Dual Staking
The infrastructure for sustainable BTCFi
Last updated
The infrastructure for sustainable BTCFi
Last updated
b14g is a modular dual-staking for Bitcoin. It enables protocols to secure their networks by pairing their native tokens with BTC, solving the common issue of token inflation and sell-pressure from existing BTC (re)staking models.
Dual-staking is central to b14g’s approach to turning Bitcoin into a productive asset and scaling the BTCFi ecosystem. It offers a flexible security layer that can support a wide range of decentralized applications.
Importantly, users always maintain full custody of their BTC, ensuring a non-custodial Bitcoin dual-staking experience.
Stakers - Entities seeking to earn rewards by committing both Bitcoin and the protocol's native token. This group includes individual token holders, institutional investors, and liquid (re)staking protocols. Stakers lock their Bitcoin on the Bitcoin network and stake their native tokens on the EVM chain, contributing dual collateral to the network's security.
Actively Validated Service (AVS) - Any decentralized system requiring economic security to operate reliably. This can include Layer 1 blockchains, Layer 2 scaling solutions, or other decentralized applications that benefit from stake-based security guarantees. For example, a lending protocol might use the b14g operator network to execute liquidations. Similarly, a new blockchain could utilize b14g operators as validators to secure its network. Each AVS defines the tasks required of operators and the associated reward and penalty mechanisms.
Operators - They are individuals or organizations that run the specific tasks required by an AVS. In return for their services, operators receive rewards. However, they are also subject to penalties, or slashing, if they fail to perform their tasks correctly or act maliciously. The role of an operator varies depending on the AVS. For a lending AVS, operators would execute the liquidation of undercollateralized assets. For a blockchain AVS, operators would function as validators, confirming transactions and producing new blocks.
A key aspect is the focus on trust and safety for BTC holders. There is no bridging, no wrapping, and no slashing of BTC. BTC is time-locked non-custodially in the user's own wallet. Only the native token gets slashed in case of penalties. This non-custodial approach is crucial for unlocking broader participation from BTC holders who prioritize not risking their Bitcoin.
b14g provides a Dual-Staking Module that allows protocols to customize and integrate without building it from scratch. The solution allows for flexibility, including adjusting the BTC-to-token staking ratio, setting custom yield tiers, and aligning incentives with a protocol's specific goals.
b14g connects Stakers, Operators, and AVSs through a modular infrastructure built around two core components: Delegation Manager and Liquid Stake Manager.
The Delegation Manager is the coordination hub of b14g’s staking layer.
For stakers: Delegation Manager verifies BTC lock proofs, accepts native token deposits, and delegates both to chosen operators. When stakers participate through the Delegation Manager, they agree to share in the rewards generated by their selected operator, and they also accept the risk of slashing if that operator fails to perform.
For operators: It assigns stake and enforces slashing/reward conditions based on operator's performance.
For AVSs: It connects them to a shared security layer, enabling them to outsource security to existing operators without needing to build their own infrastructure from scratch. The Delegation Manager also handles dual-staking logic, slashing enforcement, and reward distribution according to each AVS’s defined rules.
The Liquid Stake Manager introduces liquidity to staked and locked assets.
Staked protocol tokens → Minted as ERC-20 tokens
Locked BTC → Minted as ERC-721 NFTs
These tokens are freely transferable and tradable, offering users a liquid representation of their positions. The Liquid Stake Manager also helps optimize delegation across operators based on yield and slashing risk—maximizing returns for users who prefer a hands-off experience.
Rewards from dual-staking are distributed to the holders of these ERC tokens and NFTs.
By offering both standard and liquid staking pathways, b14g strategically caters to a diverse range of user preferences. This dual approach allows for both direct participation in operator selection and automated, liquid exposure to the benefits of staking rewards and deep Bitcoin integration within the expanding BTCFi landscape.
