The integration of SatLayer with Sui marks a pivotal moment in the evolution of Bitcoin DeFi—commonly referred to as BTCfi. As the leading Bitcoin restaking platform, SatLayer is set to bring Bitcoin’s unmatched liquidity and security model directly into the Sui ecosystem, unlocking powerful new tools for developers and users alike. With Bitcoin’s market cap hovering near $2 trillion, this collaboration opens the door to a new era of decentralized finance built on the most secure blockchain in existence.
This strategic move positions Sui as a premier destination for BTCfi innovation, combining Bitcoin’s robustness with Sui’s high-speed, scalable infrastructure. By integrating SatLayer—a designated restaking partner of Babylon—Sui strengthens its role in the next generation of blockchain interoperability and capital efficiency.
Bridging Bitcoin’s Security with Sui’s Performance
Bitcoin has long been recognized for its security and decentralization, but its functionality has traditionally been limited compared to programmable blockchains like Ethereum or Sui. SatLayer changes that by enabling Bitcoin restaking, allowing apps and infrastructure such as bridges, decentralized exchanges (DEXs), and oracles to inherit Bitcoin’s security through cryptographic validation.
SatLayer achieves this by deploying smart contracts on Babylon Chain, which allows for fully programmable slashing conditions with minimal trust assumptions. This means developers can build secure, trust-minimized applications on Sui while leveraging Bitcoin’s consensus power—bringing Bitcoin restaking to functional parity with Ethereum-based restaking solutions.
👉 Discover how next-gen restaking is transforming DeFi across blockchains.
Expanding BTCfi Primitives Across the Move Ecosystem
As part of the integration, SatLayer will collaborate with top-tier projects within the Sui ecosystem, including Navi, Suilend, Cetus, Aftermath, and Ika. These partnerships aim to co-develop use cases for SatLayer’s Bitcoin Validated Services (BVS) framework, showcasing how Bitcoin’s security can be embedded into lending protocols, trading platforms, and cross-chain infrastructure.
By introducing BVS to the broader Move developer ecosystem, this initiative empowers developers to create applications secured not just by Sui’s native validators, but also by Bitcoin stakers via Babylon. This dual-layer security model significantly raises the bar for protocol safety and user trust.
“Sui’s move into Bitcoin DeFi points to Sui Foundation’s commitment to be a destination for BTCfi,” said Jameel Khalfan, Global Head of Ecosystem at Sui Foundation. “The combination of Bitcoin’s size and security with Sui’s speed and scalability gives developers and users new possibilities to build on Bitcoin. We couldn’t be more excited.”
Unlocking Liquidity with Bitcoin LSTs and LRTs
A core component of SatLayer’s strategy involves leveraging Bitcoin Liquid Staking Tokens (LSTs) to enhance capital efficiency across Sui. In partnership with protocols like Lombard Finance and Lorenzo Protocol, SatLayer will enable seamless issuance and utilization of LSTs, representing staked Bitcoin positions that remain liquid and usable in DeFi.
These LSTs will serve as foundational assets for Liquid Restaking Tokens (LRTs)—a more advanced form of yield-bearing, composable tokens that can be used across multiple protocols while maintaining exposure to Bitcoin staking rewards.
This layered approach allows Sui-based applications to tap into Bitcoin’s deep liquidity pool without requiring native Bitcoin scripting capabilities. For users, it means greater access to secure yield opportunities backed by real staking activity on the Bitcoin network.
Luke Xie, Co-Founder and CEO of SatLayer, emphasized the significance: “Sui is the perfect Layer 1 blockchain to utilize Bitcoin’s unmatched security and liquidity. Starting with Bitcoin restaking and expanding into BTC liquidity for applications and infrastructure, this collaboration opens up incredible possibilities for Sui’s builders and users.”
👉 See how liquid restaking is redefining capital efficiency in DeFi.
A Unified Vision for a Bitcoin-Secured Future
Fisher Yu, CTO of Babylon Labs, highlighted the broader implications: “We’re excited to play a key role in bringing Bitcoin to Sui. By combining BabylonBitcoin staking with SatLayer’s restaking framework, the Sui ecosystem now has the building blocks for a powerful onchain Bitcoin DeFi ecosystem. It is a big step towards our vision of a Bitcoin-secured decentralized world.”
This integration builds upon earlier momentum from November 2024, when Babylon, Lombard Finance, and Cubist announced plans to launch native Bitcoin staking on Sui—a development that signaled growing institutional interest in merging Bitcoin’s value layer with modern smart contract platforms.
With SatLayer now acting as Babylon’s exclusive restaking partner, the path forward includes not only securing DeFi protocols but also enabling novel financial instruments such as:
- Cross-chain bridges protected by Bitcoin validators
- Yield-bearing stablecoins backed by Bitcoin staking derivatives
- Insurance protocols with slashing enforcement tied to Bitcoin consensus
Frequently Asked Questions (FAQ)
Q: What is Bitcoin restaking?
A: Bitcoin restaking allows users to stake their Bitcoin (via liquid staking tokens) and then reuse those tokens to secure additional blockchain networks or applications—effectively extending Bitcoin’s security beyond its native chain.
Q: How does SatLayer enhance DeFi on Sui?
A: SatLayer brings programmable access to Bitcoin’s security and liquidity through restaking. This enables Sui-based apps like DEXs and lending platforms to offer safer, more capital-efficient services backed by one of the most secure proof-of-work networks.
Q: Are Liquid Staking Tokens (LSTs) safe to use in DeFi?
A: When issued by reputable protocols like Lombard Finance or Lorenzo Protocol, LSTs are designed with strong economic and cryptographic safeguards. Their integration with restaking frameworks like SatLayer adds an additional layer of accountability via slashing mechanisms.
Q: Can developers on other chains benefit from this integration?
A: While initially focused on Sui, the modular design of Babylon and SatLayer means similar integrations could expand to other Move-based or EVM-compatible chains in the future.
Q: What are Liquid Restaking Tokens (LRTs)?
A: LRTs are upgraded versions of LSTs that can be restaked across multiple networks or protocols while maintaining liquidity. They represent a major leap in composability and yield optimization within decentralized finance.
Q: Is this integration live now?
A: The technical foundation is being deployed, with full functionality expected in phases throughout 2025. Key partners are already testing early implementations within testnet environments.
👉 Stay ahead of the curve with cutting-edge insights into restaking and BTCfi innovations.
Final Thoughts
The convergence of Bitcoin’s security model with Sui’s high-performance architecture represents a transformative leap for decentralized finance. With SatLayer at the helm of this integration, BTCfi is no longer a theoretical concept—it’s becoming a functional reality.
For developers, this means access to a new suite of primitives secured by Bitcoin. For users, it offers safer protocols, diversified yield strategies, and deeper engagement with the world’s most trusted digital asset.
As the lines between blockchains blur and value flows more freely across ecosystems, initiatives like SatLayer’s integration with Sui exemplify the future of interoperable, secure, and scalable DeFi—powered by Bitcoin.