Nexus Mutual and Babylon To Float Staking Protection Product

Nexus Mutual, a leading crypto insurance alternative, has developed a slashing protection product for Bitcoin-based Babylon Proof-of-Stake (PoS) mechanism. Notably, Babylon Labs has no direct participation in the cover product but will be responsible for advising on the development. Babylon’s Slashing Protection and Benefit for Bitcoin Stakers According to Nexus Mutual and Babylon, several cover options will be “tailored to all of the different participants” on the Babylon network. This slashing protection will include individual stakers and institutions. In the long run, the focus is on helping Bitcoin stakers go through the staking process with ease and “greater peace of mind.” By design, Babylon heavily relies on Bitcoin’s PoS security model’s capacity to power a more flexible PoS system that can support smart contracts. Such PoS systems also rely on a concept known as slashing. Slashing and Bitcoin Stakers Ordinarily, the Babylon protocol offers stakers rewards for locking up their funds, which is then invested into achieving economic security. Slashing is a penalty mechanism that withholds a part of the tokens staked by the validator. However, this only happens when a validator exhibits malicious or negligent behavior, such as double-signing or being offline. The companies claimed that the process is theoretically designed to improve stakeholder participation, but they still pointed out that slashing has its failure models. Clayton Menzel, Babylon’s head of BD, noted that this slashing protection benefits Bitcoin stakers. “This collaboration supports our mission of unlocking bitcoin to secure the decentralized economy, offering bitcoin holders a way to participate in staking with greater peace of mind,” Menzel stated. Babylon Launches Genesis Mainnet It has been over two weeks since Babylon pitched the launch of its “Genesis” mainnet . This is the second stage in a three-part “phased” staking solution rollout , as the first phase was rolled out in 2024. With this staking protocol, Babylon has already generated over $4 billion in Total Value Locked (TVL). Fisher Yu, Babylon co-founder, noted that Bitcoin’s “security has been limited to the Bitcoin network itself.” He further touted Genesis as a solution to this shortcoming, claiming that Bitcoin is on its way to evolving from an underutilized asset into a dynamic cornerstone of the broader digital economy. The post Nexus Mutual and Babylon To Float Staking Protection Product appeared first on TheCoinrise.com .

Source: The Coin Rise