Opportunity Overview

Allo has officially become a Babylon Staking Finality Provider, allowing users to stake Bitcoin, earn liquid staking token alloBTC & rewards in the form of Babylon points & Allo Points. This groundbreaking protocol is the world’s first to combine dual staking and borrowing (coming soon), offering Bitcoin holders an efficient way to make the most of their assets.

The lockup period for Babylon staking is six months, and Bitcoin holders have traditionally faced limitations in utilizing their staked BTC during this time. With Allo's innovative protocol, users can now borrow against their staked Bitcoin, providing liquidity without sacrificing their staking positions.

The Staking Protocol

The Allo platform allows users to stake their BTC into Babylon’s shared security system, which enhances the security of Proof-of-Stake (PoS) chains. In return, stakers earn liquid staking tokens such as alloBTC with Babylon & Allo points, while contributing to the stability of PoS ecosystems. The protocol also enables users to borrow stablecoins such as USDC, BUSD, etc. against their staked BTC. This feature will be rolled out later in 2024, creating a seamless experience for stakers who need liquidity without having to sell or withdraw their Bitcoin holdings.

The facility is designed to support Bitcoin holders who want to maximize the utility of their assets through staking, all within a trustless (non-custodial) and secure ecosystem.

Babylon Staking: What You Need to Know

Babylon is a Shared Security Protocol that uses Bitcoin to secure other PoS chains. By staking BTC in Babylon, Bitcoin holders not only help protect PoS systems but also earn staking rewards. Babylon is trustless and self-custodial, meaning that BTC holders maintain control of their assets without needing to rely on third parties or oracles.

Babylon has undergone rigorous security audits by industry leaders Zellic and Coinspect, ensuring that the protocol meets the highest standards of safety. Allo has partnered with Cobo, a trusted custodian that has secured over $200 billion in transactions, to provide safe BTC custody services.

Looking Ahead: Unlocking the Potential of Bitcoin Staking and Borrowing

Allo’s BTC-backed lending facility and partnership with Babylon represent a new era for Bitcoin holders. By integrating dual staking and borrowing (coming soon), the protocol allows users to earn rewards, contribute to blockchain security, and access liquidity without having to sell their assets.

Stay tuned for further updates as Allo continues to redefine the potential of Bitcoin in the DeFi ecosystem.

Allo Beta Platform is Live

The Allo beta platform is now live, offering users early access to the staking protocol. Users can stake their BTC, earn alloBTC, Babylon & Allo points, and soon explore borrowing options in a secure, streamlined interface.

Visit the beta platform to get started https://btc.allo.xyz/

Disclaimer: The information provided in this document does not, and is not intended to, constitute legal, tax, investment, or accounting advice; instead, all information, content, and materials available are for general informational or educational purposes only and it represents the personal view of the author. Please consult with your own legal, accounting or tax professionals. This post is for informational purposes only and contains statements about the future, including anticipated product features, development, and timelines for the rollout of these features. These statements are only predictions and reflect current beliefs and expectations with respect to future events; they are based on assumptions and are subject to risk, uncertainties, and changes at any time. There can be no assurance that actual results will not differ materially from those expressed in these statements, although we believe them to be based on reasonable assumptions.