to bridge the gap between Proof-of-Stake (PoS) chains and the unparalleled security of Bitcoin’s Proof-of-Work (PoW) framework. The BTC staking protocol innovatively connects BTC holders with PoS chains through a two-sided marketplace, enabling secure and lucrative staking opportunities for BTC holders and enhanced security for PoS projects like Persistence One.
While PoS blockchains are more sustainable and scalable than PoW chains, they still pose the following problems:
- Users are required to lock native tokens into the protocol to provide economic security.
- Rewards from PoS staking often lead to high levels of inflation to attract security.
- Locking tokens into the protocol renders tokens illiquid.
Babylon seeks to address these problems for PoS chains by leveraging unutilized liquidity in the Bitcoin market through staking.
Babylon’s core innovation lies in its ability to convert unutilized Bitcoin liquidity into a security asset for PoS chains. This is done by leveraging Bitcoin’s time-lock features to transform BTC into a slashable asset that can be staked, providing economic security without the pitfalls traditionally associated with PoS mechanisms. Thus, Babylon not only enhances security but also offers BTC holders a profitable yield, creating a win-win for both sides.
Since launching its mainnet in August 2024, Babylon has gained significant traction, accumulating over 24,000 BTC—valued at more than $1.5 billion. This overwhelming support underscores the confidence BTC holders have in Babylon’s potential to reshape blockchain security paradigms.
Why is Persistence One Borrowing Security from Babylon?
As Persistence One is a Cosmos-based chain, we will be one of the first PoS platforms to onboard Babylon’s security mechanism for the Persistence Chain, utilising its unique BVS mechanism, which allocates security to PoS chains.
Persistence One is already well known to maintain one of the highest bonded ratios (~75%) among all PoS chains. However, we’re always looking for additional routes to enhance our security, and the opportunity from Babylon provides the perfect option.
The following are some of the most notable benefits of borrowing security from Babylon:
- Leverage Bitcoin’s PoW Security: By adopting Babylon’s model, Persistence One combines the robustness of PoW with the flexibility of PoS, boosting credibility through Bitcoin’s established trust.
- Maintain XPRT Token Utility: Borrowing from Babylon enhances security without compromising the utility or value of our native XPRT token. It potentially provides the opportunity to reduce inflation in exchange for security, preventing dilution for XPRT holders.
- Align with Bitcoin Initiatives: The onboarding marks a significant step in our commitment to building a BTC-focused ecosystem, reinforcing our alignment with the Bitcoin community. There’s no better way to become Bitcoin-aligned than securing the network using its enormous security algorithm.
Overall, Persistence One is thrilled to be one of the first Cosmos-based ecosystems that will leverage Bitcoin security as we gear up to launch our BTC cross-chain swapping venue for all BTC variants in the BTCfi space.
What is Persistence One?
Persistence One is a Bitcoin-focused cross-chain swapping solution. Our platform will use a cross-chain intents-based solution, which allows users to specify the outcome of a particular swap while allowing the Solvers to choose their routes to make it happen. Essentially, it will enable users to specify the ‘what’ of a specific swap, such as the desired asset and quantity, while leaving the ‘how’ it is executed to the experts. Solvers can utilize unified liquidity across the entire market and take on the finality risk for users to provide incredibly fast swaps between chains with zero slippage.
To learn more about cross-chain intents, take a look at this blog.
Most importantly, Persistence One and its interoperability product will be secured by Bitcoin, leveraging the security-sharing infrastructure introduced by Babylon Labs.
As you can see, we’re very BTC-orientated, and our service for BTC builders will only integrate BTC-aligned or BTC-related assets. Our goal is to make it easier to move Bitcoin around in all its forms and help bring the BTCfi world closer together in a cohesive ecosystem to push the boundaries of what’s possible with BTCfi.
About Persistence One
Persistence One is building a Bitcoin interoperability solution to enable cross-chain BTC swaps across Bitcoin Layer 2s.
The rapid rollout of Bitcoin L2s and side chains has led to fragmentation, hurting BTCfi scalability. Using the power of intents, Persistence One will enable users to move assets across Bitcoin Layer 2s more efficiently than traditional bridging, offering fast, secure, zero-slippage cross-chain swaps.
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