BabelFish Insights: Reflecting on Recent Growth (Mid-February — Mid-March)
BabelFish is excited to share some fascinating performance metrics. By comparing the 30-day periods from mid-January to mid-February and from mid-February to mid-March, we’re provided with an interesting snapshot of our trajectory. Let’s dive into these numbers and explore the story they tell about growth and progress within our ecosystem.
Below is a concise table that summarizes the performance of BabelFish over the analyzed period:
A standout feature from our latest metrics is the notable surge in the volume of stablecoins imported from Ethereum and BSC blockchains. This increase has led not only to improved stablecoin allocations within the BabelFish Aggregator, but resulted also in a rise in both Balancing Curves incentives distributed and penalties collected. The total volume of stablecoins interacting with the BabelFish Aggregator grew from $4,297,225 to $7,901,393, marking an impressive 83.87% growth.
Since the last adjustment of the Balancing Curves Parameters, it’s been observed that the penalties collected for the Reward Manager have surpassed the incentives acquired by users. A total of 1,171.96 XUSD in penalties was collected, indicating that the penalties exceeded the funds allocated for incentivizing the balancing of stablecoin pools by nearly 6%. Furthermore, the total rewards distributed experienced a significant increase, soaring from 8,543.74 XUSD in the period from mid-January to mid-February, to 19,663.73 XUSD by mid-March, reflecting a growth of 130.15%. Intriguingly, the amount of collected imbalance penalties rose even more sharply, by 145.85%, from 8,474.82 XUSD to 20,835.69 XUSD, making it over 15% higher than the rewards distributed.
In addition to the above metrics, we have prepared charts that highlight the amounts of aggregated imported stablecoins from BSC and Ethereum for every 30-day period starting from mid-September 2023 until mid-March 2024.
At first glance, it appears there was a significant decrease in BSC stablecoins from mid-January to mid-February. However, examining the charts that show percentage values relative to all aggregated stablecoins indicates that the fluctuations in BSC stablecoin amounts were not as significant.
A longer perspective is necessary for accurate evaluation, yet the indicators suggest we are moving towards establishing an efficient and sustainable system. The implementation of Balancing Curves with current setup of parameters, not only incentivizes users to maintain the desired stablecoin allocations within the BabelFish Aggregator but also generates revenue. This revenue can be strategically utilized to ‘water the planted seed,’ thereby further increasing volumes and amplifying the ecosystem’s growth and stability. While it may represent just a small drop in the vast ocean of the DeFi space, it’s essential to remember — every great forest starts with a single sprout. And indeed, ours is growing.
We should not forget that BabelFish approach to stablecoins contributes to fostering a more diversified, secure, and dependable DeFi ecosystem. It mitigates the risk associated with the potential failure of any single stablecoin issuer by ensuring users are not constrained to depending solely on a single stablecoin issuer. This strategy enhances the resilience and safety of the financial environment for all participants. BabelFish is far from overcomplicating things — with the ‘KISS’ (an acronym for “Keep It Simple, Stupid”) principle applied, we focus on keeping operations not only safe, but also simple, and easy to understand. These insights bolster our confidence that we are navigating in the right direction. Let’s look forward to discovering where this journey will lead us!
