Babylon Labs releases bitcoin collateral risk assessment framework SCRIPT

Techub News, Bitcoin staking protocol Babylon Labs has released the SCRIPT risk assessment framework to evaluate counterparty risk for Bitcoin collateral. The framework includes six major categories: sovereign preservation, clear rules, prohibition of rehypothecation, asset segregation, permissionlessness, and transparency. The team noted that while Bitcoin is a high-quality on-chain collateral asset, its limited on-chain programmability often leads to collateral solutions relying on off-chain systems or custodial operations, which may introduce additional risks. SCRIPT can be used to evaluate various solutions, including Babylon's own protocol.