Optimizing BabelFish: Adjustments to the Balancing Curves Parameters

At BabelFish, we continuously monitor our aggregator and the broader market to ensure our platform remains a responsive and trusted component of the Bitcoin DeFi ecosystem, built on the Rootstock blockchain. In response to the dynamic stablecoin market and in alignment with the strategies outlined in BIP-0011, we are once again refining our Balancing Curves1 parameters:

• DLLR: Decreased to 40% (-4%)
• USDTbs: Increased to 18% (+1%)
• USDCbs: Increased to 7.5% (+1%)1
• USDTes: Increased to 10% (+1%)
• USDCes: Increased to 7% (+1%)
• DAIbs: Remains at 6%
• DAIes: Remains at 6%
• rUSDT: Remains at 5%
• DOC: Remains at 0.5%

Additionally, we have increased the Factor ( C ) parameter from 2,000,000 to 2,500,000. This adjustment will steepen the Balancing Curves, influencing the rewards and penalties for users of our platform. This change refines our parameters to be more responsive and ensures greater rewards for users depositing funds into the BabelFish Aggregator.

We believe these changes not only enhance the stability of our platform but also promote optimal diversification of stablecoin allocations within our aggregator. As we observe positive shifts in stablecoin inflows and outflows at BabelFish, we are ready to make further adjustments. These will aim to increase inflows from centralized Ethereum and BNB Smart Chain stablecoins. Stay tuned for upcoming updates and please share your thoughts through our channels!