What does Babelfish Solve
Since the big bang of DeFi in the crypto galaxy, many stablecoin projects have been created to meet the demand for USD. Different stablecoin brands with unique selling points are competing to represent the same dollar, but they do not translate 1:1, and crypto dollar liquidity is fractured between issuers and protocols. As stablecoins bloom and DeFi markets grow beyond Ethereum to chains like Avalanche, Binance, Rootstock, Solana, etc. the liquidity is fractured further amongst the bridges used, which is sub-optimal for the industry. BabelFish abstracts away these differences to aggregate stablecoins from multiple isolated liquidity lakes and provide users access to the combined ocean of crypto-dollars available. Here's how it works in essence:
- 1.User deposits an accepted stablecoin on BabelFish protocol.
- 2.Protocol issues XUSD, its convertible stablecoin backed 1:1
- 3.User can use XUSD on accepted protocols, bridge between chains, and redeem back at any time
In the near future, the protocol will lend some of its collateral to offer yield products and allocate a percentage to build an rBTC insurance pool managed by FISH token holders.
Think of BabelFish as a stablecoin bank with branches across the DeFi multi-chain universe. If a user wants to use his crypto dollars on another chain, the user can stick it on BabelFish and seamlessly get a par-value equivalent on the other side, backed by a bitcoin insurance pool. It's a translator, or a convertor, between different USD-stablecoin brands leveraging the combined liquidity and utility of competing issuers to simplify the user experience.