i want to talk about something nobody mentions when they explain Babylon. what happens when things go wrong before your vault even activates. đ€
say you submit a peg-in. your BTC is sitting in the Pre-PegIn output on Bitcoin. then the off-chain setup fails. or you change your mind. or the Vault Provider goes quiet. your BTC is technically locked in a script. so now what?
Babylon built a refund path into the Pre-PegIn output from the start.
its a Taproot leaf locked behind a Bitcoin timelock. on the current testnet that timelock is 3 days. once it elapses, you sign with your own Bitcoin key and broadcast a refund transaction that sends the BTC straight back to your wallet. đ
no cooperation required. not from the Vault Provider. not from Babylon. not from anyone.
Trustless Bitcoin Vaults (TBV) has two distinct failure modes that both lead here. if the setup doesnt complete within 24 hours â vault expires, peg-in fee refunded automatically, BTC recoverable via refund path. if you never activated a verified vault within 48 hours â peg-in fee is gone, but the BTC is still fully recoverable.
the $BABY ecosystem is being built so that even in failure, the depositor stays in control. Babylon didnt just design the happy path. they designed every unhappy one too.
does building unilateral recovery into every failure mode make TBV genuinely safe to use, or does a 3 day timelock create just enough friction that most people wont know what to do when they actually need it??
@BabylonLabs_io $BABY #baby
say you submit a peg-in. your BTC is sitting in the Pre-PegIn output on Bitcoin. then the off-chain setup fails. or you change your mind. or the Vault Provider goes quiet. your BTC is technically locked in a script. so now what?
Babylon built a refund path into the Pre-PegIn output from the start.
its a Taproot leaf locked behind a Bitcoin timelock. on the current testnet that timelock is 3 days. once it elapses, you sign with your own Bitcoin key and broadcast a refund transaction that sends the BTC straight back to your wallet. đ
no cooperation required. not from the Vault Provider. not from Babylon. not from anyone.
Trustless Bitcoin Vaults (TBV) has two distinct failure modes that both lead here. if the setup doesnt complete within 24 hours â vault expires, peg-in fee refunded automatically, BTC recoverable via refund path. if you never activated a verified vault within 48 hours â peg-in fee is gone, but the BTC is still fully recoverable.
the $BABY ecosystem is being built so that even in failure, the depositor stays in control. Babylon didnt just design the happy path. they designed every unhappy one too.
does building unilateral recovery into every failure mode make TBV genuinely safe to use, or does a 3 day timelock create just enough friction that most people wont know what to do when they actually need it??
@BabylonLabs_io $BABY #baby