Last Sunday afternoon, Nam and I tried locking 0.05 BTC on the testnet of @BabylonLabs_io , then borrowed mock USDC. What made me stop wasn’t the Health Factor on Aave, but the question: when a position gets liquidated, what exactly is the system selling? $BABY . BTC can’t immediately leave the Bitcoin chain, so the debt is settled first using DeFi liquidity, while the Vault and the right to redeem the underlying BTC are transferred to the buyer. Looking more closely, this isn’t just buying BTC at a discount; the buyer is giving up today’s liquidity in exchange for the right to redeem BTC later. The spread doesn’t only cover price risk—it’s also the price of waiting. The money leaves the buyer’s hands while the Bitcoin still can’t be received. TBV doesn’t eliminate Bitcoin’s latency; it turns that latency into a risk that can be priced and transferred to someone else to bear. This structure runs quite smoothly when liquidity is abundant, but in a domino crash—when many Vaults fall below Health Factor 1 and everyone wants to hold cash—the safety parameters can only limit losses; they can’t magically create buyers. That’s the harshest stress test of $BABY : when many Vaults need to be liquidated at the same time and the market only wants cash, is anyone still willing to trade immediate liquidity for a delayed right to receive Bitcoin? #baby
June ends also marks the time my journey with Binance Alpha comes to a close. Thank you, Alpha, for creating many opportunities for me to earn money over the past year $BLESS $BEAT
The attack on Bitcoin cold wallets continues to spread. According to CoinDesk, the number of affected addresses has risen to about 4,500 wallets, with total estimated losses of nearly $89 million. The incident is raising concerns about security procedures and private key management, even though the Bitcoin network itself was not attacked.
Every day before the BSC race, after I finished the alpha break I completely forgot about it. Today I saw it rising again and remembered back when I raced BSC with Hemi -PRAI -PTB- TRADOOR. I set alpha again just to give me such a memorable keepsake 🤣🤣 $PTB $KOMA