Babylon Finance: Gardener’s Digest #21

June 17th, 2022

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Published in

Babylon.finance

5 min readJun 17, 2022

📖 Overview

Gardener’s Digest is a weekly newsletter highlighting updates and news in the Babylon Finance ecosystem.

📢 News

Rari Fuse Exploit Reimbursement Vote

Fei/Tribe DAO has decided not to go forward with reimbursement in its current form for funds lost during the Rari Fuse exploit 2 months ago. After signaling with over 90% approval during the snapshot vote, the team has decided now is not the best time to reimburse the funds because it would weaken FEI’s collateralization ratio, and the PCV Fei controls.

Recognizing this reality, (the markets collapsed since the time of the hack and the time of repayment) Babylon, OlympusDAO, Frax, Vesper, Balancer, Terra, & Swivel are all working together to get a new proposal up for a vote which would allow for repayment to retail users, with pending repayment to affected DAO’s. This would allow Babylon’s users to be made whole, as the Babylon DAO didn’t use Rari Fuse itself, only strategies in other gardens were affected.

This tweet thread explains the situation well: https://twitter.com/cobie/status/1537220039522545664?s=20&t=pE_vcnn8jtiXpZrEuDt8yg

And this tweet from Tetranode/0xMaki outlining steps to make retail investors whole: https://twitter.com/Tetranode/status/1537653706656608256

You can read our initial medium article about the events here.

Custom Integration Bounties🔌

Now you can connect Babylon to any DeFi protocol and/or custom logic. Babylon released their SDK, allowing anyone to develop an adapter, test it on a private garden and then submit it to be verified and audited by Babylon governance.

Babylon has created a wishlist of integrations with a $5k bounty awarded to whoever successfully integrates these protocols. Here is a link to the regularly updated integration wishlist. The first person that successfully completes each of these integrations will receive up to $5k in developer bounties paid in BABL.

Read more from the official announcement here.

📜 Governance

BIP-22 Heart Reloaded 🫀

This proposal attempts to restructure how the Heart of Babylon functions. Please read the write up above, as well as the official announcement here. A summary of changes are below.

Global Parameters:

15k BABL will be allocated from the treasury to satisfy discounts and bonds. Any amount not used will be returned to the treasury on July 15th.
APR: Baseline Target APR of 30%. Use safer strategies. Mining Reward program will give twice the rewards to Heart strategies.
Capacity: 150k. Increase to 150k.
Lock Period: 6 months — 4 years. Up to 10% reward and 8x voting boost.
Bond Program: Add DAI bond with 10% Discount.

As for the fee split:

BABL Buybacks: Decrease to 10%
BABL-ETH Liquidity: Decrease to 10%
Garden Investments: Increase to 20%
Fuse Pool: Decrease to 10%
Treasury: Increase to 45%
Shield: Increase to 5%

This proposal has executed on-chain.

BIP-23 Rari Fire

After recognizing that Fei will likely not make our users whole in a timely manner, Babylonians must step up to do what is right and help in any way that we can. Discussions are in progress in discord around BIP-23, a proposal to update the NAV of the affected gardens and resume deposits/withdrawals.

The process to complete looks like the following:

Recoup as much collateral as possible from the fuse pool (400k)
Finalize the affected strategies.
Distribute the collateral between all the affected gardens proportionally.
Adjust the shares of people that deposited after the hack to have them recover at least 90% of their principal.
Adjust the NAV
Identify the best way to compensate users from there.

The team is working around the clock to get these updates out by Monday, June 20th so our users can properly position themselves and their portfolios. Babylon is fully committed to seeing this through, and is currently in discussions with FEI and other affected DAO’s/individuals around partial reimbursement without hurting FEI’s collateralization ratio or PCV.

Members in the Heart of Babylon can vote gas-free here: https://www.babylon.finance/heart

📈 Stats

TVL & Users 🌱

Babylon Finance currently has $10.7M in TVL within 98 different Gardens for their 1,605 users.

Babylon’s Treasury is currently holding $898K in assets.

🌴 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

Babylon Finance hosts Q&A sessions on Discord and Twitter spaces to talk about all things Babylon. Follow us on Twitter and join our Discord to stay up to date on the next community call.

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