Allo, a platform specializing in tokenization and lending of real-world assets (RWA), is transforming Bitcoin into an even more versatile asset for its holders.
The platform has launched a service that allows Bitcoin users to generate returns on their cryptocurrency holdings through staking. In addition, the new service allows Bitcoin to be used as collateral for future financial activities, maximizing the potential of this cryptocurrency.
In a recent statement, Allo explained that its new service is designed to offer Bitcoin holders greater flexibility and utility in the financial ecosystem.
A new approach to Bitcoin staking
Allo has officially become a staking functionality provider for Babylon, a shared security protocol that uses Bitcoin to secure other PoS chains. Through this system, Allo allows users who own Bitcoin to participate in the staking of their cryptocurrencies, allowing them to earn alloBTC liquid staking tokens and various rewards such as Babylon and Allo Points.
The platform highlighted that this protocol is world pioneer, in as much as combines dual staking and lending, offering Bitcoin holders an efficient way to maximize the yield on their digital assets. By staking on Babylon, users not only contribute to the security of PoS chains, but also have the opportunity to access liquidity without needing to sell their bitcoins.
In releaseAllo explained that the lock-up period for Babylon staking is six months, and that Bitcoin holders have traditionally faced this limitation in staking BTC during this time. However, with the innovative protocol the platform has launched, BTC holders can now borrow against their staked Bitcoin, providing liquidity without sacrificing their staking positions.
Stablecoins in the new Allo protocol
Allo’s new protocol will allow users to borrow stablecoins like USDC and BUSD, using their staked Bitcoin as collateral. According to the platform, this feature will be rolled out in the coming months, with the goal of offering a seamless experience for BTC stakers in need of liquidity without having to sell or withdraw their cryptocurrency holdings.
“Allo’s BTC-backed lending service and partnership with Babylon represent a new era for BTC holders. By integrating dual staking and lending (coming soon), the protocol allows users to earn rewards, contribute to blockchain security, and access liquidity without having to sell their assets.”, its developers said.
In short, Allo emphasizes that this service is designed to support Bitcoin holders looking to maximize the utility of their assets through staking, all within a secure, non-custodial ecosystem.
What is Babylon?
Babylon is a shared security protocol that uses Bitcoin to secure other Proof of Stake (PoS)-based chains. By staking BTC on Babylon, Bitcoin holders not only help secure PoS systems but also earn staking rewards. Babylon is non-custodial and self-custodial, meaning BTC holders maintain control of their assets without needing to rely on third parties or oracles.
This staking platform, which was launched at the end of August As reported by this outlet, it has undergone rigorous security audits by industry leaders to ensure that the protocol meets the highest security standards.
Additionally, Allo has partnered with Cobo, a trusted custodian that has secured over $200.000 billion in transactions, to provide secure BTC custody services.
Unlocking the potential of Bitcoin staking and lending
Allo’s BTC-backed lending service, in collaboration with Babylon, marks the beginning of a new era for Bitcoin holders. By integrating dual staking and borrowing, this protocol allows users to earn rewards, contribute to blockchain security, and access liquidity without needing to sell their assets.
With the launch of this service, Allo is therefore transforming Bitcoin into a versatile and valuable asset, offering its users the possibility of generating returns through staking and using their Bitcoin holdings as collateral for future financial activities.
Overall, this is an innovation that not only benefits Allo users, but also drives the growth and stability of the cryptocurrency lending market, offering an attractive and accessible alternative for those seeking liquidity without compromising their Bitcoin investment.
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