PANews reported on October 13th that Deluthium, the AI-native liquidity infrastructure project, has officially announced a strategic partnership with Babylon Labs, a Bitcoin productivity project. The two parties will jointly unlock a long-missing core component of the DeFi ecosystem: trustless native Bitcoin liquidity. By combining Babylon's encrypted vault mechanism with Deluthium's reinforcement learning (RL) execution system, this collaboration aims to enable efficient and secure on-chain execution and settlement of native Bitcoin transactions, reducing reliance on centralized custodians and cross-chain bridges.
Babylon Labs' Trustless Bitcoin Vault, based on pre-signed transactions and the BitVM3 fraud proof mechanism, enables BTC holders to verifiably stake and lock their Bitcoin on the Bitcoin mainchain, without the need for bridging or third-party custody. Deluthium will build on this foundation by introducing an RL model-driven liquidity execution infrastructure, enabling native BTC to move beyond staking and locking to participate in on-chain intelligent liquidity routing, trade coordination, and policy scheduling, truly integrating it into the execution layer of modular DeFi.