Deluthium Partners With Babylon Labs To Bring Trustless Native Bitcoin Liquidity To DeFi

In Brief

Deluthium and Babylon Labs have partnered to enable trustless, real-time, and AI-driven on-chain Bitcoin liquidity in decentralized finance.

On-chain liquidity platform Deluthium has announced a partnership with the trustless Bitcoin-focused project Babylon Labs to address a longstanding gap in decentralized finance (DeFi): native Bitcoin liquidity through trustless Bitcoin vaults

The collaboration aims to combine Babylon’s cryptographic vault technology with Deluthium’s reinforcement learning–driven infrastructure to enable efficient on-chain Bitcoin trading while reducing counterparty and bridge risks. Settlements are secured through BitVM3-style fraud proofs, ensuring trust-minimized execution.

While wrapped Bitcoin has historically dominated decentralized markets, it depends on centralized custodians and does not fully preserve Bitcoin’s trustless principles. Native Bitcoin usage in DeFi has remained limited due to settlement delays and risks associated with free-option mechanics in atomic swaps, resulting in large-scale BTC trading being largely disconnected from the broader on-chain ecosystem.

Babylon’s Trustless Bitcoin Vault provides a mechanism for BTC holders to lock native Bitcoin in vaults secured by pre-signed transactions and BitVM3 proofs, enabling verifiable collateralization directly on Bitcoin Layer 1 without relying on bridges or custodians. Deluthium plans to build on this foundation, using reinforcement learning–based execution models to manage BTC liquidity dynamically, allowing real-time, trustless, and capital-efficient participation in decentralized finance protocols.

This collaboration represents more than a technical integration; it embodies a shared vision for a new type of execution infrastructure where real assets like BTC can move with precision and efficiency while maintaining decentralization. By combining native Bitcoin, AI-driven execution, and intelligent liquidity coordination, the initiative aims to advance the next generation of on-chain trading infrastructure.

Deluthium: Pioneering AI-Native Liquidity Infrastructure For Scalable And Intelligent DeFi Trading

Deluthium positions itself as the first AI-native liquidity platform powered by reinforcement learning, converting user trading requests into model-driven execution. The infrastructure enables decentralized participants to act as active market-makers within dark pool environments, emphasizing precision, privacy, and programmability. The platform is designed to serve both institutional and retail on-chain traders, providing a scalable and intelligent framework for modern DeFi markets.

Deluthium continues to expand its presence in the DeFi ecosystem, as evidenced by its recent collaboration with FLock.io, announced last week. This partnership seeks to shape the future of autonomous finance by leveraging Deluthium’s reinforcement learning-based execution models to coordinate liquidity dynamically within decentralized markets.