The Rise of Tower
…In the heart of ancient Babylon, merchants gathered beneath a towering structure, a hub of commerce and prosperity where the city’s wealth was exchanged and expanded. Trade flourished, setting the foundation for economic power….
Today, a new structure is rising — not built of stone but of liquidity, satoshis, and opportunity.
Introducing Tower
For the first time, we emerge from the shadows to unveil Tower — a cornerstone of BTCFi, the rapidly evolving frontier where Bitcoin liquidity can now meet DeFi. Just as ancient architects rose to craft a monument that touched the heavens, we heeded to construct a decentralized exchange to reshape the Bitcoin liquidity landscape.
Planned to be built on Babylon Genesis, the world’s first Bitcoin Secured Network, Tower intends to become the trading engine for this blockchain. Tower wants to empower Bitcoin LSTs and LRTs, created by issuers integrating and utilizing the Babylon Bitcoin staking software protocol, to flow seamlessly.
As BTC adoption accelerates, its liquidity must evolve, becoming more resilient, decentralized, and trustless than ever before. To be built on top of Babylon Genesis blockchain, Tower is where this transformation begins.
The Mythical Tower
The Tower of Babylon embodies the spirit of its ancient namesake — monolithic in strength, modular in design, and a hub for global trade. Just as Babylon’s ziggurats and markets were built to last and connect diverse cultures, Tower is designed as the foundational DEX for BTCFi: robust, secure, yet flexible for evolving markets. Like the bustling trade routes that once flowed through Babylon’s gates, Tower will become the modern crossroads for global traders, uniting liquidity and opportunity in one seamless ecosystem.
The Tower Blueprint
Tower BabyDEX
With the launch of the Babylon Genesis blockchain on the CosmWasm instance, it is clear that there is a market niche for a decentralised exchange. Tower wants to step in and build BabyDEX — a minimal yet efficient platform designed to provide an exchange solution. This is not Tower DEX in its final form but a preliminary product on a CosmWasm instance.
BabyDEX will provide access to both XYK (traditional AMM pools) and PCL (passive concentrated liquidity) pools, optimizing token efficiency by concentrating liquidity around key token swap ranges. It also supports multiple fee-tier pools for the same asset pair, allowing LPs to choose the most suitable fee structure for their strategy, as well as swap routing, to allow users to trade tokens across multiple pools.
There will be no DEX token at this stage.
The Tower
The stage is set for a new era of BTCFi as the Babylon ecosystem continues to evolve. As the transition unfolds, the TWR token, governance, and incentive mechanics will launch, and Tower will open its gates to major liquidity inflows. This shift paves the way for leading Bitcoin LSTs and LRTs to surge in, deepening liquidity and accelerating BTCFi’s rise. As tokens flow in, Tower and the broader BTCFi ecosystem will become even more integrated with Ethereum’s DeFi landscape, cementing Tower’s place at the center of the next wave of Bitcoin liquidity integration.
At its core, Tower aligns incentives across four key user groups — Liquidity Providers, Swappers, Governors, and Bribers — ensuring tokens flow where most needed. The DEX leverages concentrated liquidity, a vote-escrow model, and a market-driven incentive system where governance determines liquidity distribution. Functioning as a dynamic marketplace, Tower prices emissions based on swap fees, optimizing returns for all participants.
Key features include:
- Vote-Escrowed Tokenomics: TWR holders can stake tokens for veTWR, gaining voting power to direct emissions and earn swap fees from selected pools.
- Concentrated Liquidity Pools (CLPs): Liquidity Providers set price ranges, improving capital efficiency and maximizing earnings.
- Bribe Marketplace: Third parties can offer incentives (bribes) to increase votes and emissions for specific liquidity pools, directing rewards where demand is highest.
- NFT Liquidity Positions: Liquidity positions are represented as ERC-721 NFTs, making them tradable and usable as collateral.
- Protocol-Governed Fee Distribution: Governance can activate protocol fees and allocate a share of trading fees to the treasury for long-term sustainability.
This structure keeps Tower’s liquidity efficient, dynamic, and community-driven, with users shaping incentives and rewards through an evolving market-based governance model.
The Future of Trade Begins Here
Just as ancient Babylon stood as the center of commerce, Tower aims to be the financial hub of BTCFi. The foundations are laid, and the first stones are set. Now, we invite the community to build with us — to shape the markets, govern liquidity, and construct the future of Bitcoin trading.
Rise with the Tower. Build with the Tower. BTCFi trades at the Tower.
If you have questions or want to collaborate, please message us at vlad@tower.fi.
Note: The TWR token is not live yet. Please verify any information on our official social media accounts:
