The crazy world of crypto keeps getting crazier, and in a good way!!! I love creating Passive Income streams with my crypto holdings and get away from the volatility of day-trading.
There are numerous platforms that support ETH staking and within a few clicks, you can easily stake your desired amount of ETH & start earning passive income on it. The biggest downside? the low Return-on-investment. Today we will discuss a platform where currently you can earn upto 26.65% yield on your ETH with a target APY of 15%. Sounds awesome? Lets dive in…
The Fountain of ETH ⛲️
Currently on babylon.finance , the beauty of this method is growing your ETH stack without the financial burden of gas-fees 🤯
within this whole ecosystem, a user stakes ETH in a low-risk environment without the risk of fiat price fluctuation. So basically, the contract is treating 1 ETH = 1 ETH and not 1 ETH = $3,000, which is commendable in my opinion.
One thing to note about the entire process is that the deposit has to be with WETH (Wrapped Ethereum) and the deposit on the mainnet is gas-free (0 transactional cost). This is native to Babylon and they refer to it as Gasless Deposits.
The ideology behind it
Babylon Finance believes that DeFi needs to have a lower cost of entry for all traders and should be more accessible to people. In recent times, as the price of ETH increased and transactions on the ETH network also jumped, ETH gas fees also sky-rocketed, leading to many retail traders missing the DeFi boom due to this high cost of entry.
How does it work?
The whole mechanism works on what Babylon.Finance refers to as signature-based deposits & withdrawals
During the deposit process, the user does not need additional ETH to successfuly execute the transaction. Either the fees get deducted from the asset being deposited or the garden subsidises the deposit fees.
The biggest headache with DeFi & interacting with smart contracts is the 100s of transactions that pile up against your account. These numbers really add super-fast before you can even notice and the nightmare begins when you have to file you taxes.
Again Babylon.Finance has this sorted by consolidating all the transactions of a user into just two transcations, Deposit & Withdrawal.
The Heart of Babylon
Babylon.Finance has its own native governance token in the form of $BABL. Being a governance token, it ensures that Babylon is owned by users. Currently 69% of the circulating supply of $BABL belong to the community. $BABL is a ERC-20 token.
- Max Supply of $BABL- 1 Million tokens
- Total Supply Minted- 1 Million tokens
Current token distribution break-up:
- 69% of total supply of $BABL belong to the Babylon community members. Majority of this chunk will be distributed to Gardeners, Strategists, Stewards, and Liquidity Providers as part of the BABL Mining Program.
- 19% allocated to Seed investors, partners, and advisors. This allocation has a 3 year vesting period.
- 10% allocation to Team members. This allocation has a 4 year vesting period.
- 2% allocation Reserved for a future distribution round.
Also users who stake ETH will earn $BABL mining rewards over and above the staking rewards.
There are some more advanced leverage strategies with ETH, stETH & WETH with involvement of the Aavesome platform without the risk of liquidations, but since I want to keep this article for beginners, I won’t be touching that topic for now.
If you found this article helpful, please do leave your comments on this article and I would be super happy to interact with you.
Start your trading journey & buy ETH with CoinDCX in easy steps:
- Signup with your Name, Email and mobile number
- Accept the CoinDCX’s terms of service
- Complete your KYC verification and add your bank account details
- Once approved, deposit Fiat through your approved bank account or transfer crypto from your other crypto wallet and you are done.