Nomic, the layer 1 blockchain in the help of a non-custodial bitcoin bridge, is betting on a surge in pastime around bitcoin liquid staking alternatives.

Nomic on Wednesday acknowledged it plans to roll out a bitcoin (BTC) liquid staking token interior the Cosmos ecosystem through an integration with Babylon, a staking protocol on the Bitcoin network.

Liquid staking tokens (LSTs) through Tuesday commanded about $54 billion of total price locked (TVL) —  supreme for the discontinue put among DeFi applications, per DeFiLlama recordsdata. Investors had been drawn to the possibilities of earning staking yield and dabbling in DeFi protocols on the the same time.

Read more: How Liquid Staking Works

Cosmos customers will most certainly be in a position to stake their BTC through Nomic’s bridge to accomplish yield and withhold liquidity of their staked sources. Generally, staking BTC locks the asset for a specified time-frame.

Nomic’s procedure items a loophole of kinds, permitting customers to tap their staked BTC for deployment in decentralized finance (DeFi) protocols which would be delight in minded with Cosmos’ inter-blockchain communications (IBC) technology protocol.

Cosmos’ IBC protocol enables a lot of blockchains interior the Cosmos ecosystem to mumble with every a lot of. One example: executing a transfer between blockchains through IBC.

The Nomic setup is designed, per a Tuesday observation, in divulge that stakers of BTC on Nomic will accomplish rewards dominated in Nomic’s native token, NOM, and nBTC, an IBC-delight in minded token issued by Nomic that represents 1-to-1 ownership of BTC.

Moreover to offering BTC holders a a lot of yield movement, stBTC, besides staked NOM, will stable Nomic’s layer 1 blockchain.

“With enhancements delight in stBTC rising, Bitcoin DeFi now has the aptitude to compete with the shopping and selling volumes and total price locked of Ethereum DeFi,” acknowledged Matt Bell, CEO of Turbofish, Nomic’s founders and core contributors, in an announcement.

Nomic has not released stBTC on mainnet, with customers easiest in a position to experiment with the performance of the BTC liquid staking token on Nomic’s test network, the observation acknowledged.