Exploring BitVM and BabylonChain

In this episode of Level Up, hosts David and Sean Farrell speak with David Tse, Co-Founder of Babylonchain, and Ted Breyer of Breyer Capital. David shares how Babylon introduces a trustless, slashable Bitcoin staking primitive—creating a native, self-custodial use case for Bitcoin that expands its utility beyond store of value. Ted offers his perspective as an early investor, reflecting on the protocol's technical depth, market potential, and long-term vision. They discuss Babylon’s role as a security layer for decentralized networks, competitive differentiation, and its emerging ecosystem. Tune in to understand how Babylon could reshape crypto infrastructure by bridging Bitcoin and proof-of-stake systems.

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Key Points From This Episode:

[00:00:00] Introduction to Babylon Protocol and guest intros

[00:01:19] What Babylon does and how it enables Bitcoin staking

[00:03:09] Babylon's uniqueness among staking protocols

[00:05:12] Bitcoin staking market size and opportunity

[00:06:10] Evolution of Bitcoin DeFi use cases

[00:07:52] Babylon's trustless staking design

[00:08:15] Yield dynamics and capital attraction for Bitcoin stakers

[00:09:51] Babylon as a Bitcoin security marketplace

[00:10:17] Babylon Chain as the first Bitcoin-secured network

[00:11:46] Babylon's tokenomics and investor background

[00:13:03] David Tse’s background and vision for Bitcoin use cases

[00:15:00] Ted Breyer’s investing journey and global blockchain experience

[00:18:37] Babylon’s role in enabling decentralized security

[00:19:07] Babylon as a native use case for Bitcoin

[00:20:16] Staking, slashing, and trustless security explained

[00:24:28] Ted’s early impression and conviction in Babylon

[00:27:58] Babylon’s importance as foundational crypto infrastructure

[00:29:09] Technical walkthrough of how Babylon staking works

[00:34:00] Flow of a staking and slashing event in Babylon

[00:36:57] Finality providers and validator structure

[00:38:12] Technical diligence and cryptographic innovation

[00:40:54] Babylon’s design as a complement to proof-of-stake chains

[00:41:34] Ecosystem overview: BSNs, Bitcoin LSTs, and applications

[00:44:08] Liquid staking parallels between Ethereum and Bitcoin

[00:45:25] Babylon’s evolving architecture and ecosystem partners

[00:46:34] Competitive landscape: Babylon vs. other protocols

[00:49:07] The role of BitVM and Babylon’s design choices

[00:51:56] Distinctions from CoreDAO and importance of slashing

[00:54:02] Babylon’s technical moat and team strength

[00:57:37] Adoption metrics and early traction

[01:00:32] Osmosis case study and integration of security and liquidity

[01:01:32] BSN pipeline and upcoming integrations

[01:03:36] Strategies for convincing conservative Bitcoin holders

[01:04:55] Anonymous whale stakes $1B worth of BTC

[01:06:38] Metrics Ted is tracking as an investor

[01:10:11] Role of the BABY token in Babylon Genesis security

[01:13:09] Governance structure and validator incentives

[01:17:41] Final thoughts on catalysts and risks ahead

Links:

The Medici Network

X.com 

LinkedIn 

Co-Hosts

David Grider, Finality Capital

Sean Farrell, Fundstr

Guests   

David Tse, Babylon Protocol

Ted Breyer, Breyer Capital

Production and editing by The Podcast Consultant