🧵 Protocol of the Day: @babylonlabs_io
Babylon lets Bitcoin holders stake $BTC to secure Proof-of-Stake chains, trustlessly, self-custodially, and without wrapping or bridging.

✅ Pros:
• True self-custody—$BTC stays in users’ wallets, no wrapping or third parties
• Dual-use protocol—offers both $BTC staking and timestamping to secure PoS chains
• Audited and tested—reviewed by Coinspect, Zellic, and Cantina, with no recorded exploits
• Top 5% by TVL—rapid adoption and growing role in BTC-enabled DeFi

⚠️ Risks:
🔸 Slashing risk – $BTC can be partially slashed if validators misbehave on PoS chains
🔸 Architectural complexity – Uses Cosmos SDK and multiple modules, increasing operational risk
🔸 Validator trust assumptions – Relies on finality providers and delegated validator sets