@BabylonLabs_io There's a thing that happens with insurance sometimes someone pledges the same collateral to two different lenders, and each lender assumes they're the only one with a claim on it. Works fine until both come calling on the same day.
That's what kept nagging at me while reading Babylon's multi-staking design. The pitch is elegant one BTC position, multiple PoS networks secured at once, more yield, no extra capital. But the more I looked into it, that BTC now backs several independent slashing conditions simultaneously. Diversification and correlated exposure look identical on a dashboard.
I kept comparing it to Ledger's new vault-signing setup Babylon making custody feel institutional-grade while the underlying obligation quietly multiplies underneath. Add a16z's $15M going straight into BTCVault infrastructure, and you get serious capital pouring into a structure nobody's really stress-tested for a scenario where two networks slash the same BTC in the same window.
Meanwhile people keep panicking over the monthly unlock (next one's Aug 10) like it's news it's scheduled, it's known, it's not the risk.
The actual open question what happens the first time multi-staking commitments collide? Anyone modeled that yet?
#baby $BABY
That's what kept nagging at me while reading Babylon's multi-staking design. The pitch is elegant one BTC position, multiple PoS networks secured at once, more yield, no extra capital. But the more I looked into it, that BTC now backs several independent slashing conditions simultaneously. Diversification and correlated exposure look identical on a dashboard.
I kept comparing it to Ledger's new vault-signing setup Babylon making custody feel institutional-grade while the underlying obligation quietly multiplies underneath. Add a16z's $15M going straight into BTCVault infrastructure, and you get serious capital pouring into a structure nobody's really stress-tested for a scenario where two networks slash the same BTC in the same window.
Meanwhile people keep panicking over the monthly unlock (next one's Aug 10) like it's news it's scheduled, it's known, it's not the risk.
The actual open question what happens the first time multi-staking commitments collide? Anyone modeled that yet?
#baby $BABY