SatLayer, a platform for restaking Bitcoin, announced on Wednesday that it is expanding into decentralized finance (DeFi) by integrating with Sui. Sui is a fast layer-1 blockchain that launched last year.

This integration allows developers to tap into Bitcoin’s massive $2.1 trillion market for building DeFi applications. These applications aim to cut out third parties in transactions like trading and lending.

Currently, Sui is already home to a growing DeFi ecosystem. A recent report from Electric Capital noted that 150 full-time developers were working on Sui in 2024.

Jameel Khalfan, Sui Foundation’s Global Head of Ecosystem, shared with Decrypt that SatLayer’s introduction could offer developers more tools to work with.

He said, “The combination of Bitcoin’s size and security with Sui’s speed and scalability gives developers and users new possibilities to build on Bitcoin.”

With this integration, developers can secure decentralized applications using Bitcoin on Sui’s layer-1. Meanwhile, SatLayer operates on Babylon, which aims to provide security for proof-of-stake networks by offering users a yield for locking up their Bitcoin.

Last month, SatLayer formed an alliance with Babylon Labs. This partnership positions SatLayer to enhance Babylon’s security offerings, focusing on decentralized applications and infrastructure, such as bridges, rather than just proof-of-stake networks.

SatLayer’s integration with Babylon also introduces “fully programmable slashing” to the staking protocol. In this context, slashing refers to penalties for validators who act maliciously or negligently.

Babylon operates like a two-sided marketplace. Users can lock up their Bitcoin in exchange for rewards, while proof-of-stake networks use that capital to ensure security.

So far, 57,300 BTC, worth about $6 billion, has been committed to Babylon Chain, according to data from a dashboard created by Babylon Labs.

Restaking became popular last year thanks to EigenLayer, an Ethereum-focused protocol that allows users to rehypothecate their staked Ethereum for extra yield. SatLayer mirrors EigenLayer’s main use case but focuses on Bitcoin.

Earlier this month, Binance announced its support for Babylon staking through its “On-chain Yields” product. This falls under Binance Earn, which the company describes as a high-risk product with a variety of supported protocols.

In a May funding round led by Paradigm, Babylon raised $70 million, with participation from Galaxy. Meanwhile, SatLayer raised $8 million in an August funding round, with support from Franklin Templeton.

In other news, World Liberty Financial (WLFI), backed by Donald Trump, recently expanded its portfolio by investing $5 million in three major assets: Ethereum (ETH), Chainlink (LINK), and Aave (AAVE). The project acquired 2,631 ETH at $3,801 each, 41,335 LINK at $24.2, and 3,357 AAVE at $297.8. This marks WLFI’s first investments in LINK and AAVE.

Additionally, Superform, a crypto yield marketplace, launched SuperUSDC on Wednesday. This product offers a high yield opportunity on Circle’s stablecoin with minimal management. Since its early access launch this year, Superform has served as a decentralized marketplace for yield protocols. Projects can list vaults linked to yield opportunities on Ethereum and scaling solutions like Arbitrum or Base.

Finally, Solana’s decentralized exchange aggregator, Jupiter, is preparing to distribute JUP tokens to its community over the next two Januarys. This follows the approval of a revised airdrop proposal by the Jupiter DAO after a previous attempt to distribute $1.7 billion worth of tokens failed. The second proposal received over 87% approval, a significant increase from the 58% support of the first proposal, which did not meet the required 70% threshold for approval.