Making Bitcoin Productive for Ethereum using Trustless Vaults
summary
Babylon reports 56,000 BTC already on its Bitcoin Stacking Protocol and now implements a Trustless Bitcoin Vault that uses ZK proofs plus an off‑chain verifier and an optimistic challenge game to let native BTC act as collateral on Ethereum lending rails. A 6‑week proof‑of‑concept wires Bitcoin mainnet vaults to a Morpho market, deposits ~9,000 satoshis, and executes challenge and liquidation flows via HTLCs and a garbled‑circuit‑authenticated verifier; demo runs live on Bitcoin and Ethereum mainnets.
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chapters (13)
- 0:00Trustless Bitcoin vaults
- 1:51Bitcoin’s unproductivity
- 3:57Trusted intermediaries fail Bitcoiners
- 5:24Trustless Bitcoin participation
- 6:48Math behind cross-chain trustlessness
- 8:57Trustless Bitcoin vaults
- 9:41Bitcoin back as killer app
- 13:37Proof of concept overview
- 14:18Deposit flow in experiment
- 15:41Repayment and liquidation flows
- 17:29Bitcoin and zero-knowledge proofs
- 20:21Hash Time Lock Contracts
- 21:05Future of Bitcoin-Ethereum integration
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