🫀The Heart Of Babylon — DeFi 3.0

Ramon Recuero
Published in
4 min readJan 26, 2022


Babylon is a community-led asset management protocol that enables users to create investment clubs (we 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. BABL is the governance token behind it.

UPDATE: The Heart was updated on June 7th. Read all the changes https://medium.com/babylon-finance/the-heart-of-babylon-defi-3-0-6d16e35817f2

Babylon Finance is introducing a 💪 staking mechanic for BABL holders.

First of all, we are using our own Garden technology to 🐶 dogfood and create this mechanic. As you may know, Babylon Finance lets people create and invest together through investment DAOs that we call 🌴 Gardens. Garden members create DeFi strategies and invest in DeFi together, sharing the gas costs and the returns.

🫀The Heart of Babylon is a garden that will receive BABL as deposits and will give depositors hBABL. The heart will receive 100% of the protocol fees and BABL from stakers and infuse them both with renewed energy.

💪 🌴 hBABL is a super garden token that includes 10 + 1 different mechanics inspired by the very best of DeFi and synthesized together to provide value to BABL holders and Babylon users alike.

You can see the TLDR of the Mechanics here and a full explanation of each of these mechanics will follow in separate posts👇

⏰ TLDR: “Show me the money”

Initial Capacity: 20k BABL 🏛 / Launch Date: February 3rd 📆

First of all, BABL already has in place a powerful mining program (1). Our mining program lasts for 10 years and distributes 50% of all the tokens to the Babylon users that are providing the most value, i.e generating wealth together.

  • 🔐 Holders lock BABL for a minimum of 2 months. hBABL is a voted escrow token (2) similar to veCRV tokens from Curve.
  • 🎟 BABL holders can lock BABL along with a reserve pair (ETH, DAI…)to get a discount on BABL (3) similar to Ohm bonding program.
  • 💸 Management and performance fees (4) will accrue to hBABL holders. Similar to xSushi.

These fees will be used to increase the value of BABL and hBABL in the following way:

  • 📈 25% of the fees (5) will be used to increase trading liquidity for BABL .
  • 🫀 30% of the fees will be used to buyback BABL (6) and gift 50% of these back to the Heart Garden. The other 50% will be locked in the treasury. This will automatically increase hBABL share price.
  • 🌱 15% of the fees will be used to invest in different gardens (7) to generate yield . Similar to Tokemak Reactors, hBABL holders can collectively decide to provision capital and decide where to allocate it. BABL rewards will be claimed and reinvested every 4 weeks.
  • ⚙️ 20% of the fees will be lent via our Fuse pool (8). When available, the heart will also borrow to generate additional yields that will also be put to use. Here is our Fuse Pool on Rari.
  • 🏛 10% of the fees will be sent back to the treasury to increase Protocol Controlled value.

The BABL deposited in the heart will also be working:

  • 75% of the staked BABL will initially be lent on our Fuse pool. through a garden strategy inside the heart. This will generate lending fees. When available, the heart will also borrow stables and farm additional yield through “safe” strategies like stETH. hBABL holders will vote on the strategies similar to how strategies are voted in other gardens (9).

Finally, hBABL holders will be able to vote for free via signatures (10) 🗳 and the heart will vote on-chain on our governor with the aggregate decision of all holders. All the other gardens will also delegate unclaimed BABL power to the heart.

All the weights and percentages above can be changed by hBABL holders.

🌟 One more thing…

Other DeFi protocols can also use our gardens to create a super-charged token mechanic for their governance tokens and/or organize their community to manage the treasury through a garden. For example, let’s imagine our friends at Pickle want to use this mechanic.

  • Pickle could create an official garden for their community where users deposit PICKLE (or ETH) and receive hPickle in return.
  • PICKLE is added to our Fuse Pool to be used as collateral and borrowings are used to invest in different Pickle Jars.
  • Strategies will be generating returns and purchasing more PICKLE with the proceeds.
  • The garden then becomes a de-facto index of the best pickle strategies and hPickle holders would be earning BABL on top.

If you want to use Babylon please ping us directly at founders@babylon.finance 📪

💰 How to acquire BABL

BABL is currently trading on Uniswap 🦄. You can purchase BABL here.

Alternatively, you can join our beta program and start investing in gardens. BABL mining rewards are accrued based on the capital invested, the duration of the investment, and the performance.

You can visit Babylon here.

If you haven’t had a chance to use Babylon yet, please join the waitlist to request access to our private Beta and help us build a better way for communities to invest in DeFi together.️

Join our Discord to find out more.

㊙️ If you need a beta invite, you may be able to snatch one by asking other members in Discord.



Ramon Recuero

Cofounder at Kinto. Previously at Babylon Finance, Y Combinator, Zynga, Google and OpenZeppelin.