I was thinking about TBV from a market structure angle recently — not the vault design itself, but what actually makes a lending market around it function. How does a trustless mechanism prove its value before enough liquidity arrives to test it?
What seems interesting is that TBV needs two cohorts moving simultaneously — BTC depositors locking collateral and stablecoin lenders willing to deploy. I'm not completely sure how those sides bootstrap at the same pace, but one waiting on the other tends to stall a market early.
The question that comes to mind is whether early capital pools on the supply side — BTC depositors — while genuine borrowing demand takes longer to develop. It makes me think liquidity depth and protocol utility are two separate milestones that rarely arrive together.
Looking from the outside, I sometimes wonder if a vault that sits mostly unused signals fragility more than it signals safety. Whether TBV reaches the critical mass needed for a genuine two-sided market — not just on paper but in active positions — may define its first real chapter — anyway, time will tell👍@BabylonLabs_io #baby $BABY $VIC $SKYAI
What seems interesting is that TBV needs two cohorts moving simultaneously — BTC depositors locking collateral and stablecoin lenders willing to deploy. I'm not completely sure how those sides bootstrap at the same pace, but one waiting on the other tends to stall a market early.
The question that comes to mind is whether early capital pools on the supply side — BTC depositors — while genuine borrowing demand takes longer to develop. It makes me think liquidity depth and protocol utility are two separate milestones that rarely arrive together.
Looking from the outside, I sometimes wonder if a vault that sits mostly unused signals fragility more than it signals safety. Whether TBV reaches the critical mass needed for a genuine two-sided market — not just on paper but in active positions — may define its first real chapter — anyway, time will tell👍@BabylonLabs_io #baby $BABY $VIC $SKYAI