stBTC: Tokenization of Babylon Bitcoin Staking

After Bitcoin liquidity has been staked into Babylon, Lorenzo issues Liquid Staking Token (LST): stBTC. stBTC holders receives Yield Accruing Tokens (YAT), which contains staking yields and also Lorenzo Points.

stBTC: The Babylon staking LPT

LPTs do not have to be in the same form for Bitcoin staking, but Lorenzo promotes stBTC, the LPT for Babylon staking. Using stBTCs, if a user stakes 10 BTCs, for example, to a non-slashable PoS chain in the Babylon ecosystem, Lorenzo will return the user 10 stBTCs. The user will later use the 10 stBTCs to reclaim the staked principle of 10 BTCs.