“At BabelFish, we’re fixated on stablecoins as a decentralized financial system catalyst. As a result, our mission is to make it easier for it to flow and exchange, as well as to reduce risk and protect users’ funds. BabelFish adds and distributes a variety of stablecoins, making it easier and more efficient to use crypto dollars in various protocols. Our goal is to expand the liquidity, market, and accessibility of the various stablecoins abstracted in XUSD. The alpha product’s primary goal is to bring dollar liquidity to Rootstock (RSK), but in the long run, we plan to enable 1:1 exchange between various stablecoins and chains in demand, as well as the ability to save and earn interest in rBTC and FISH. We’re thrilled to announce that RDOC will be supporting the Babelfish stablecoin protocol! ”
BabelFish is the largest stablecoin on RSK, aggregating liquidity from a variety of issuers and chains. Within two months of going live on mainnet, the meta-stablecoin XUSD had accumulated $10 million in deposits.
The RSK defi ecosystem has seen a significant increase in the number of solutions and integrations over the past year, and BabelFish intends to play a key role in facilitating this as a stablecoin gateway. The rapid rise in popularity and acceptance of XUSD indicates a strong desire among users to port their stablecoins to Rootstock and experiment with DeFi on Bitcoin.
Sovryn, a DeFi project launched earlier this year and the first to integrate XUSD into its bridge and frontend to simplify UI/UX and provide deep stablecoin liquidity, is largely responsible for BabelFish’s initial growth. For its upcoming token sale, BabelFish will also use Sovryn’s Origin platform. The money raised will go toward supporting the decentralized team and integrating more stablecoins, bridges, and protocols.
BabelFish’s DAO aims to reward stablecoin research, development, and competition in order to facilitate stablecoin flow across chains and reduce idiosyncratic risks. The protocol currently accepts Ethereum, Binance, and RSK stablecoins. “…the market remains fragmented, two players control >85% of the total USD-stablecoin float, and systemic risks abound,” according to the project’s written materials. We should not rely on one or two issuers of USD-stablecoins in the decentralized economy, but rather allow a thousand stablecoins to bloom and communicate with one another to achieve mass adoption.“
The Mission of BabelFish
As the markets for stablecoins and DeFi develop across chains, their combined USD liquidity becomes fragmented, which is not ideal for the industry. BabelFish combines these fragmented liquidity swamps to create a liquidity lake with more liquidity and a more user-friendly interface.
BabelFish addresses these issues by acting as a decentralized aggregator and distributor of stablecoins, allowing users to vote on the protocol’s direction. BabelFish functions as a stablecoin dBank with branches all over the DeFi multi-chain universe, allowing stablecoins to be exchanged 1:1 across chains while surviving market distortions. If a user wants to use her stablecoin on another chain, she can stick it on BabelFish and seamlessly get a convertible stablecoin on the other side.