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Introduction

What is BabylonDAO?

BabylonDAO is a decentralised autonomous organisation that aims to build the reserve currency on the Solana network. All $BBY is backed by a basket of assets (e.g. USDC) that produces an intrinsic value that it cannot fall below.
The treasury contains assets used to maintain the intrinsic value of $BBY. The assets in the treasury that aren't used to mint new $BBY are used not just only to farm the market, but to perform arbitrage on the trading pairs that will be on BabylonSwap.

How does Babylon Work?

There are essentially three actions that can be performed on the protocol: Staking, Bonding and Selling.
Staking is the passive means of accruing value in Babylon. This is done simply by buying the token from the DAO or a DEX (boo!) and then tapping stake on the dApp.
Bonding is the active means of accruing value in Babylon. This is done simply by giving up your LP share (for instance in a BBY-SOL/BBY-USDC) pool or USDC to receive $BBY at a discounted price over a given period of time.
Selling is the surest path for those that are ngmi!

Why is there a need for Babylon?

First, the original crypto-asset, Bitcoin, was intended to be used for digital payments. That's not possible from the path it has taken simply due to its volatility (even at a 1.2T MC). For this reason people have fallen to dollar-pegged stable-coins as a means of payment believing they possess the same purchasing power today as they did yesterday. This is false because new dollar notes are constantly being minted at freewill by the Federal Reserve changing the purchasing power (A fifth of all US dollars in circulation was minted in 2021!). $BBY plans to solve this by establishing a currency with an initial intrinsic value that has a free float value dependent on the market. Thus creating a currency that has the same purchasing power today, a month from now and in 2050.
Second, BabylonSwap is built to solve the problem of typical AMM decentralised exchanges. The model of liquidity mining used by virtually all AMMs has a loophole. That's in the fact that the liquidity providers rent their liquidity and at any point in time they pull out, the other users of the protocol can't use the protocol (be it for swaps, lending or borrowing or any other action in DeFi 1.0). We plan to solve this by introducing POL and using this to form an efficient decentralised exchange with POL. Therefore Babylonians reaping rewards from the exchange will do so knowing that their pleasurable experience will never be interrupted.

Why backed, not pegged?

Each token is backed by $1 equivalent of USDC, not pegged to it. Because the treasury backs each BBY with at least a dollar in USDC, the protocol would buy back and burn BBY when it trades below $1. This has the effect of pushing the price back up to $1. On a brighter note, BBY could always trade above a dollar in stable-coins since there is no upper limit imposed by the protocol.

Who are the founders of BabylonDAO?

Babylon DAO was inspired by Olympus DAO. It was conceptualised and built by a distributed pseudo-anonymous team.

Who runs BabylonDAO?

The goal of BabylonDAO is to be fully governed by the community and we've taken steps to achieve this. We believe the introduction of Assyrians and Uruks would help make this transition faster.

For true Babylonians:

Last modified 8mo ago