Earn on BABEL(babel.fi)

Brief Introduction

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

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

What is LAI？

LAI is a stablecoin used to pay out loans on the Babel Protocol. At any time it can be redeemed against the underlying collateral at face value.

What is BABEL？

BABEL is the secondary token issued by the BABEL protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters and Frontend Operators. BABEL rewards will only accrue to Stability Providers — i.e. users who deposit LAI to the Stability Pool, frontends who facilitate those deposits, and liquidity providers of the LAI/BNB Pancake LP pool. As technical rewards, they are based on a preprogrammed functionality of the protocol and not on a claim towards BABEL or any third party.

Earn on BABEL

Stability Pool Mining

After opening the "Stability Pool", you’ll find a page that looks something like this:

Users can stake any amount of LAI to get BABEL rewards, it's worth mentioning that there remain two kinds of reward in Stability Pool:

• 【Unclaimed BABEL Rewards】 — It will be distributed according to your participation in the pool, totals 32 million BABEL, producing half by mining per year, 16 million for the first year.

• 【Unclaimed BNB】— LAI in the current stability pool used as the liquidation fund to obtain 110% of the liquidation collateral, and the collateral obtained in the liquidation will be distributed according to the proportion in the pool.

BABEL Pool

Users can stake any amount of BABEL to get LAI rewards, which will be distributed according to the share of your participation in the pool.

• 【Unclainmed LAI】: It shows a 0.5% fee on all user's lending LAI, and will be distributed according to your share of participation in BABEL Pool, for example, the current share of possession of the BABEL pool is 10%, and thereafter the user generates $100 million in LAI lending, then you will get a share of $50,000 LAI in that pool.

• 【Unclaimed BNB】: It shows the redemption rate, users can use 1LAI to get $1 worth of collateral BNB from the system at any time, we call this operation "Redemption", users need to pay a minimum 0.5% fee for Redemption, the fee will be distributed proportionally by the BABEL pool users.

BNB-LAI LP Mining

Currently we are building an LAI/BNB rewards pool for Pancake V1 with a total of 1.33 million BABEL for 6 weeks of rewards activity, after 6 weeks we will assist the community in migrating the liquidity pool to Pancake V2.

Borrow LAI

Stake BNB, create vaults and lend LAI without fee; the vault needs to maintain a minimum debt of 200 LAI, but you can repay all debts and close the vault. After creating a vault, users can stake BNB to obtain LAI, the LAI you receive will be proportionate to how much of the BNB you stake, and any amount of LAI can be lent provided that the collateral ratio is greater than 110%. There is only a 0.5% fee for lending LAI, no interest rate to pay for lending.

• Collateral ratio will change with the value of collateral and debt. The minimum accepted ratio is 110%. We recommend a ratio over 150% to keep your vault safe from liquidation.

Reference

Tutorials

https://babelfi.gitbook.io/babel-fi/babel-tutorial/how-to-use-babel.fi

Contract Address

https://babelfi.gitbook.io/babel-fi/documentation/contract-address