#baby $BABY Something I kept coming back to while reading Babylon's Trustless Bitcoin Vaults docs: creating a vault and having usable collateral aren't the same milestone. The system deliberately keeps them apart.
Here's how it plays out — $BTC gets locked first, governed entirely by the vault's own rules. Only once verification is complete does that locked BTC transition into active collateral. Two separate states, two separate moments, not one combined action.
I find that reassuring in a way, since it means the protocol never assumes collateral is ready to use before it's actually been verified. But it does add a layer users have to get comfortable with before reaching the borrowing stage.
It's a clear tradeoff — less simplicity, more explicit assumptions baked into the protocol.
Question is whether that extra boundary between vault creation and collateral activation is unnecessary overhead, or whether it's precisely what makes the model hold up better under stress.
#baby @BabylonLabs_io $BABY
Here's how it plays out — $BTC gets locked first, governed entirely by the vault's own rules. Only once verification is complete does that locked BTC transition into active collateral. Two separate states, two separate moments, not one combined action.
I find that reassuring in a way, since it means the protocol never assumes collateral is ready to use before it's actually been verified. But it does add a layer users have to get comfortable with before reaching the borrowing stage.
It's a clear tradeoff — less simplicity, more explicit assumptions baked into the protocol.
Question is whether that extra boundary between vault creation and collateral activation is unnecessary overhead, or whether it's precisely what makes the model hold up better under stress.
#baby @BabylonLabs_io $BABY