🐡 Don’t panic! Here is the BabelFish FAQ V 1.0🐡
What is BabelFish?
BabelFish is a decentralised aggregator and distributor of stablecoins across chains. It earns yield on the deposits' respective chains, and re-invests it weekly in a community-owned pool of Bitcoin (rBTC) - the ultimate insurance. Users vote in the direction of the protocol using $FISH tokens. Think of it as a decentralized bank for stablecoins accepting deposits and withdrawals across chains, with a growing pool of rBTC insurance against idiosyncratic risks in the ecosystem. The insurance is earned by lending the collateral on DeFi lending markets and then investing the yield in rBTC, which is managed by $FISH holders.
Where does the name “BabelFish” come from?
BabelFish is inspired by Douglas Adam's The Hitchhiker's Guide to the Galaxy, a wholly remarkable best-selling book. We recommend you read it during this tumultuous time to learn more about BabelFish, a translation device which enables any species across the galaxies to understand each other.
How did BabelFish’s project come to be?
The project’s seed was planted with CementDAO, a decentralised stablecoin clearinghouse some of us helped research and develop in 2018 to create concrete solutions to the inevitable risks and inefficiencies we see today on the maturing stablecoin ecosystem. About 28 USD- stablecoin issuers existed back then with a combined market cap shy of $3bn. It was clear then that a shared standard between stablecoin issuers would significantly optimize our shared goal: enabling mass adoption. To that end, we organised the first stablecoin ecosystem event, bringing together stakeholders across the world to meet at the iconic Reform Club in London to present the first stablecoin ecosystem survey results and open discussions around shared goals. All stakeholders at the event validated the need for a translation device that could enable stablecoin holders from any (accepted) issuer to trade with each other at 1:1 value, reducing risk and increasing utility. Our timing was a bit early and, unlike Phileas Fogg, we did not succeed -yet.
Why BabelFish?
The need for a "trustless stablecoin translation device" is stronger than ever. Today there are five stablecoins with at least $1bn in crypto-USD float, there are many more with less than that...they are different brands with different unique selling points and so do not translate 1:1. As stablecoins bloom and DeFi markets grow beyond Ethereum to chains like Avalanche, Binance, Rootstock, Solana, etc. the combined USD liquidity gets fractured further which is suboptimal for the industry. 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. We propose a simple solution: a decentralized aggregator and distributor of stablecoins that earns yield on the deposits's respective chains, and re-invests it weekly in a community-owned pool of Bitcoin - the ultimate insurance. Users vote in the direction of the protocol using FISH tokens, including a potential reward for FISH stakers. BabelFish is a stablecoin dBank with branches across the DeFi multi-chain universe, turning stablecoin liquidity swamps into a liquidity lake. DeFi degenerates may use niche- solutions, but these are cumbersome and provide no insurance. If a user wants to use her TUSD on another chain, she can stick it on BabelFish and seamlessly get a convertible stablecoin on the other side, backed by a bitcoin insurance pool in which she has a vote to govern.
What is BabelFish’s goal?
BabelFish's mind-boggling objective is to enhance USD-stablecoin flow and accelerate hyperBitcoinization in a product that is simple to use and understand.
How does BabelFish work?
BabelFish strives to provide a simple solution to an important problem, and it is probably the simplest thing in the DeFi Universe. It works as such: 1. User sends stablecoins to protocol 2. Protocol mints convertible stablecoin to user, plus FISH tokens to participate in governance 3. Protocol invests collateral in DeFi to earn revenue and create a Bitcoin layer 2 insurance pool for users 4. User can redeem stablecoins at any time 1:1
Will BabelFish be governed by a DAO?
Yes. Building the foundations of a decentralized autonomous organization is a priority for BabelFish. This is a collective experiment to remake and decentralize money and cannot be managed by a central authority, but by an active community of participants akin to the example being set by Sovryn. We believe in the benefits of decentralized organizations, from a legal and technological perspective. Futarchy governance is the objective to build an interest-driven decentralised protocol.
Which chains will be supported by BabelFish Money?
The first chains that will be supported by BabelFish will be ETH (Ethereum), RSK (Rootstock) and BSC (Binance Smart Chain). More protocols will be supported in the future; the community can decide and vote on the direction of BabelFish.
Where will the collateral be invested, and how is BTC insurance acquired?
BabelFish seeks to lend its stablecoin collateral in AAVE, Compound, Venus and other battle-tested lending protocols. The stablecoin yield earned would periodically be bridged to Rootstock (Bitcoin Layer 2 protocol) to acquire rBTC for the protocol’s insurance. Users will earn FISH tokens to govern the protocol’s accepted stablecoins, allocations and use of funds.
What is the total supply of $FISH tokens?
“The Answer to the Great Question... Of Life, the Universe and Everything... Is... Forty-two,' said Deep Thought, with infinite majesty and calm.” ― Douglas Adams, The Hitchhiker's Guide to the Galaxy Since the name BabelFish is inspired from Douglas Adam's The Hitchhiker's Guide to the Galaxy, and since the total number of tokens issued by a protocol is arbitrary, we have settled on a total token supply of 420,000,000 FISH. And we just like the fact that 21 x 2 = 42
When is BabelFish launching?
The alpha version of BabelFish is expected to launch early June. Date is TBD.
At this stage, are there ways of earning the $FISH token other than buying it during the token sale?
Yes, it is possible to get involved with the community, add value, and get rewarded with $FISH tokens. Check our Loot Drop details in the Discord/ #bounties channel for more information. For details on the limited token sale, please read BabelFish’s draft SIP: https://docs.google.com/document/d/10b0T6JOuUejBBBYI9ct-wp5B3yumWl0fZexHToCX2Rs/edit?usp=sharing
How do I become involved with BabelFish?
If you are creative, curious or really want to help build BabelFish at this early stage, fill in the quick form below and we will reach out to you! $FISH rewards are to be earned by those who add value! All hands on deck! https://docs.google.com/forms/d/e/1FAIpQLScM3a6YXOKVqtZkf1Q8xyYHDpA2cNlABXcwOzEYPgbHcck_2Q/viewform?usp=sf_link
“So long, and thanks for all the fish.” ― Douglas Adams, The Hitchhiker's Guide to the Galaxy
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