I almost added more to my $BABY position yesterday, but I stopped myself and reread the TBV documentation instead of relying on the marketing summary. That ended up changing what I was paying attention to.
I always assumed the main trust assumption was simply Bitcoin. The docs paint a more nuanced picture. Depositors also rely on the protocol’s cryptography, both the Bitcoin and Ethereum networks, and the DeFi application using the collateral. On top of that, governance and emergency-response multisig keys still exist today as a temporary safeguard.
That doesn’t make the design weak. Every system has trade-offs during its early stages. What I find more interesting is when those multisig controls eventually disappear. If they’re meant to be temporary, the timing says a lot about how confident the protocol is in its own architecture.
For me, that’s become a bigger signal than watching TVL alone. I’m keeping my position small until I see how that transition evolves.
@BabylonLabs_io $BABY #BABY #baby
I always assumed the main trust assumption was simply Bitcoin. The docs paint a more nuanced picture. Depositors also rely on the protocol’s cryptography, both the Bitcoin and Ethereum networks, and the DeFi application using the collateral. On top of that, governance and emergency-response multisig keys still exist today as a temporary safeguard.
That doesn’t make the design weak. Every system has trade-offs during its early stages. What I find more interesting is when those multisig controls eventually disappear. If they’re meant to be temporary, the timing says a lot about how confident the protocol is in its own architecture.
For me, that’s become a bigger signal than watching TVL alone. I’m keeping my position small until I see how that transition evolves.
@BabylonLabs_io $BABY #BABY #baby