RedStone Unveils Bitcoin Liquid Staking Oracles

Major oracle provider for smart contracts, RedStone, has launched a tool for liquid staking of Bitcoin.

? Introducing Bitcoin Staking Oracles ?

RedStone launches the first market-ready Bitcoin Staking Oracles, enhancing Babylon-powered solutions. Delivering the first implementation for @Lombard_Finance.

The LBTC/BTC price feed marks the debut of Bitcoin Staking Oracles. pic.twitter.com/SLYX5ChKHo

— RedStone Oracles ♦️ (@redstone_defi) October 8, 2024

The process resembles that of the Ethereum network—users lock Bitcoin by sending it to a specific address and receive liquid staking tokens (LST) on the blockchain of the second-largest cryptocurrency by market capitalization.

With RedStone’s oracles, the utility of Bitcoin LSTs expands. The functionality mirrors Lido’s stETH. The acquired assets can be utilized in various DeFi projects such as lending protocols.

Without oracles, Bitcoin liquid staking tokens are only available for providing liquidity on decentralized exchanges.

Staking the primary cryptocurrency and obtaining LBTC liquid staking tokens on Ethereum is available through the Lombard platform. It operates on the Babylon protocol launched in August. Support for other networks will be added in the future.

LBTC is supported in Morpho, Gearbox, Pendle, ZeroLend, and other projects.

The process of redeeming BTC for LBTC is carried out by burning the liquid staking token. It is sent back to the Lombard protocol, and after seven days, the coins are returned to the specified Bitcoin network address.

Previously, RedStone raised $15 million in a Series A funding round.

Back in August, developers launched a liquid staking token for digital gold called stBTC on the Mezo L2 network.

In July, the Core Chain team introduced a dual staking model for Bitcoin.