10 Top Babylon Chain Rivals for Bitcoin Restaking

Top Babylon Chain Rivals for Bitcoin Restaking is an innovative way to use staked BTC to provide collateral for various decentralized financial (DeFi) services and earn an additional return on investment.

One of the first networks to launch BTC staking, Babylon, has gained a lot of attention because it is one of very few staking networks that does not use wrapped BTC or staking v2 (i.e. liquidity) to provide staking services.

Similar to Babylon, other restaking networks, like EigenLayer, Symbiotic, Karak, etc., are seeking to provide advanced financial services using blockchain technology. Understanding competitors of restaking networks gives insight into the rest of the DeFi networks.

What Is Bitcoin Restaking?

Bitcoin restaking is using staked Bitcoin to secure different protocols. Traditionally, to secure different protocols, you have to stake different cryptocurrencies. Bitcoin restaking enables users to stake Bitcoin once and use it to secure other protocols like rollups or other DeFi applications.

From a network security perspective, restaking can improve security by boosting trust and reducing attack surface area. There can be trade offs when using a restaking service. Some of the risks include; loss of funds because of smart contract attacks, service slashing, and other threats inherent with using a centralized service.

Babylon vs Its Rivals: Key Differences

Protocol	Bitcoin Model	Collateral Type	Security Model	Reward Source	Babylon Difference
Babylon	Native BTC timelock staking	BTC only	Bitcoin base-layer timelocks	Validator fees + staking rewards	Unique in avoiding wrapped BTC or bridges
EigenLayer	ETH-native, WBTC optional	ETH, LSTs, WBTC	Ethereum validators securing AVS	AVS fees + ETH rewards	Babylon is BTC-native, EigenLayer ETH-centric
Symbiotic	ERC‑20 vaults, WBTC supported	Any ERC‑20	Vault managers + Ethereum consensus	Protocol fees + AVS rewards	Babylon is single-asset BTC, Symbiotic multi-asset
Karak	Multi-chain, WBTC/LBTC supported	ETH, LSTs, stablecoins, BTC derivatives	Ethereum + Karak L2 validators	AVS fees + partner incentives	Babylon avoids wrapped BTC, Karak relies on it
Stacks	sBTC smart contracts	STX + sBTC	Anchored via PoX to Bitcoin	STX emissions + BTC yield	Babylon focuses on staking, Stacks on programmability
Rootstock	RBTC (wrapped BTC)	RBTC	Merge-mined with Bitcoin hashrate	Gas fees + DeFi yields	Babylon avoids wrapping, Rootstock requires RBTC
Citrea	ZK rollup via BitVM2	BTC bridged	ZK proofs anchored to Bitcoin	DeFi yields + fees	Babylon is staking-first, Citrea is rollup-first
Merlin	Bridged BTC	BTC bridged	L2 validators	Yield farming + emissions	Babylon trust-minimized, Merlin yield-driven
BOB	Hybrid BTC-Ethereum	BTC bridged + ETH	Dual-chain validators	DeFi yields + Babylon staking	Babylon is base layer, BOB builds on top
Lombard	LBTC liquid staking	LBTC backed by Babylon BTC	Consortium-controlled minting	Babylon staking yields	Babylon is direct staking, Lombard adds liquidity
Solv Protocol	SolvBTC aggregator	BTC + yield strategies	Smart contracts + custodians	Lending, RWA, basis trades	Babylon is native staking, Solv aggregates external yield

Protocol	Key Point
EigenLayer	Largest restaking protocol (~$8.9B TVL), ETH-based collateral, supports Actively Validated Services (AVS).
Symbiotic	Modular vault design, accepts any ERC‑20 collateral, ~$1.6B TVL, flexible service onboarding.
Karak	Multi-chain (Ethereum, Arbitrum, Karak L2), supports ETH, LSTs, stablecoins, WBTC; ~$100M–$740M TVL.
Stacks	Bitcoin-native smart contracts via sBTC; ~$545M TVL, longest BTC DeFi track record.
Rootstock	Merge-mined EVM-compatible sidechain; ~$160M TVL, leverages 84% of BTC hashrate.
Citrea	First BitVM2 ZK rollup on Bitcoin (launched Jan 2026); ~$6M TVL, trust-minimized bridge.
Merlin	Former $1.7B TVL peak, now ~$420M bridged; focuses on BTC yield via emissions tapering.
BOB	Hybrid Bitcoin-Ethereum L2, ~$66M bridged; integrates Babylon staking for cross-chain yield.
Lombard	Issues LBTC liquid staking token backed by Babylon BTC; consortium-controlled minting/redemption.
Solv Protocol	Aggregates BTC yield strategies (lending, RWA, basis trades) into SolvBTC token; composable yield aggregator.

1. EigenLayer

EigenLayer is the first-ever restaking protocol on Ethereum, launched in 2023. It uses ETH and liquid staking tokens (LSTs) to gain exposure to actively validated services (AVS) through a process known as rehypothecation.

Unlike Babylon, which is collateralized by Bitcoin, EigenLayer is collateralized by WBTC, and the protocol can be expanded to support other collateral as well. EigenLayer gains revenue from the AVS and distributes them to stakers.

Unlike Babylon, EigenLayer focuses on securing ETH via AVS and charges fees based on that. Similar to Babylon, EigenLayer supports a suite of products including bridges and middleware. Babylon supports staking of BTC, whereas EigenLayer supports staking of ETH. As of now, EigenLayer has more staked value than Babylon.

Best-Fit Use Cases

• Actively-validated Services (AVS)
• LST/ETH collateral flexibility
• DeFi middleware (brides/oracles)
• ETH stacking
• Validator foundation for institutions

Limitations

• No direct integration for Bitcoin
• Slashing of rehypothecated assets
• Complex AVS processing
• Bitcoin expedience via Ethereum

2. Symbiotic

Launched in 2024, Symbiotic is a modular restaking protocol on Ethereum. Symbiotic uses similar principles to Babylon and EigenLayer. Symbiotic has a flexible design to support various services through its vaults and gains revenue through fees and AVS.

Like Babylon, Symbiotic supports staking of multiple assets and relies on Ethereum validators for security. Differences in fees are determined by the vault manager. Symbiotic’s focus is flexibility and composability of products, while Babylon is focused on staking of Bitcoin via bridgelessintegration.

Best-Fit Use Cases

• Restaking of stablecoins, ETH and WBTC
• Flexible vaults for various services
• Amplifying DeFi protocols
• Del бриалсстк брст expanding to various assets
• Advanced vault management

Limitations

• Achieving Bitcoin functionality through intermediaries
• Vault management
• Scattered liquidity
• Less developed status compared to EigenLayer

3. Karak

Karak is a multi-chain restaking protocol, focused on Ethereum and its Layer 2 Chains, launched in 2025. It supports staking of ETH, LSTs, and stablecoins. Similar to EigenLayer and Babylon, it provides staking services for AVS, and gain fees through that. Security is provided by validators on Ethereum and Karak’s Layer 2.

The main difference between the two is that Babylon allows users to stake their BTC directly, whereas users of Karak must use wrapped BTC. Fees on AVS drive Karak’s incentives, and the company focuses on providing cross chain services.

However, Karak allows users to engage in staking across multiple blockchains. Babylon provides users with a lower risk alternative, as users do not have to stake BTC in a custodial manner like with other staking solutions.

Best-Fit Use Cases

• Restaking on Karak L2 and other AVS on Arbitrum
• BTC and BTC-related derivatives
• Yield stacking and other incentives on partner protocols
• Cross-chain validator incentives

Limitations

• Dependence on wrapped BTC
• Intrinsic complexities of a multi-chain ecosystem
• Still immature Ecosystem
• Variable fees

4. Stacks

Stacks allows users to stake sBTC, which is issued via the Stacks blockchain, and processes smart contracts. Like Babylon, Stacks’ security is derived from the Bitcoin blockchain. Its models differ in that Stacks uses Proof of Transfer (PoX) for security.

Stacks allows users to earn rewards, like Babylon, via BTC staking. However, Babylon focuses on staking and provides users with a lower risk alternative. Stacks focuses on providing programmability and smart contracts to its users.

Best-Fit Use Cases

• Bitcoin smart contracts
• BTC DeFi and NFTs
• STX PoX staking
• Programmability of BTC

Limitations

• Requires wrapped BTC
• Intractable scalability
• Decreasing STX emissions
• Lack of composability with Ethereum DeFi

5. Rootstock

Rootstock uses EVM compatibility to extend smart contract functionality to Bitcoin. It uses merge-mining to achieve high security. Like other projects, BTC is wrapped to be used on the sidechain.

Babylon uses timelock mechanisms to support native BTC staking whereas Rootstock uses merge-mining. Babylon focuses on staking while Rootstock aims for Bitcoin-backed smart contract functionality.

Best Fit Cases

• A sidechain of Bitcoin, compatible with the EVM and with merge mining.
• DeFi protocols and applications (Rbtc)
• Using Bitcoin’s hashing power.
• Similar programmability to Ethereum with Bitcoin.
• Cross chain bridges to Ethereum.

Limitations

• Use of wrapped Rbtc.
• Similar gas costs to Ethereum.
• Bridges are centered and trust-experience.
• Less adoption of Ethereum DeFi.

6. CITREA

CITREA was the first ZK rollup to launch on the Bitcoin Network using BitVM2, in 2026. It implements trust-minimized bridge and contract functionality. It provides reward opportunities from DeFi and transaction fees. It utilizes ZK proofs for security.

BABYLON offers native BTC staking and therefore competitive advantages over CITREA. CITREA aims for scalability and programmability. Both projects have similar fee structures and the ecosystems are similarly developed.

Best Fit Cases

• Zk rollups on Bitcoin for cross chain bridges.
• Smart contracts and DeFi on Bitcoin.
• Experimenting with Zk Proofs.

Limits

• New ecosystem launch (2026).
• Lack of developer and user adoption.
• Low TVL (6 Million USD).
• Technical complexity of Zk rollups.

7. MERLIN

MERLIN was launched in 2024 and focuses on yield farming on Bitcoin L2. It had a TVL of 1.7 billion and is currently at 420 million. It uses a variable emissions model to provide rewards and bridges BTC to its L2 for use in DeFi.

MERLIN and BABYLON both offer yield and/or staking, with MERLIN focusing more on yield. BABYLON offers the first trusted staking contract on Bitcoin L2, as validators of the MERLIN L2 are assumed to be trusted.

Best Fit Cases

• Bridged Bitcoin DeFi.
• Yield farming.
• Liquidity and BTCSXL mining.
• Lending and other financial services.

Limitations

• Tapering of emissions.
• Assumptions on validator security.
• Reduced TVL (1.7 billion to 420 million).

8. BOB

BOB was launched in 2025 and is a hybrid Bitcoin-Ethereum L2. It offers trust-minimized staking contracts of BTC using the infrastructure of the Babylon project. It also provides rewards from DeFi. BTC is bridged to the L2.

Babylon provides core staking infrastructure, and BOB provides programmability on top of Babylon. Transaction fees are network fees, and the ecosystem supports DeFi and DeX. With core staking of BTC, Babylon offers BTC staking. BOB provides programmability with smart contracts.

Best Fit Cases

• Cross chain DeFi with Bitcoin.
• Bridging Bitcoin with Ethereum.
• Cross chain programs with Bitcoin and Ethereum.
• Institutions.

Limitations

• Depends on Bitcoin that is secured by a bridge.
• Depends on Babylon for staking.
• Still growing project.
• Variable costs for transactions.

9. Lombard

Lombard released its liquid staking token LBTC in 2025, backed by Babylon’s BTC staking. Tokens can be minted and redeemed by consortium members. LBTC stakers earn staking rewards.

Liquid staking is implemented by Lombard on top of Babylon staking. Fees are charged for minting and redeeming staked tokens. DeFi services are integrated. Liquid staking allows for staking as well as unstaking of tokens. Babylon provides staking of BTC.

Best Fit Cases

• Liquid staking of Bitcoin.
• Participation in DeFi.
• Staking via Babylon.
• Composability of DeFi.

Limitations

• Risk of a centralized control of the consortium.
• Complete dependence on Babylon staking.
• Limited level of decentralization.
• Potential bottlenecks during the redemption process.

10. Solv Protocol

Solv Protocol launched in 2024, and offers BTC yield farming through SolvBTC. Earnings are from RWA and basis trading. Farming is backed by smart contracts and trusts.

Babylon provides native staking of BTC. Solv allows staking and farming of BTC through different nodes and pools. Fees are charged by Solv for yield farming.

Best-Fit Use Cases

• Combining BTC yield farming strategies.
• Obtaining SolvBTC for DeFi composability.
• Offering yield to institutions (RWA and basis).
• BTC Lending and Borrowing.
• Yield farming BTC.

Limitations

• Risks of centralization.
• Depends on external sources for yield.
• non-native BTC staking.
• broad risk exposure.

Bitcoin Staking vs Liquid Staking vs Restaking

Model	Definition	Collateral Type	Rewards	Security Model	Key Difference
Bitcoin Staking	Locking native BTC in timelocks to secure protocols or earn yield.	Native BTC only	Validator fees + staking rewards	Bitcoin base-layer timelocks	Direct BTC staking without wrapping or derivatives
Liquid Staking	Staking assets while receiving a liquid token (e.g., LBTC, stETH) for use in DeFi.	BTC derivatives or LSTs	Staking rewards + DeFi yields	Smart contracts + custodians	Provides liquidity and composability but adds custodial risk
Restaking	Reusing staked assets across multiple protocols to extend security and earn extra yield.	BTC, ETH, LSTs, WBTC	AVS fees + protocol rewards	Validators + slashing conditions	Capital efficiency by securing multiple services simultaneously

Conclusion

Bitcoin restaking has the potential to improve the use and delivery of financial services. Babylon Chain has unique technology that allows users to stake BTC in a timelock contract. Other competitors have focused on ETH and other assets.

Programmability through Bitcoin is offered by the Stacks, Rootstock and Citrea networks. Other competitors like Merlin, BOB, Lombard, Solv Protocol, and Rest have focused on building liquidity and yield farming systems. These competitors differ from Babylon because they are not focused on using the Bitcoin base layer for their restaking services.

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