Changing the Dynamics of Investing by Enabling Community-Led Asset Management  

The world is experiencing a rising wave of rapid digital transformation. Amidst this change, DeFi and cryptocurrency have emerged more popular than ever. But there is still a large population of active as well as potential investors who haven’t yet joined the bandwagon. Among multiple reasons, the two major reasons for this are the complexity and knowledge gap that prevails in this domain. However, experts believe that this is the best time to enter the world of DeFi and make the most out of the vast opportunities waiting for investors. 

Moreover, we are witnessing the end of a 30-year secular downtrend in interest rates. As a consequence, bonds are no longer viable hedges for portfolios. At the same time, equities are at an all-time high in terms of P/E ratios. As inflation is bound to take an all-time high, it is in the best interest of investors to put their finances to use in the smartest way possible. 

Babylon is an Ethereum-based protocol that offers community-led asset management to help investors eliminate the knowledge gap and unlock incredible value through DeFi. There are a lot of investment opportunities in DeFi, but very few people know how to take advantage of them. To help overcome this problem, Babylon Finance has introduced investment communities in the form of “Gardens.” Based on a community-first approach, Gardens invite members to collaboratively deposit capital, suggest investment strategies, vote, and earn rewards. 

Babylon Finance enables users to tap into its ever-expanding universe of opportunity by joining Gardens, where they can invest in a thesis or asset class that matches their risk, time, and liquidity preferences. To execute this mechanism, Babylon integrates with multiple DeFi protocols that empower members with the tools they need to grow their assets. With a strong belief that crypto-assets are poised to become the best-performing asset class over the next two decades, Babylon Finance envisions providing easy access for everyone to explore this generational opportunity. 

The platform empowers the ever-growing community of investors to find the best strategies in the space by participating in Gardens that focus on different aspects of the crypto market. How to get started and make smart investments in the space of DeFi has been one of the most frequently asked questions lately. The main barrier that experts face is that it is not feasible to educate every single person one on one. Babylon is designed to create a multi-sided marketplace where a large number of members can benefit from the knowledge of DeFi from experts and strategists at the same time. 

Crypto has opened up an enormous opportunity for new investors, and the only way to take complete advantage of this new-age market is with an investment community. No single person can keep up with the pace in NFTs or DeFi (Decentralized Finance).

Babylon was conceptualized to solve this problem. The protocol was developed with a desire to share crypto investment opportunities with people that don’t have the time to get started. Even for existing individual investors, fees and gas costs can quickly eat into profits. But by investing as a community, members can crowdsource information, split investment costs and build wealth together.

This makes Babylon’s Garden the perfect platform to invest in DeFi. Gardens are super-charged investment clubs with all the power and composability of DeFi baked in. The protocol’s micro-governance model enables you to deposit, propose and contribute to the selection of investment strategies—all with the trustless benefits of the Ethereum blockchain, with BABL as the governance token behind it.

From amateurs to experts, Babylon is suitable for everyone who wants to share or get access to breakthrough strategies and gain maximum benefits from the market by following people they can trust. Babylon makes discussing strategies as easy as having a normal conversation on an instant messaging application. Essentially, every Garden is unique as it accommodates a range of investment thesis and enables deploying capital to different assets. By actively participating in capital deployment strategies, members of a Garden can claim rewards in $BABL, Babylon’s native token.

To ensure transparency and a community-first approach, Gardens use capital-weighted voting. Members can vote according to the number of Garden Tokens they hold, which they receive based on the amount of capital they deposit into the Garden. Voting is completely optional for members. 

Unlike other investing models where investors have to go through a series of aspects like slippage tolerance, max gas fees, and capital allocation limits, among others, Babylon’s flexible controls have been designed to manage all such aspects of the strategy to enable more control of every investment. The platform facilitates a minimum of 1% of the profits created through a strategy to those who voted on that particular strategy. In addition to this, a strategist can earn up to 14% of the profit share for proposing and deploying profitable strategies. When profit rewards are allocated to voters, they are divided proportionally to the number of Garden Tokens that each voter has used to vote on the strategy.

Additionally, community members of each Garden have the right to collaboratively choose where to deploy their capital and which protocols to use. By enabling such a visionary concept, Babylon Finance aims to provide a rich set of integrations and incentives for strategists as well as limited partners. Developed and designed to be a positive-sum game, the founders’ goal is to provide as much liquidity to the ecosystem as possible by transforming investing into a multi-player experience. 

“For the first time ever, you can join an on-chain investment club and build wealth together with others. Minimize costs, crowdsource information and consolidate your transactions. Babylon is transforming investing from a single-player into a multiplayer experience.” adds Ramon Recuero, co-founder of Babylon. 

As of today, over 1300 users have deposited around $20M into the protocol via 100 investment clubs (gardens). But now, Babylon is coming out of private beta by the end of March 2022. So, it is calling all DeFi investors, experts, and people working on a DeFi protocol to collaborate and invest as a community.

Changing the Dynamics of Investing by Enabling Community-Led Asset Management   was last updated May 10th, 2022 by Linkin Pubal