DeFi Slate dHEDGE Pool Is Live: Participate in the crypto revolution with DeFi Slate by your side!
DeFi Slate Fam:
As DeFi Summer 2021 makes its way into the history books, it leaves with us the takeaways of another eventful crypto season.
Early on, this Summer was touted as Layer 2 season while the ecosystem thrived on expectations of low gas fees and quick Tx speeds. Polygon and BSC had their time in the spotlight but it was short-lived. Now, the emergence of a new season awaits us:
Alt Season is here, but it looks different this time. Rather than swooping low marketcap shitcoins with high growth potential, this season calls for the rise of Alternate Layer 1 chains aka ‘Ethereum killers’.
DYOR. Ape Responsibly.
Today, we have a written piece from one of the largest community projects pre-mainnet. Babylon is a decentralized investment club shipping robust tools for community asset management.
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Babylon AMA Qs
1. What makes Babylon a stand-out in the DeFi ecosystem?
Most DeFi protocols are focused on individual investors. Babylon turns investing into a multiplayer game by enabling communities to invest together. We believe that given the right incentives and coordination, investment communities can outperform individuals.
2. What is the decentralized vs centralized asset management debate? Is the decentralized/non-custodial route the better of the two?
There are pros and cons to each approach. A single asset manager can make faster decisions but there’s a limit to how much they can know as one person. A community of asset managers working together can access more information, but making decisions is slower and more complex. As a result, day trading is probably better suited to individual investors whereas analyzing a large number of farming opportunities may be better suited to a team.
3. When the bull market eventually picks up steam again, there will be a very high demand for Ethereum block space causing gas price spikes. How will you take care of managers/communities looking to trade and profit during these high volume trading sessions?
Managers of strategies have full control of their strategy. They can decide to exit a strategy at any time. We also plan to add gas limit parameters to each garden so each community can set a maximum gas price they are willing to pay when executing transactions.
4. How many developers are on the Babylon team? What are the plans for growth heading into 2022?
There are currently four developers on the team with experience at companies like Open Zeppelin, Google, and Y Combinator. We plan to keep the team lean for the near future so we can quickly respond to user needs and re-evaluate our hiring plans in a few months.
5. Do you plan to onboard institutional asset managers (family offices, hedge funds etc) onto non-custodial asset management solutions ie. Babylon?
Absolutely. Babylon is open to whoever wants to use it.
6. What will the liquidity mining look like for users, community pool managers, and community members alike? Where does the line need to be drawn in terms of over-inflationary measures vs. proper incentives?
We believe that Babylon should be controlled by its users. ~70% of $BABL, the protocol’s governance token, is reserved for the community. It’s possible that a large percentage of the tokens will be distributed via a participation rewards program, however that decision will be up to community vote. We plan to launch our governance module in the next month, after which it’ll be up to the community to make decisions moving forward.
7. As far as expectations go, after the launch, what is the goal for total TVL in Babylon?
$10MM by the end of October. $25-50MM by EOY
8. Do you plan to reward the best performing managers by offering a Babylon DAO grants program where you invest in each of the highest performing pools? Or perhaps to incentivize creation of new pools?
It’s likely that the participation rewards program will reward top-performing Babylon users with more $BABL. Each investment community (called a “Garden”) in Babylon can also assign a % of profits to be allocated to active participants who submit investment ideas and/or vote, rewarding them for helping the Garden returns.
9. In what way, if any, will Babylon incorporate NFTs into the mix?
We currently use NFTs to give users access to Beta. In addition, each Garden has a generative NFT that evolves as a Garden grows. In the future, we will explore letting Gardens invest in NFTs -- a product that we are likely to call “Babylon Museums”.
10. What is your favorite part about working in DeFi?
The composability and transparency of the ecosystem. Every line of code has a tremendous amount of leverage. A single line can potentially move billions of money around the world in minutes. Compared to traditional web applications, it is much easier to create and transfer value.
This composability creates a compounding effect where DeFi improves one primitive at a time. One day a developer publishes a new protocol and the next the whole ecosystem can build on top of it. The pace of innovation is accelerating.
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Babylon Finance is an ecosystem of community-built DeFi strategies. Non-custodial, completely trustless and transparent asset management with traceable performance history.
Hermez Network is an open-source ZK-Rollup optimised for secure, low-cost and usable token transfers on the wings of Ethereum. Check it out here!
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⚠️ DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. At certain points throughout this post, we might get commission for promoting certain projects, if this is the case we will always make sure it is clear. We are strictly an educational content platform, nothing we offer is financial advice. We are not professionals or licensed advisors.
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