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In August 2024, the launch of Babylon Protocol introduced the possibility to stake Bitcoin (BTC) and earn passive income from it while maintaining the self-custody security standard. Now, protocols like the Pell Network create another liquidity layer, introducing Bitcoin restaking in an omnichain approach. Finbold has also covered other ways investors can earn passive income with crypto, even getting rewarding exposure to the U.S. dollar. We have also reported on how Cardano is integrating Bitcoin natively to its decentralized finance ecosystem (DeFi), unlocking some doors to BTC staking. Passive income with Bitcoin staking via Babylon Protocol Interestingly, Babylon is gaining popularity thanks to its novel approach to BTC staking using programmable Features of the Bitcoin blockchain. The protocol leverages Bitcoin timestamps to lock BTC units in a self-custody wallet under two potential triggers. ...

How Liquidity Pools Work: A Beginner’s Guide! Liquidity pools are a fundamental building block of decentralized finance (DeFi) ecosystems. They enable automated trading, lending, and other financial services without relying on traditional intermediaries like banks or brokers. Here’s an in-depth look at how liquidity pools work and why they matter. What Are Liquidity Pools? Liquidity pools are smart contract-based reserves of tokens locked in a decentralized protocol. These pools are designed to facilitate trading, lending, and earning opportunities on decentralized exchanges (DEXs) and other DeFi platforms. In essence, a liquidity pool is a shared pot of assets contributed by users called “liquidity providers” (LPs). These assets are used to support transactions and provide liquidity to the market. How Do Liquidity Pools Work? 1.  Token Pairs and Balancing These token pairs are balanced using an automated market maker (AMM) algorithm, like the constant product fo...