#baby $BABY
Well yesterday a colleague of mine saw my previous publication yesterday and he said you spoke about trade-offs yesterday what are these trade-offs, honestly I didn't know at the time, but from a general perspective based on the issues raised by other publicists here's what I can define to be the key markers associated with the $BABY protocol Initiative; with respect to the fact that no mechanism is perfect, The innovation proffered by Babylon to retain $BTC in it's native form while tapping into its huge liquidity ostensibly poses some prominent challenges for instance, Technical complexities such as Verifying Bitcoin from another blockchain is much more technical than simply accepting an ERC-20 token, The TBV initiative, The Trustless Bitcoin Vaults and it's supporting contracts which is a really massive idea by the way do however, need time to prove it's viability under manifest conditions in real time, Smart contract risk, in as much as the proposal suggests a reduction in custodial risks users still depend on correctly functioning smart contracts and protocol logic, and most importantly the risk of asset liquidation, The Bitcoin backed borrowing system in as much as the ideology proves to be sustainable, is still subject to concurrent market and economic conditions such as volatility and price fluctuation hence typically as a lending protocol, incorrect pricing or sharp BTC price drops can affect the staked assets used as collateral leading to liquidation.
Notwithstanding all these issues I still believe much is yet to be achieved with the Babylon Genesis protocol, and fingers crossed we anticipate a massive success in the innovation.
Well yesterday a colleague of mine saw my previous publication yesterday and he said you spoke about trade-offs yesterday what are these trade-offs, honestly I didn't know at the time, but from a general perspective based on the issues raised by other publicists here's what I can define to be the key markers associated with the $BABY protocol Initiative; with respect to the fact that no mechanism is perfect, The innovation proffered by Babylon to retain $BTC in it's native form while tapping into its huge liquidity ostensibly poses some prominent challenges for instance, Technical complexities such as Verifying Bitcoin from another blockchain is much more technical than simply accepting an ERC-20 token, The TBV initiative, The Trustless Bitcoin Vaults and it's supporting contracts which is a really massive idea by the way do however, need time to prove it's viability under manifest conditions in real time, Smart contract risk, in as much as the proposal suggests a reduction in custodial risks users still depend on correctly functioning smart contracts and protocol logic, and most importantly the risk of asset liquidation, The Bitcoin backed borrowing system in as much as the ideology proves to be sustainable, is still subject to concurrent market and economic conditions such as volatility and price fluctuation hence typically as a lending protocol, incorrect pricing or sharp BTC price drops can affect the staked assets used as collateral leading to liquidation.
Notwithstanding all these issues I still believe much is yet to be achieved with the Babylon Genesis protocol, and fingers crossed we anticipate a massive success in the innovation.