Blockchain is powering the next internet revolution. In fact, this new-age technology is considered to be a significant milestone in the evolution of the internet. After all, peer-to-peer blockchain network has the potential to influence every single virtual platform that we have today, including the way we look at finance.
Thanks to DeFi apps, we are already seeing a plethora of peer-to-peer financial services based on public blockchains like Ethereum. While crypto has opened up an enormous opportunity, the number of options in the market often creates confusion and indecision among new investors. And given how the industry is rapidly evolving, no single user can keep up with the advancements in NFTs, Yield Farming, and liquidity pools.
Another concept gaining popularity in recent years is social investing. We have seen how investment communities like Wall Street Bets, Seeking Alpha, and Real Vision have influenced real-world financial instruments, showcasing the power of a group driven by a common goal. And it looks like crypto needs a similar platform that will democratize investment opportunities for individuals who don’t have the capital, the know-how, or the time to do it alone.
This is exactly what Babylon Finance envisions from its platform. The Babylon protocol was developed to enable investment as a community, wherein members can crowdsource information, split investment costs and build wealth together.
The protocol introduces the concept of investment communities called Gardens. There can be hundreds of gardens within the platform, giving investors the opportunity to find communities that match their time, risk, and liquidity preferences. Moreover, the platform is built on the Ethereum Blockchain and is non-custodial, transparent, permissionless, and governed by the community.
Babylon Finance was conceptualized by visionaries Ramón Recuero, Tyler Murray, and their team. The team brings years of experience in the field of cryptocurrency and security. For example, Ramón was the head of Product at OpenZeppelin, the creator of the ERC-20 token. Even before his entry into the crypto space, he led teams for giants like Google and Zynga in Silicon Valley. On the other hand, Tyler Murray was previously leading the product engineering team at the Allen Institute for AI (AI2).
Babylon Finance is backed by the world’s leading investors like Semantic Ventures, Joseph Young, Defi Alliance, Harvest Finance, Meltem Demirors, Fomosaurus, Dialectic Capital, Nick Chong, and Tom Shaughnessy.
The concept of Gardens can be a bit confusing for new investors. To put it simply, it’s an investment community in Babylon Finance that allows members to pool their resources and invest as a group. To join a garden, the member has to deposit the reserve asset like ETH or DAI of the garden. Members can also propose new investment strategies, upvote or downvote on proposed strategies by other members, and even participate in the governance to earn rewards. While anyone can create a Garden, parameters like the name, reserve asset, profit allocation, and deposit minimums and maximums can only be altered via voting by the members.
One of the biggest highlights of Babylon Finance is its fee structure. The platform significantly reduces the overall fees, with a basic 0.5% management fee on deposited capital and a 5% fee on profits. Notably, these fees are distributed among BABL token holders as rewards.
Some of the Key Features of Babylon Finance:
- Transaction Fee Sharing – Babylon allows splitting the investment fees across all of its members, facilitating a higher profit margin, especially when compared to other traditional models.
- Trustless & Non-custodial – Members have the ability to deposit or withdraw from any Garden at any time*. Gardens are also non-custodial, with no single point of control or authority. They are based on trustless smart contracts, giving complete control to the member.
- Autocompounded Profits – Each garden is powered by cutting-edge technology that auto-compounds investment profits across new and existing strategies to maintain maximum capital efficiency and trust. So members don’t have to manually claim and rebalance their profits.
- DeFi Village – One of the biggest highlights of social investing is information sharing. In this regard, Babylon has a DeFi village that acts as a support system for community members allowing them to share knowledge, updates, and other happenings from the market.
As of today, Babylon Finance has managed to generate a total value locked (TVL) of $21.86 million. Two of its most successful gardens are “The Fountain of ETH” and “The Stable Garden,” which boast TVL of over $9.8 million and $4.9 million, respectively.