Babylon has partnered with the lending platform Aave, launching on the testnet. Do ordinary users like us have a chance to “farm some free money” (yield)? Is now a good time to buy the dip at $BABY ?
1. First, for the users who have BTC: you can farm a bit of “pig’s foot meal.” If you don’t have BTC, it’s no big deal. Babylon is an intermediary platform. On the left, it collects users’ BTC deposits; on the right, it lends to blockchain projects that need assets with TVL. It earns a commission from that. So if you have BTC, you can choose to stake it with them and earn staking yield as your “pig’s foot meal,” as shown in Figure 1.
2. But as everyone can see, relying on innovations like TBV, time locks, and slashing/penalty mechanisms can only address security and trust issues. It can’t solve the problem that the staking yield is only a pitiful 0.57%. Who would participate? So recently, when they launched on the testnet, they can only partner with lending platforms like Aave. When users deposit money, they can earn staking yield, as well as the lending platform’s yield—and they can even use it to borrow other assets like BNB and more. That makes it much more attractive, #baby .
3. So will Babylon take off? Is now a good time to buy the dip at $BABY ? To be honest, no. Because the project team @BabylonLabs_io has only solved the “left side” problem, not the “right side” customer problem. In a bear market, there aren’t customers. A lot of projects have already shut down. Can Babylon possibly make money out of thin air? The project teams are still only surviving by burning through their funding for now.
4. Of course, there is another possibility: since this is an important milestone for the testnet launch, the project team might pull up the price and do some market-cap management to coordinate with promotional efforts, to attract follow-on funds.
But honestly, I think the probability is low. After all, BABY has been live for more than a year, and they never did any market-cap management while it kept falling. There’s no reason to do it suddenly now. Judge for yourselves.
1. First, for the users who have BTC: you can farm a bit of “pig’s foot meal.” If you don’t have BTC, it’s no big deal. Babylon is an intermediary platform. On the left, it collects users’ BTC deposits; on the right, it lends to blockchain projects that need assets with TVL. It earns a commission from that. So if you have BTC, you can choose to stake it with them and earn staking yield as your “pig’s foot meal,” as shown in Figure 1.
2. But as everyone can see, relying on innovations like TBV, time locks, and slashing/penalty mechanisms can only address security and trust issues. It can’t solve the problem that the staking yield is only a pitiful 0.57%. Who would participate? So recently, when they launched on the testnet, they can only partner with lending platforms like Aave. When users deposit money, they can earn staking yield, as well as the lending platform’s yield—and they can even use it to borrow other assets like BNB and more. That makes it much more attractive, #baby .
3. So will Babylon take off? Is now a good time to buy the dip at $BABY ? To be honest, no. Because the project team @BabylonLabs_io has only solved the “left side” problem, not the “right side” customer problem. In a bear market, there aren’t customers. A lot of projects have already shut down. Can Babylon possibly make money out of thin air? The project teams are still only surviving by burning through their funding for now.
4. Of course, there is another possibility: since this is an important milestone for the testnet launch, the project team might pull up the price and do some market-cap management to coordinate with promotional efforts, to attract follow-on funds.
But honestly, I think the probability is low. After all, BABY has been live for more than a year, and they never did any market-cap management while it kept falling. There’s no reason to do it suddenly now. Judge for yourselves.