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#1490 David Tse | How To Safely Get Yield On Your Bitcoin

2/20/2025 · 32 min · transcript via mlx

Guests

Tags

Key topics

— David Tse, co-founder of Babylon Protocol, explains Bitcoin's two native use cases: payment system and store of value, and is building a third use case through Bitcoin staking.

— Bitcoin staking enables holders to lock Bitcoin (with a seven-day unbonding period) to secure other blockchains without surrendering custody or trusting intermediaries.

— Babylon has bootstrapped over 130,000 Bitcoin addresses with approximately $5.5–6 billion in total value locked since mainnet launch in August 2024.

— Bitcoin-secured networks represent a new ecosystem design where proof-of-work Bitcoin security underpins proof-of-stake applications, bridging two previously separate worlds.

— Tse's vision emphasizes removing trust in institutions and humans by expanding code-based trustlessness beyond payments to yield generation and network security.

Market & price signals

— None discussed.

Actionable insights

— Bitcoin staking on Babylon offers low single-digit yield returns with minimal risk compared to traditional DeFi, positioning it as a conservative income strategy for long-term holders already accumulating Bitcoin.

— Early stakers should understand the seven-day unbonding window and 15-month maximum lock duration are protocol parameters designed to balance security and liquidity—not custodial restrictions.

— Babylon's modularity allows new blockchains to add Bitcoin security on top of native assets, suggesting future multi-chain strategies may benefit from Bitcoin-backed security layers as institutional interest grows.

Episode sponsorships

Paid placements mentioned in this episode. BTC Pods is not sponsored by or affiliated with these advertisers. Links are included so you can find offers mentioned on the show.

— No sponsorships in this episode.