BabelFish’s Voyage Through 2023 and Beyond

Babel Fish
5 min readDec 31, 2023


As we reflect on this passing year, it’s clear that BabelFish has navigated the vast and turbulent waters of decentralized finance with remarkable innovation and resilience. 2023 was a year of significant achievements, pioneering developments, and community-driven success. Our journey through the year was marked by strategic implementations, optimizations, and a steadfast commitment to enhancing the stablecoin ecosystem on Rootstock.

In 2023, BabelFish demonstrated its agility in responding to market dynamics while maintaining a strong focus on platform security and stability. The commitment to improving user experience resulted in ongoing platform enhancements, ensuring a seamless journey for our users. The year also witnessed the successful launch of the groundbreaking Balancing Curves, revolutionizing liquidity management and stablecoin allocation within our aggregator. Perhaps most notably, our community played a central role, actively engaging and providing unwavering support in every venture we undertook.

Here’s a look at the major highlights from each quarter, reflecting on our journey towards pioneering stability in decentralized finance.

Q1: Strategically Responding and Enhancing User Experience

  • ZUSD Deposits Paused: In response to the high proportion of ZUSD within the stablecoin aggregator, BabelFish governance proactively paused ZUSD deposits, ensuring the aggregator’s stability and integrity.
  • New BabelFish Web App Launched: The introduction of a new and improved web app early in the year marked a significant step towards enhancing user accessibility and engagement.
  • USDC and DAI Deposits Temporarily Paused and Promptly Restored: Addressing market volatility, BabelFish briefly paused and then efficiently resumed USDC and DAI deposits, demonstrating agile management and commitment to maintaining service continuity.

Q2: Fostering Robust Community Governance and Platform Optimization

  • Active Community Participation in Governance: The quarter was marked by active community engagement in governance decisions, solidifying the “bitocratic” and participatory nature of our protocol. An excellent example is the unanimous community support for the Staking Contract Update (BIP-0004), which reflected the strength and engagement of our governance, resulting in enhancing the platform’s security and efficiency.
  • Enhanced Emergency Deposit Pause Feature: The implementation of an automatic element in the Emergency Deposit Pause feature demonstrated our commitment to proactive, responsive risk management.
  • Continuous Web App Enhancements: We focused on refining the user experience and aligning our services with the BabelFish brand identity, ensuring our platform remains intuitive and user-friendly.

Q3: Advancing Liquidity Management and Pioneering Innovations

  • Emergency Staking Contract Paused: The emergency pause of the staking contract, in response to identified vulnerabilities, underscores our commitment to security and platform integrity. While it temporarily affected governance and slowed us down on our journey towards our greatest milestone — The Balancing Curves — we were able to swiftly address and resolve the issues.
  • Community Supported Balancing Curves: The unanimous approval of BIP-0007 and BIP-0008 showcased a strong community consensus and support for our innovative liquidity management strategies, which we internally referred to as ‘BabelFish SCALE’ — StableCoin Allocation & Liquidity Enhancement. The successful implementation and fine-tuning of Balancing Curves marked a pioneering development in managing and incentivizing proper stablecoin allocations.
  • Continued Innovations and Platform Refinemed: The quarter was characterized by ongoing enhancements, reflecting our commitment to continuous improvement and innovation.

Q4: Amplifying Growth and Establishing Future Readiness

  • Sovryn Community Proclamation SIP Passed: The Sovryn community’s call for support from Rootstock emphasized the collaborative spirit and recognized the vital role of BabelFish in enhancing the Rootstock ecosystem. This proclamation set the stage for further ecosystem growth and stability.
  • Ceased BUSD Aggregation: The proactive discontinuation of BUSD aggregation within our platform adapted our strategies to maintain a compliant and healthy stablecoin environment.
  • Launched Turbocharging Rootstock’s Stablecoin Liquidity Campaign: The Rootstock-sponsored campaign significantly enhanced stablecoin liquidity, demonstrating the effectiveness of our Balancing Curves and community collaboration.
  • Reached Stablecoin Target Weights: By the end of the year, most stablecoins aggregated by BabelFish achieved or approached their target weights, evidencing the success of our Balancing Curves.1

As we look forward to 2024, BabelFish is gearing up for an exciting year ahead. In response to the interests and requests we’ve received from our community, we are exploring new horizons and considering the possibility of extending our innovative solutions to other EVM-compatible chains. From the very beginning, BabelFish has held ambitions that extend far beyond the boundaries of Rootstock. Our vision is rooted in the aspiration to unite fragmented stablecoin liquidity across various chains. This endeavor could open doors to broader opportunities and have a more significant impact within the dynamic DeFi landscape, while also contributing to deeper stablecoin liquidity on our home chain — Rootstock. We remain committed to relentless optimization, ensuring that our platforms and mechanisms continue to set the benchmark for innovation and efficiency within the decentralized finance arena. Moreover, recognizing the invaluable role played by our dedicated FISH stakers and community members, we are determined to find meaningful ways to reward their unwavering support and active participation in governance. In the spirit of collaboration, we are eager to embark on joint ventures and community initiatives that align with our collective vision of a more accessible and robust DeFi ecosystem. With these aspirations, we are ready to dive headfirst into 2024, confident that the coming year holds even greater promise and potential for BabelFish and its community.

With the solid foundation laid in 2023 and earlier, and the continuous support of our community, we can expect 2024 to be a year of growth and exciting developments. Join us as we continue to navigate the ever-evolving tides of decentralized finance, always striving for greater stability, efficiency, and community empowerment. Together, let’s build a future where BabelFish is synonymous with reliability, innovation, and collective success in DeFi.

As we merrily hurtle through the cosmos on this pale blue dot, let’s not forget to celebrate another splendid revolution ‘round that fiery ball we call the Sun. It’s that time again when Earth insists on completing yet another lap — a quirky cosmic tradition we’ve grown quite fond of. So grab your towels, hoist your cups of tea, and remember, in the grand tapestry of the universe, we’re still mostly harmless. Happy Earth Orbit Completion Day!

Here’s to a promising year ahead with BabelFish!


Let us use this opportunity to share the Aftermath Report of Turbocharging Rootstock’s Stablecoin Liquidity Pilot Campaign. We hope that you will find it as interesting as we did. Here’s the link:



Babel Fish - stablecoin aggregator and liquidity provider. Issuer of XUSD - meta-stablecoin on RSK chain.