A look at Babel Protocol

2 min readApr 28, 2021

Babel Protocol and Stablecoin LAI

The stablecoin LAI for BNB at no fees.

Babel provide service based on the Liquity protocol on BSC.

Babel Protocol（babel.fi） is a crypto lending protocol based on Binance Smart Chain to mint BNB to obtain loans without fees.

Loans is pegged by Stablecoin LAI with the minimum mortgage rate of 110%. Babel Protocol(babel.fi) designs are architected and forked based on Liquity project on Ethereum without changing smart contract coding and no owner.

Babel.fi completely retained these features of Liquity without changing smart contract coding, and only burn the excessive tokens given to the Liquity’s team and investors.The idea of Babel.fi is “Fair Launch” to provide more incentives to users for supporting enlarge needs of native stablecoin assets on BSC ecosystem.

Babel Protocol Features

First no interest stablecoin LAI on BSC

Stake BNB and borrow with free interest. Loan be paid with stablecoin LAI which anchor dollars, the minimum collateral rate is 110%.

Fair Launch

Babel.fi havent adjust token supply and token distribution approach, only burn distribute to team and investor’s tokens in Liquity economic model.
Governance token BABEL economic model https://babelfi.gitbook.io/babel-fi/babels-initial-token-distribution-plan

Code of Safe Practice,Fork Liquity codes

Babel.fi forked Liquity project on Ethereum, without changing smart contract codes. It also keeps main smart contract feature: no owner.
Babel&Liquity coding comparison：https://babelfi.gitbook.io/babel-fi/security-audits

BABEL Token Distribution Plan

100 million in Total

1. 1,330,000 distributed to LAI/BNB LP mining reward pool, released in six weeks

2. 32,000,000 is allocated to LAI pledge pool rewards, which halved locked and released each year, 16,000,000 for the first year.

3. 3,880,000 is allocated to address A, 2.000,000 is reserved for address A, and 1,330,000 is used as BABEL/BNB reward. After 500,000 airdrop to Liquity users, 200,000 will be airdropped when TVL reaches 100 million US dollars, and 300,000 will be airdropped when it reaches 500 million US dollars.

4. 6279 0000 is allocated to address B (address B is only allowed to be transferred to address 0 or lockup address within one year), of which 10,000,000 is used as a community building incentive, unlocked in an average 5 years, and 52,790,000 is burned at address 0.