Here you find more details about all the chains BabelFish is using at the moment.
BabelFish aggregates liquidity from various issuers and chains, and has quickly become the largest stablecoin on Rootstock (RSK), where it initially had launched. The meta-stablecoin XUSD reached $10.000.000 in deposits within two months of being live on mainnet.
The amount of solutions and integrations in the RSK defi ecosystem is experiencing significant growth and BabelFish intends to play a leading role in facilitating this as a stablecoin gateway. The fast growth and acceptance of XUSD is a sign of a strong appetite among users to port their stablecoins to RSK and experiment in the growing space of DeFi on Bitcoin.
The current DeFi markets remain fragmented, where two players dominate >85% of the total USD-stablecoin float, and systemic risks abound. In the decentralized economy we ought not to rely on one or two issuers of USD-stablecoins but rather enable a thousand stablecoins to bloom and communicate with each other to bring mass adoption. Therefore it is BabelFish’s DAO objective to facilitate stablecoin flow across chains and reduce idiosyncratic risks; and it aims to reward stablecoin research, development and competition with this end. The protocol currently accepts major stablecoins from the chains of Ethereum, Binance, and RSK.
The invention of Bitcoin by the mysterious Satoshi Nakamoto has created a decentralized, censorship-resistant, and secure monetary system for all to use and fully permissionless. Bitcoin has performed amazingly on the disciplines of security and decentralization. Its reputation as a treasured store of value and hedge against the inflatable fiat world is unparalleled. However, while Bitcoin is sound money, it cannot scale independently as a platform for decentralized financial applications.
The construction of layer 2 solves the challenges of layer 1 (Bitcoin), being transaction speed, fees, and scaling to the masses. Layer 2 protocols that are in the emergent phase include Taproot, Lightning Network, and Rootstock (RSK), which is a foundational element of Babelfish. The solution creates an open source operating system for building financial products connected to Bitcoin’s Proof of Work verification system. Scaling of transactions is possible through sidechain technology without foregoing the financial sovereignty and security afforded by Bitcoin.
RSK is a Bitcoin layer 2 sidechain that provides for smart contract functionality using Bitcoin as it’s native asset. RSK is the most permissionless and censorship-resistant Bitcoin sidechain because it is permissionless and its consensus mechanism is merge-mined PoW with about 40% of Bitcoin’s hashpower mining RSK. This means that RSK is mined by more hashpower than any other chain, except Bitcoin itself.
Babelfish chose to be on RSK because it has decisive advantages:
- RSK is Bitcoin native. All fees are paid in Bitcoin and all transactions are merged with Bitcoin PoW so that DeFi can be both scalable and secure.
- RSK is non-custodial.
- Self-Custody. Don’t risk giving up your keys to centralized services that can be compromised or censored.
- Privacy is protected. As a decentralized service, Babelfish does not require user accounts, KYC or user tracking.
- RSK is secured by Bitcoin PoW.
Ethereum is created in 2013 and is often considered to be the mother of all DeFI, as it is a decentralized, open-source blockchain that allows users to create smart contracts. The platform's native cryptocurrency is Ether. Ethereum is based on Bitcoin's innovation, but with a few key differences. Both allow you to utilize digital money without the need for a payment provider or a bank. However, because Ethereum is programmable, you may use it to create a variety of digital assets and smart contracts. It's the first programmable blockchain in the world. This means Ethereum can be used for more than just payments, such as more complicated financial services, gaming, NFT's, software that won't steal your data or censor you and much more. Due to flexible approach of Ethereum, a lot of sophisticated programs can be launched on Ethereum and utilize the distributed network. As DeFi is born and raised on Ethereum, it was a logical expansion for BabelFish as it creates a massively deep reach into the crypto space.
BSC is better and smarter version of the Binance Chain, which launched in April 2019 with the main focus of high speed and decentralized trading. BSC is a self-contained chain that could continue to function even if the Binance Chain went down. The main improvement of BSC is that it is focused on smart contract functionality and is compatible with the Ethereum Virtual Machine (EVM), which provides intelligent contract functionality and compatibility with the rich ecosystem. BSC debuted with support for Ethereum's vast ecosystem of tools and DApps. To get started with BSC, all you have to do is change a few parameters. That is also why Babelfish choose to expand to BSC, as it was very easy for the developers to facilitate and great for users as applications such as MetaMask are compatible and easily configured for the BSC. Furthermore, the security, governance and speed make it a very reliable chain.