Babylon Finance: Gardener’s Digest #17
May 20th, 2022
Gardener’s Digest is a weekly newsletter highlighting updates and news in the Babylon Finance ecosystem.
BABL Token Referral Program 🤝
The referral program that is allocating 10k BABL tokens to the three verified gardens is still ongoing. Users can share in the success of the protocol by helping to onboard new users & build wealth together. For every $5k referred, you will both share 1 BABL token.
As part of BIP-16, deposits into these gardens when gas is under 125 gwei is 100% free to the user, and subsidized at 50% above 125 gwei.
Read more and follow the user guide to get your referral link in the official announcement here.
UI Update, New Strategy Modal
Last week Babylon created a new strategy UI that allows any user to easily see all the details about any given strategy. This applies to current, and past strategies. Users can clearly see the performance over time of any given strategy as well as the benchmark performance target set by the strategists.
Additionally, users will be able to see the net profits/losses created as well as in % terms, total and annualized, including any BABL rewards. Users can see how many users voted on the strategy, how much capital was allocated relative to the cap and % allocation set by the strategists.
Perhaps most importantly, users will be able to see the exact steps taken by the strategy smart contract in order to generate returns for the garden members. For example, here is the first half of the step by step process The Fountain of ETH used to generate 3x leveraged stETH returns on Aave. 👇
Finally, here is the step-by-step process in The Stable Garden showing the garden using FEI as collateral in the Fuse Pool on Rari to borrow FRAX and deposit it into the FRAX factory metapool (FRAX3CRV-f) on Curve before depositing LP onto Convex. 👇
BIP-18 Verify Partner Gardens
BIP-18 has passed governance and has been executed on-chain. As per this proposal, The Aave Oasis from Paladin.vote and The Pickle Field from Pickle.finance gardens are now verified partner gardens on Babylon. This will make it easier for newcomers to the platform to discover and invest in high-quality funds, with high-quality strategists.
BIP-19 Babylon Shield 🛡️
Exploits and hacks are weekly events in crypto. If we are to onboard the next wave of people we need to offer similar protections to what they experience in TradFi. This is why Babylon is putting forward the initiative to fund an ongoing insurance pool which will be used to cover exploits and loss of funds within our gardens, for our members.
This proposal comes after the UST collapse, and the stETH discount within the Fountain of ETH garden. Luckily, no gardens on Babylon were exposed to UST during the collapse, but the Fountain of ETH suffered slightly from stETH beginning to lose it’s peg. The strategists in this garden acted quickly to eliminate liquidation risk on Aave by finalizing the position, but not before booking some losses.
The proposal includes sending 25 ETH to the Fountain of ETH garden to make its members whole. Next, 25 ETH will be used to purchase cover on Nexus Mutual to protect Babylon on the protocol level. Finally, 5% of the Heart of Babylon’s weekly fees will be used to create the Babylon Shield. The Shield will be a pool of incidentals used to top up coverage, as well as be used for various risk mitigation initiatives.
A link to the full proposal can be found here. This proposal has passed governance and will be executed on chain in the coming week(s).
RARI/FEI Fuse Exploit Proposal 💥
Two weeks ago Rari fuse pools with FEI enabled as collateral were exploited for $80M. The RARI/FEI team identified the problem andpaused all lending in the affected pools. The hack includes approximately $30M of Tribe PCV deployments, leaving $50M of user & DAO funds affected to be reimbursed.
The RARI/FEI team has authored a proposal that would make Babylon and other communities whole. The vote on snapshot has passed, and now moves to Tally for on-chain voting, where we expect it will pass again.
To be clear, Babylon was not hacked and no user funds will be affected regardless of the outcome of the RARI/FEI vote. Babylon Finance has its own write up about the event here: https://medium.com/babylon-finance/babylon-lending-markets-fuse-fei-exploit-d8daa02c40b9
If you are a member of the RARI/FEI community, be sure to get involved and vote here.
TVL & Users 🌱
Babylon Finance currently has $17.96M in TVL and has created over $780K within 96 different Gardens for their 1,573 users
Babylon’s Treasury is currently holding $3.6M in assets.
Heart of Babylon Tracker 🫀
The Heart has performed its weekly buyback and reallocation on 05/12/2022:
- 82 BABL were purchased as buybacks (30%)
- Sent .45 ETH back to the treasury (10%)
- Added ~$2k in Liquidity to BABL-ETH (25%)
- Invested ~$1.4k into gardens (15%)
- Added ~$2k in liquidity to the Fuse pool (20%)
🧑🌾 Garden of The Week
The Stable Garden offers high sustainable income for their members at a low cost, it is also one of the three verified referral gardens. This garden attempts to earn low risk yield on stablecoins without speculating on market directions or asset prices.
The Stable Garden has set up strategies with staggered end times to allow for predictable claim periods with no down time on yield. In addition, it has one of the lowest fees possible on Babylon with 5% going to the protocol, 4% going to the Strategist, 1% to Voters and 90% of the profit split going to LPs.
The Stable Garden currently has 4 active strategies, with 147k DAI idle. It has a 90 day vAPR of 20.41% with BABL rewards. Strategies are set to end in 87, 61, and 18 days, with one strategy paused due to the Rari pool. New strategies will likely be proposed when the Rari vote ends and the garden has more available capital to re-deploy.
There are 284 members in this garden, so when a strategy is executed you are only paying 1/284th your share in gas. This is significantly less than $5 per member regardless of the strategy chosen, or how complex it is to execute. This cost will only go down as more members join the garden, and TVL continues to rise.
The Stable Garden was fortunate enough (high quality risk management) to not be exposed to UST or any Curve/Convex/LP pools associated with UST during the collapse. It was, however, affected by the Rari Fuse pool exploit mentioned earlier in this newsletter. As mentioned, the funds will be reimbursed by the RARI/FEI team, or backstopped by the Babylon Treasury. Voting in the first round signals the former.
You can deposit and join the Stable Garden here: https://babylon.finance/garden/0x1D50c4F18D7af4fCe2Ea93c7942aae6260788596?ref=0x10ccd4136471c7c266a9fc4569622989fb4cab99
🌴 Participate in the Babylon Ecosystem
Learn more about Babylon Finance and join your first garden here: https://www.babylon.finance/
If you want to join us on our mission to help people create wealth through DeFi, please visit our Discord.️ If you own DAI, USDC, ETH, BTC, BABL or AAVE there already exists a garden on Babylon where you can deposit your passive holdings and start earning the BABL token. BABL mining rewards are accrued based on the capital invested, the duration of the investment, and the performance of the strategies once finalized.
🌱 Partner with Babylon
Babylon allows any user to create their own investment club on chain using the reserve currencies we’ve made available, WETH, WBTC, DAI & USDC. However; through a partnership with Babylon, we can create a custom garden for your treasury using your DAO’s native token. Join us today and start building revenue for your treasury with transparent, audited DeFi strategies.
More information about partner gardens can be found here.
🧠 Become a Manager/Strategist on Babylon
As a strategist, you can receive up to 10% of the profits (varies per garden) + 10% extra BABL rewards. Learn more about BABL rewards here.
More information about strategists can be found here.
📞 Community Calls & Twitter Spaces
Questions? Read the FAQ: https://docs.babylon.finance/getting-started/faq
Need help? Follow our User Guides: https://docs.babylon.finance/getting-started/user-guides