Babylon Finance: Gardener’s Digest #18
May 27th, 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.
Babylon Announces Hack Money Winners
This week Babylon has announced the winners for the Hack Money event by EthGlobal. The winners and prizes are listed below. 👇
- Best #DeFi product built on top of Babylon Gardens (Tie) — Babylon Finance + Badger Dao — $4,500 https://showcase.ethglobal.com/hackmoney2022/babylon-finance-badger-dao-44yib
- Best #DeFi product built on top of Babylon Gardens (Tie) — UMA integration for Babylon Finance — $4,500 https://showcase.ethglobal.com/hackmoney2022/uma-integration-for-babylon-finance-xvzpb
- Best #DeFi product built on top of Babylon Gardens (3rd Place) — Inveth — $1,000
UMA, Badger DAO, Balancer v2 Integrations Pending 🦡
As part of the Hack Money event, developers building on top of Babylon have managed to integrate UMA, Badger DAO, and Balancer v2.
Badger DAO has been integrated and Babylon gardens used to enter their vaults on Badger DAO. This is particularly useful for gardens that wish to utilized WBTC strategies with higher average yield than what you can find on Aave.
Balancer v2 has been integrated and used within Babylon’s gardens to enter single sided liquidity pools. Balancer allows users to deposit assets into liquidity pools that are rebalanced automatically, allowing for impermanent loss protection and exposure to only one asset.
Support for Custom Integrations 🔌
Now you can connect Babylon to any DeFi protocol and/or custom logic. This means you can allocate pooled capital from your garden into it. After releasing the Babylon SDK two weeks ago, it is now possible to dynamically create gardens and strategies directly.
Until today, the design space in Babylon has been limited to the integrations that were developed by the core team. Now, anyone can develop an adapter, test it on a private garden and then submit it to be verified and audited by Babylon governance.
Read more from the official announcement here: https://medium.com/babylon-finance/custom-integrations-a-way-to-pool-capital-into-custom-strategies-f825db9bb32e
BIP-19 Babylon Shield 🛡️
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. Babylon is now covered for up to 1,000 ETH from smart contract hacks through Nexus Mutual for 1 year.
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.
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 and paused 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 it has passed 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
Currently we are waiting for the RARI/FEI team to purchase the assets required to make the proper refunding transactions.
TVL & Users 🌱
Babylon Finance currently has $17.05M in TVL and has created over $780K within 96 different Gardens for their 1,585 users
Babylon’s Treasury is currently holding $3.1M in assets.
Heart of Babylon Tracker 🫀
The Heart has performed its weekly buyback and reallocation on 05/26/2022:
- 115 BABL were purchased as buybacks (30%)
- Sent .62 ETH back to the treasury (10%)
- Added $2.6k in Liquidity to BABL-ETH (25%)
- Invested $1.7k into gardens (15%)
- Added $2.2k in liquidity to the Fuse pool (20%)
🌴 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