What Is Babylon.finance?
Babylon.finance Coin is a community-led asset management protocol that enables users to create investment clubs (they call them gardens) and invest in DeFi together. It’s built on the Ethereum network and it’s non-custodial, transparent, permission-less, and governed by the community.
Babylon is an Ethereum-based protocol that offers community-led asset management.There are a lot of investment opportunities in DeFi but very few people that know how to take advantage of them. They believe this ever-expanding universe of opportunity is best served by a community-first approach.
Babylon enables users to create investment communities (called “Gardens”) and invite members to deposit capital, suggest investment strategies, vote, and earn rewards. Users can join Gardens with an investment thesis that matches their risk, time, and liquidity preferences. Babylon integrates with a number of different DeFi protocols to empower members with the tools they need to grow their assets under management.
Babylon.finance Coin Storage Key Points
|Coin Name||Babylon.finance Coin|
|Circulating Supply||40,515.00 BABL|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
How it works?
DeFi together. Deposit capital, vote on investments, and earn rewards.
Babylon.finance Settlers will be able to create the first Gardens in Babylon and invite up to 100 people to join, enabling them to deposit capital, vote on investments, and earn rewards.
- Share DeFi with your community
- Opportunity to earn rewards
- Join the community and establish a reputation before launch
- Help refine and battle-test the protocol
- Claim prime Garden real estate
- Earn a Settler role in Babylon’s Discord
Differentiation with other asset management protocols
Babylon.finance Coin Currently, there are two different kinds of asset management protocols. On one side, you have the ones that are passive like Yearn, DPI, Indexed.finance or Inverse. finance. They are trust-minimized and the strategies are coded in the smart contracts, therefore passive. On the other side, there are protocols like Enzyme, Set or dHedge that offer actively managed funds where a manager controls the investment decisions.
You can read more about the principles behind Babylon in our Medium post. TLDR below.
- In a world starved for yield, DeFi can help investors capture the convexity of the returns of the crypto asset class for the next decade. They want to give investors a way to find attractive risk-adjusted returns in a world where returns are pushed farther and farther in the risk curve. (e.g zero interest rates, bond yields inching negative, equity valuations at an all-time high).
- Non-custodial. Users retain ownership over their capital. The protocol, founding team, and other users cannot withdraw their capital.
- Decentralized asset management. Everyone can create their own Gardens. Users can become members of a Garden by depositing capital.
- The protocol is designed to encourage long-term holdings over short-term holdings. It incentivizes long-term holdings with more rewards in the governance token ($BABL).
- DeFi Together. Members of a Garden form around an investment thesis and cooperatively decide where to allocate the group’s capital for the common good.
Investors will be able to find the best Strategies in the space by participating in Gardens that focus on different aspects of the crypto market. Over the years, crypto insiders are always receiving questions from friends and family about how to get started and invest in the space. It is not scalable to educate every single person one on one. Babylon is designed to create a multi-sided marketplace where many different members can benefit from the knowledge of DeFi experts or Strategists.
- When a member of the Garden wants to withdraw his principal, there are different scenarios:
- If there is enough liquidity in the Garden, the user can withdraw immediately without penalty.
- There is not enough liquidity in the Garden, (i.e. all the capital is allocated to active strategies), the user can choose to:
- Wait until Strategies finalize and withdraw the proportional pro-rata amount of the capital allocated to the Strategy at no penalty.
- Withdraw immediately and pay a 2.5% penalty. The penalty is paid to the other members of the Garden to compensate for the partial liquidation of Strategies. Withdrawing before the Strategy completes also requires giving up any potential profits and $BABL rewards that the strategy may return upon finalization.
Profit & Reward Split
Babylon.finance Coin reinvents the traditional fund model. In traditional funds, there is a 2% management fee and a 20% performance fee. In Babylon, the protocol charges a 0.5% fee on total assets and a 5% fee on profits. These fees flow into the protocol treasury, which is governed by holders of $BABL, the protocol’s governance token.
They are witnessing the end of a 30-year secular downtrend in interest rates. As a consequence, bonds are no longer a viable hedge for portfolios. At the same time, equities are at an all-time high in terms of P/E ratios. Central banks are increasing the money supply faster than ever. Inflation looms on the horizon.