According to Foresight News, AI-native liquidity infrastructure project Deluthium has announced a strategic partnership with Bitcoin productivity project Babylon Labs. The collaboration aims to address a critical gap in the DeFi ecosystem by providing trustless liquidity for native Bitcoin. By integrating Babylon's cryptographic vault mechanism with Deluthium's reinforcement learning (RL) execution system, the partnership seeks to enable efficient and secure on-chain trading and settlement of native BTC, reducing reliance on centralized custody and cross-chain bridges.
Babylon Labs has introduced the Trustless Bitcoin Vault, which utilizes pre-signed transactions and the BitVM3 fraud-proof mechanism. This allows BTC holders to perform verifiable collateralization and locking on the Bitcoin main chain without the need for bridging or third-party custody. Building on this foundation, Deluthium will implement an RL model-driven liquidity execution infrastructure. This development will allow native BTC to move beyond its traditional roles of staking or locking, enabling participation in on-chain smart liquidity routing, trading coordination, and strategy scheduling, thereby integrating into the modular DeFi execution layer.
Anais
