Couldn’t sleep last night, so I went through Babylon’s materials. I originally just wanted to see what the market has been talking about recently. But when I came across TBV-related content, I ended up stopping to study it for a long time. Because it touched on a contradiction I’ve always felt: should Bitcoin actually generate yield? Some people believe BTC is digital gold, and that simply holding it long term is enough.
But from another angle—how much potential has not been fully unleashed? We’re talking about a global asset at massive scale. If it’s only ever used to store value, its potential isn’t fully realized. The question is: how do you unlock it? Many past proposals answered by moving BTC onto other chains.
That’s how you get all sorts of wrapped BTC, cross-chain BTC, and custodial BTC.
These solutions do increase liquidity. But at the same time, they introduce new risks. What is BTC’s most core advantage? It’s not speed, and it’s not functionality. It’s the security consensus formed over decades. If you trade away that advantage for yield, then honestly it’s kind of putting the cart before the horse. This is also what I find special about Babylon. It doesn’t simply tell users: give me your BTC and I’ll help you earn yield.” Instead, it tries to explore another way—keeping BTC on its native network, and letting other ecosystems verify its status through cryptographic proof. $BTC
Logically, this aligns more with Bitcoin’s spirit: reduce trust, increase verification. Of course, this path isn’t easy. The closer you get to native BTC, the higher the system design difficulty.
You have to deal with Bitcoin network limitations, handle user experience, and solve settlement and liquidity issues. Many projects fail not because the direction was wrong, but because execution is too difficult. So when I look at BABY now, I won’t only focus on short-term prices. I care more about whether it can build a long-lasting BTC financial infrastructure. If in the future more and more BTC holders want to unlock the value of their assets, while also not being willing to sacrifice control, then this kind of demand will definitely exist. The market will ultimately filter out the projects that truly solve the problem. Whether Babylon is the answer remains uncertain—but the questions it raises, in my view, are worth observing for the long term. @BabylonLabs_io #baby $BABY
But from another angle—how much potential has not been fully unleashed? We’re talking about a global asset at massive scale. If it’s only ever used to store value, its potential isn’t fully realized. The question is: how do you unlock it? Many past proposals answered by moving BTC onto other chains.
That’s how you get all sorts of wrapped BTC, cross-chain BTC, and custodial BTC.
These solutions do increase liquidity. But at the same time, they introduce new risks. What is BTC’s most core advantage? It’s not speed, and it’s not functionality. It’s the security consensus formed over decades. If you trade away that advantage for yield, then honestly it’s kind of putting the cart before the horse. This is also what I find special about Babylon. It doesn’t simply tell users: give me your BTC and I’ll help you earn yield.” Instead, it tries to explore another way—keeping BTC on its native network, and letting other ecosystems verify its status through cryptographic proof. $BTC
Logically, this aligns more with Bitcoin’s spirit: reduce trust, increase verification. Of course, this path isn’t easy. The closer you get to native BTC, the higher the system design difficulty.
You have to deal with Bitcoin network limitations, handle user experience, and solve settlement and liquidity issues. Many projects fail not because the direction was wrong, but because execution is too difficult. So when I look at BABY now, I won’t only focus on short-term prices. I care more about whether it can build a long-lasting BTC financial infrastructure. If in the future more and more BTC holders want to unlock the value of their assets, while also not being willing to sacrifice control, then this kind of demand will definitely exist. The market will ultimately filter out the projects that truly solve the problem. Whether Babylon is the answer remains uncertain—but the questions it raises, in my view, are worth observing for the long term. @BabylonLabs_io #baby $BABY