"What else can we do to participate in Babylon?"

- Yesterday, @babylon_chain announced the financing news: it completed a $70 million financing led by @paradigm. Babylon's "Bitcoin Shared Security" is really a sexy story: it can not only improve the security of the POS chain, but also activate the dormant BTC so that holders can enjoy interest income. In addition, Babylon has provided a very innovative technical solution that can ensure the security of BTC funds at one level (I have previously disassembled Babylon's test staking steps, and those who are interested can take a look: https://x.com/portal_kay/status/1792414546604458117).

- You may be concerned about what other opportunities there are to participate in the project, so here is a summary:

📌 1. Secondary purchase of Pioneer Pass NFT

- This is a test network event launched by Babylon in February. The first 100,000 participants can receive an NFT (Bitcoin Staking Pioneer Pass). It was extremely popular at the time, and the 100,000 test spots were quickly filled. At present, holding a Pioneer Pass is the most likely chance to win a later airdrop.

- I recommended the Pioneer Pass in a communication group half a month ago, and the price at that time was about 98.7U. After yesterday's financing announcement, the current price is about stable at 123U. Overall, I think the cost performance is still relatively high. The evaluation logic is as follows: Assuming that the total market value of Babylon after its release is A, the probability of holding an NFT to issue an airdrop is X%, and the airdrop token accounts for the overall proportion Y%, and then divided by the total number of NFTs 98.65K, it can be calculated: Single NFT airdrop income = A*X%*Y% ÷ 98.65K.

📌  2. Participate in the Galaxy event Bitcoin Staking Chronicles

- In order to cooperate with the newly launched testnet activity Testnet-4, the Galaxy mission was launched simultaneously. The following is the key information of the event:

🔹 Quest address: https://app.galxe.com/quest/Babylon/GCyyntz73L
🔹 Quest reward 1: Accumulate loyalty points, unlock OG community roles, and eventually obtain USDC prize pool competition qualifications;
🔹 Quest reward 2: Galaxy OAT certificate, which can be used as proof of Babylon reward redemption and event participation.

‼ ️ Attention‼ ️ The first batch of 5 sBTC staking quotas for Testnet-4 was full in less than half an hour on Tuesday afternoon. The time for the opening of the new quota will be announced next Monday.

📌  3. Deploy nodes

- According to the official instructions, users can perform three sets of operations to join the Bbaylon test network: 1) Become a Babylon CometBFT validator and accept Babylon test token delegation; 2) Become an end provider and accept signet BTC delegation; 3) Self-delegate BTC to the end provider in a trustless manner to obtain voting rights.

- I did not participate in this part myself. If you are interested, you can refer to the official document: https://docs.babylonchain.io/docs/user-guides/btc-staking-testnet/deployment-overview

📌 4. Learn Babylon project materials

- Most friends may not be willing to do this step, so it is put at the end. List some good Babylon project materials:

1) "Babylon Project White Paper" https://docs.babylonchain.io/papers/btc_staking_litepaper(CN).pdf
2) "Is Babylon the Sky Garden of Bitcoin? 》https://x.com/cmdefi/status/1784895591782195229
3) 《Babylon’s Vernacular Analysis》https://twitter.com/Eth527/status/1788435578553561320
4) 《Bitcoin Staking Solution Babylon In-depth analysis》https://mp.weixin.qq.com/s?__biz=MzUxNDY5NjkwMA==&mid=2247487676&idx=1&sn=8e0339926ec9fc6abef9b9a44c02482d&chksm=f940a317ce372a01f034929c19ffb5d64afd5d4539355f9dcee9b08b9b4fa8f2b26c76ca5bf9
5) 《“Three chains in one”, undervalued Babylon》https://www.binance.com/zh-CN/square/post/8042622710114

📌  One more thing to say at the end

- After this round of runes, I feel more and more the importance of “daring to hold a heavy position”. If you cast a wide net and participate in every project, the final rate of return may be similar to the increase of the market. The rate of return cannot be higher than investing heavily in a high-quality project.

- But how can you motivate yourself and have the confidence to invest heavily in a project? If you are very gambling and dare to go all-in on any project, you probably won't read this article. For crypto users who are not naturally gambling, I think it's stupid, but the only way is: do in-depth investment research in the early stage, communicate with people who know the industry, and have a deeper understanding of the project.

#Babylon #staking

[Investment Research] "How does Babylon achieve BTC "trustless staking"? —— Analysis of BTC's first-layer staking steps"

- Last week, @babylon_chain community test event bbn-test-3 has ended. I wonder if everyone has participated?
- The biggest highlight of the Babylon project is that it allows BTC to achieve "trustless staking". Simply put, BTC assets can participate in staking activities and obtain benefits without leaving the control of their own wallets.
- When participating in the test before, I found that Babylon's staking process requires a total of 5 steps. The so-called "trustless staking" is achieved through these 5 steps. Next, let's take a look at how these 5 steps work.

[Acknowledgements] When disassembling the entire staking process, I asked Chang Nima Laoshi about the implementation mechanism of BTC UTXO transaction construction and different signature methods. Thank you very much. However, we can't see the specific source code of Babylon's implementation of staking, so the disassembly implementation mechanism may be wrong. Welcome to criticize at any time.

1️⃣ Create a pledge transaction (BTC network)

- The first step is to create a pledge transaction on the BTC network. This transaction needs to achieve two functions: 1) Using BTC's time-lock script, the BTC involved in the pledge is locked and not allowed to be used; 2) Punishment transaction, which is to prevent users from committing evil in the future (such as using their own pledged BTC to attack the POS chain) and can be punished (Slashing), and the pledged BTC will be destroyed.

- The punishment here is the use of EOTS signatures (Extractable one-time signatures, extractable one-time signature scheme), which allows the private key to be automatically extracted from the signature generated by malicious behavior when the user commits evil. Babylon will spend the "output" of the pledge transaction on a destruction address, turning it into an unspendable transaction output.

2️⃣ Create a pledge contract and release the pledge transaction (BTC network)

- This step mainly implements two operations. The first is to create a pledge contract, that is, to create a covenant to determine the operation of step 1 above in the form of a contract; the other operation is to create an unbonding transaction. The core purpose of this operation is to allow users to use their private keys to redeem these assets and reuse these BTC after the lock-up period ends.

3️⃣ Create a de-staking contract (BTC network)

- This step is to create restrictive clauses (covenants) for de-staking BTC. That is, to build a de-staking contract and finally realize the BTC redemption operation.

- The above three signatures are finally realized in the same BTC transaction (as shown in the figure below). Here, multiple branches in a transaction are actually realized through multiple signatures, which can be understood as a transaction to realize the three operations of staking, punishment, and redemption.

- In addition, we found that in this transaction, our BTC was still sent to an unfamiliar wallet. I was very curious about this at the time. Didn’t Babylon claim that the funds would not be out of the control of the wallet? How could BTC be sent to an unfamiliar wallet? Later, after consulting, I understood that because the private key was originally the only condition for BTC UTXO, but when conditions such as time-lock were added, a new wallet must be created in the end to achieve multi-condition unlocking. The private key of our original payment wallet is one of the necessary conditions to unlock the new wallet UTXO, so in the end, to redeem this UTXO, we still need to use the private key of our payment wallet.

4️⃣ Bind the reward account (Babylon network)

- At the last two steps, the entire staking process is basically completed. The fourth step is mainly to bind your wallet address and the BTC staking event completed in the first 3 steps on the Babylon network, so that your Babylon wallet has the qualification to obtain staking rewards.

5️⃣ Bind the reward account (BTC network)

- The last step is still completed on the BTC network, the purpose is to bind your BTC wallet to the staking behavior of Babylon on the POS chain (this step is more questionable, just look at the literal meaning of the interpretation, in fact, I don’t understand the necessity of this step).

Well, at this step, our staking operation is completed, and the final confirmation of the transaction will take another 7 BTC blocks.

#BTC #Babylon #staking #restaking

【03.29 Update】▣ Runes concept project summary

🔗 Link: https://portalkay.notion.site/Runes-d3f3700e623a448e8cc8d57f8dc2e439

As Casey released the latest documentation of the Runes protocol yesterday (https://twitter.com/rodarmor/status/1773152223406547415) and indicated that the protocol code should be completed within this week, everyone’s expectations for Runes have also become higher. 🚀🚀

- However, in the past three days, the asset market value of rune concept projects has been declining as a whole, with the decline rate being basically more than 20%.
- Those with the largest decline, such as Gamestone, have dropped by about 50% from the 3.27 update to today.
- Except for the most popular Runestone, whose market value has basically remained stable, Hoodinalonbtc is considered a standout among the entire rune sector, rising by 63.4% in the past few days!

The following updates will be made on 2024.03.29:
1️⃣ Update the "total market value" of all published asset projects;
2️⃣ New fields: official Twitter, activity level;
3️⃣ Activity: mainly judged by the latest posting time of the official Twitter. Generally, if the official Twitter has not made any updates for two weeks and the overall popularity is ≤🔥🔥🔥, it will be judged as "inactive" and the project information will be folded.

#Runes
#Runestone #Ordinals #GetStoned