A few things have happened since our last community call on the heels of the Miami Bitcoin Conference, where BabelFish was represented by team members from across the RSK ecosystem. Not least of all, the biggest implosion of a stablecoin project that was being promoted by influencers who ignored the elephant in the room. Fortunately, BabelFish’s collateral had no exposure to this stablecoin, but its collapse has negatively impacted the narrative of crypto and the stablecoin ecosystem in particular.
BabelFish’s pitch on Sovryn’s forum little over a year ago was to hedge stablecoin risk and get bitcoin insurance. Perhaps we have not been vocal enough in this view, but we’ve always believed in the power of stablecoins as a tool to onboard billions to the new economy, and the responsibility that carries vis-a-vis stablecoin stakeholders. This is why, as we said in the previous community call, slow and steady wins the race. We keep our heads down and eyes on the prize: enhancing stablecoin flow and accelerating hyper-bitcoinization.
Many of our community members have been here long enough to spot too-good-to-be-true rube goldberg machines, and we hope that those that did not see it that way are OK and learned from this, and that they will keep contributing to the decentralised economy. We can’t simply hope that people will identify idiosyncratic stablecoin risks, we have to build solutions to that problem for them. BabelFish’s collateral had no exposure to UST even though it was being requested almost from genesis. But our collateral still needs to be expanded and balanced across a more diversified set of issuers soon.
The logic for the distribution of rewards will be deployed soon after the upgraded UI, which we are happy to share screenshots with you. Very soon after another upgrade will be made to claim FISH and XUSD rewards and even more aesthetically pleasing UX. This upcoming UI will see the addition of BDUS and rDOC and withdrawals to RSK enabled.
As discussed in our last meeting, given the bottleneck with BIPs, it makes sense to proceed with a simple vote in the meantime, such as that proposed by Hyde to have a foundational bitcoin insurance multisig created. Given that Bitcoin should be accrued from yield earned by lending XUSD’s collateral, and not simply allocated from one multisig to another, it should be a symbolic amount of no more than 1BTC. In addition, all of it should be lent out on RSK to begin accruing interest. If OK with everyone in the discussion, then the post can be officially submitted as BIP-003 for a vote no more than 10 days after.
BabelFish Quarterly Reports
Given the current market conditions, a protocol treasury and runway report is being prepared by team members to share with the community before the next community call. The protocol should survive the winter for the next 18–24 months and keep building towards its objective. It is important that we
If BIP-0003 is voted on as the foundational bitcoin insurance proposal, the next thing up for BIP-004 should be what we have been making progress on: Balancing Curves. This could be one of the most important votes on BabelFish’s protocol. Something pending on the current draft discussion on the forum is the initial allocations we want to reset the collateral with, and how to do so accordingly.
After the collateral is reset to the initial desired parameters, a risk board will assemble periodically to vote on updating the respective stablecoin allocation parameters. We invite you to share your views on the forum now, and eventually join the risk board calls.
Until the next community call: so long and thanks for all the fish!