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.

Bitcoin Liquid Staking Plan (BLSP)

A Bitcoin Liquid Staking Plan (BLSP) represents the project to be staked to and its staking rules. Staking cycle is the time that the staking plans are executed and staked. Every staking plan in Lorenzo has the same fixed staking cycle so that rewards from different staking plans can be claimed at once. For example, Babylon-Lorenzo-01 is a BLSP that stakes liquidity to Babylon and Lorenzo. Its associated staking rule is that, when staking to Babylon-Lorenzo-01, stakers receive the same amount of stBTCs as the BTCs they stake and the YATs will accrue yield from Babylon and Lorenzo at maturity. YATs are issued by BLSP, every BLSP contains the following information and all the YAT tokens issued by the same BLSP are fungible.

{
    name: YAT token name
    symbol: YAT token ticker
    planDescUri: project description
    planId: stakePlanId, incremental ID for staking plan
    agentId: stakeAgentId, Staking Agent ID
}

Liquid Principal Token (LPT)

Liquid Principal Tokens represent the staked Bitcoin in Babylon and the right to claim BTC when unstaking from Babylon.

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.

Yield Accruing Token (YAT)

Yield Accruing Tokens is the wrapper of staking yields by holding LPT. Each YAT accrues yield from Bitcoin staking. YAT are ERC-20 tokens issued by staking to a BLSP.

Since both LPTs and YATs can be traded, anyone who owns the YAT and the LPT could use them separately to claim yield and withdraw staked BTC.