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| # Overview & Concepts | ||
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| Babylon provides Bitcoin-native infrastructure for the decentralized economy. The protocol enables trustless interaction with Bitcoin state and native Bitcoin staking directly on the Bitcoin blockchain. | ||
| Placeholder content for overview documentation. |
There was a problem hiding this comment.
Replace placeholder sections with actual documentation text
This change swaps substantive generated content for placeholder strings (e.g., "Placeholder content for overview documentation."), which reduces llms-ctx.txt/llms-full.txt from full context files to stubs and removes most of the protocol/staking/operator details that downstream LLM crawlers rely on. Since these files are published artifacts for AI discoverability, serving placeholders is a functional regression that will degrade answer quality and omit critical docs coverage.
Useful? React with 👍 / 👎.
Greptile SummaryThis auto-generated PR syncs three
Confidence Score: 2/5
Important Files Changed
Flowchart%%{init: {'theme': 'neutral'}}%%
flowchart TD
A[LLM / AI Consumer] --> B[llms.txt\nIndex + metadata\n76 lines]
A --> C[llms-ctx.txt\nContext-rich version\n179 lines]
A --> D[llms-full.txt\nFull content version\n185 lines]
B --> E{Link to /overview/}
E -->|404 - wrong path| F[❌ Broken URL\nShould be /guides/overview/]
C --> G{Documentation sections}
D --> H{Documentation sections}
G --> I[❌ Placeholder content\nfor Overview, Developers,\nOperators, Stakers]
H --> I
C -.->|Nearly identical| D
Reviews (1): Last reviewed commit: "chore: sync llms.txt files from generato..." | Re-trigger Greptile |
| # Overview & Concepts | ||
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| Babylon provides Bitcoin-native infrastructure for the decentralized economy. The protocol enables trustless interaction with Bitcoin state and native Bitcoin staking directly on the Bitcoin blockchain. | ||
| Placeholder content for overview documentation. | ||
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| #### Products | ||
| ## Developer Documentation | ||
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| - **Trustless Bitcoin Vault**: A toolkit that securely connects Bitcoin on-chain state to external smart contracts (e.g. Ethereum) and systems. By combining on-chain contracts, light-client proofs (ZK SNARKs), and independent indexers, it enables verifying Bitcoin consensus and UTXO state in other chains or applications without trusting any single third party. | ||
| - **Bitcoin Staking**: Enables native bitcoin staking directly on the Bitcoin blockchain without intermediaries. | ||
| ### Developer Documentation Overview | ||
| Source: https://docs.babylonlabs.io/developers/ | ||
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| #### Trustless Bitcoin Vault | ||
| # Developer Documentation | ||
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| Key capabilities: | ||
| - **Trustless verification**: No need to trust individual nodes or custodians; security is enforced by cryptographic proofs and on-chain rules | ||
| - **Verifiable light clients**: Provide provable, compact attestations of Bitcoin consensus to target chains | ||
| - **Modular architecture**: Indexer, prover, and contract layers are separated so each can be swapped or upgraded independently | ||
| Placeholder content for developers documentation. | ||
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| #### Bitcoin Staking | ||
| ## Operator Documentation | ||
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| Key features: | ||
| - **Trustless staking**: BTC remains native with no wrapped assets | ||
| - **Self-custody**: Stakers maintain direct control of their Bitcoin | ||
| - **Fast unbonding**: Stake withdrawal period of just a few days | ||
| - **Slashing capability**: Protocol-enforced penalties for security violations | ||
| ### Operator Documentation Overview | ||
| Source: https://docs.babylonlabs.io/operators/ | ||
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| When implemented at scale, Bitcoin represents the largest potential staking capital pool in the web3 ecosystem. | ||
| # Operator Documentation | ||
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| #### Security Model | ||
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| Babylon implements the following security guarantees: | ||
| - **PoS Security**: Security violations trigger automatic slashing of a portion of the Bitcoin stake | ||
| - **Staker's Security**: Staked Bitcoin remains recoverable contingent on network compliance by the staker or delegated validator | ||
| - **Withdrawal Assurance**: Unbonding operations execute securely without requiring consensus coordination | ||
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| #### Babylon Genesis | ||
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| Babylon Genesis is a Cosmos SDK-based blockchain that serves as the coordination layer for the Babylon protocol. It provides native IBC (Inter-Blockchain Communication) protocol support and CosmWasm compatibility for smart contract deployment. | ||
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| ### Bitcoin Staking | ||
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| Bitcoin staking in Babylon protocol enables BTC holders to lock their assets in a time-bound contract as security collateral, earning rewards for securing networks. The protocol implements a slashing mechanism where staked assets may be forfeited if protocol security rules are violated. | ||
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| #### Native Bitcoin Staking Implementation | ||
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| Babylon's staking mechanism is built directly on Bitcoin's UTXO model and native scripting capabilities. This differs from traditional cross-chain staking solutions that require wrapping or bridging Bitcoin to external networks. | ||
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| **Core Requirements:** | ||
| - Self-custody: Stakers maintain direct control of their Bitcoin | ||
| - Trustless execution: No reliance on third parties | ||
| - Native operation: Direct integration with Bitcoin blockchain | ||
| - Slashing capability: Protocol-enforced penalties for malicious behavior | ||
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| **Technical Implementation:** | ||
| The staking mechanism leverages Bitcoin's UTXO model, allowing holders to create multiple UTXOs with distinct spending conditions defined through Bitcoin scripts. These scripts form the basis of staking contracts with the following conditions: | ||
| 1. Holder's cryptographic signature | ||
| 2. Time-lock expiration | ||
| 3. Covenant committee consensus (for slashing) | ||
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| The protocol introduces Extractable One-Time Signatures (EOTS) and a covenant committee to enable slashing functionality. The committee can execute slashing through majority consensus if malicious behavior is detected. | ||
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| #### Staking Architecture | ||
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| Bitcoin Staking enables BTC holders to delegate their assets to Finality Providers. This architecture forms the foundation of Babylon's security model. | ||
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| **Protocol Components:** | ||
| 1. **Staking Contract**: Bitcoin script-based security mechanism with covenant committee integration, facilitated via Babylon Genesis | ||
| 2. **Finality Provider**: Delegated validators for chain or data validation | ||
| 3. **Babylon Genesis**: Coordination layer that tracks staking state and distributes rewards | ||
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| **Security Properties:** | ||
| 1. **Slashable PoS Security**: Guaranteed partial stake forfeiture upon safety violations | ||
| 2. **Asset Safety**: Guaranteed withdrawal capability for honest stakers and validators | ||
| 3. **Liquidity Assurance**: Secure, efficient unbonding without social consensus requirements | ||
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| ### Babylon Genesis Overview | ||
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| Babylon Genesis is the coordination layer for the Babylon protocol, serving as the control plane for Bitcoin staking security and liquidity orchestration. Built on the Cosmos SDK framework, Babylon Genesis introduces key innovations for enhanced PoS security and interoperability. | ||
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| #### Consensus & Security Model | ||
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| Babylon Genesis introduces a multi-staked CometBFT (Tendermint) consensus mechanism: | ||
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| 1. **Bitcoin Staked**: BTC holders can stake their assets directly on the Bitcoin network in a self-custodial manner without wrapping or bridging. These BTC stakers delegate to a Finality Provider who enhances the security of the PoS chain. | ||
| 2. **BABY Staked**: BABY token stakers delegate to CometBFT validators who oversee block production and consensus operations. | ||
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| #### Bitcoin Timestamping & Checkpointing | ||
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| Babylon Genesis leverages Bitcoin's blockchain to timestamp events from other blockchains, providing an additional layer of security and data integrity. This process: | ||
| - Creates immutable anchoring between Bitcoin's ledger and Babylon Genesis | ||
| - Mitigates vulnerabilities in PoS chains, such as long-range attacks and double-signing | ||
| - Enhances overall security through Bitcoin's proven consensus mechanism | ||
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| #### Features Overview | ||
| - **Bitcoin Integration:** Direct connection to Bitcoin for staking and timestamping via bitcoin scripts | ||
| - **Bitcoin Staking:** Native BTC staking and timestamping mechanisms, and Extractable One-Time Signature (EOTS) | ||
| - **Scaling Transactions:** Aggregates timestamps and checkpoints to minimize Bitcoin transaction costs | ||
| - **Multichain Communications:** Seamless communication with other chains via the IBC protocol | ||
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| #### Native Token: BABY | ||
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| - **Name**: BABY | ||
| - **Total Initial Supply**: 10 Billion | ||
| - **Decimals**: 6 | ||
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| BABY works alongside staked Bitcoin, with BTC providing the economic security guarantees while BABY enables protocol operations and governance. | ||
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| **Token Utility:** | ||
| 1. Transactions / Gas Features | ||
| 2. Governance | ||
| 3. Staking & Security | ||
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| #### Development Phases | ||
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| **Phase 1: Bitcoin Staking** | ||
| - Enabled Bitcoin holders to stake their BTC using a secure, self-custodial staking script directly on Bitcoin | ||
| - Over 57,000 BTC were staked | ||
| - Established Bitcoin as a top 10 staking asset by market cap | ||
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| **Phase 2: Babylon Genesis Launch** | ||
| - BTC stakers actively provide security to Babylon Genesis | ||
| - Demonstrates security features (e.g. slashing) of Babylon Staking Protocol | ||
| - Provides base staking rewards to BTC stakers | ||
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| #### Babylon Genesis Validators | ||
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| BGC's block production process is safeguarded by Genesis Chain Validators. They are nodes that validate transactions, produce blocks, and help secure the Babylon Genesis Chain. | ||
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| #### Finality Providers | ||
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| Finality Providers play a crucial role in securing not only PoS blockchains but also decentralized systems that require data validation. They manage their Extractable One-Time Signature (EOTS) keys, submitting signatures using public randomness. | ||
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| ### Architecture | ||
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| The Babylon network has a layered architecture composed of Bitcoin scripts, Babylon node built on Cosmos SDK, Finality Providers, and peripheral software solutions designed to securely interact with Bitcoin Chain so it can facilitate Bitcoin staking. | ||
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| On the top layer, Babylon ensures Bitcoin Chain and Babylon Genesis are securely connected and synchronized by using Checkpointing. It also keeps track of Bitcoin holders' staking transactions with a BTC staking monitor and indexer. The Vigilante network monitors the Bitcoin Chain and Babylon Genesis for any malicious activities. | ||
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| The middle layer is the Babylon node. It is built on Cosmos SDK and implements the Babylon Bitcoin staking logic with eight core modules: Babylon Epoching, Checkpointing, BTC Checkpointing, BTC Light Client, Zone Concierge, BTC Staking, Finality, and Rewards. | ||
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| At the bottom layer, EOTS Manager and Finality Provider nodes provide the means for group signatures and validating the data of an external network. Covenant Emulator provides enforcements on the transaction data for staking, unbonding and slashing. | ||
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| ### BTC Staking Program | ||
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| Software solutions related to Bitcoin Staking processes including Finality Providers and EOTS Manager. | ||
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| ### Finality Providers | ||
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| Finality Providers are critical components of the BTC staking program. The detailed documentation is maintained in the [finality-provider GitHub repository](https://github.com/babylonlabs-io/finality-provider). | ||
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| ### BABY Tokenomics | ||
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| | Property | Details | | ||
| |----------|---------| | ||
| | Token Name | BABY | | ||
| | Total Initial Supply | 10,000,000,000 BABY (10 Billion) | | ||
| | Denomination | ubbn (micro BBN) | | ||
| | Decimals | 6 (1 BABY = 1,000,000 ubbn) | | ||
| | Inflation Rate | 5.5% per annum (reduced from 8%) | | ||
| | Governance | On-chain via BABY token voting (BTC stakers do not participate) | | ||
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| #### The Role of BABY in Babylon Genesis | ||
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| BABY is the native token of Babylon Genesis. It serves as the gas token for Babylon Genesis, facilitating transactions and smart contract execution. It also enables governance, allowing token holders and their delegated validators to vote on protocol changes and network upgrades. | ||
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| #### Dual Staking & Security Model | ||
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| Babylon Genesis employs a dual staking model, utilizing both BABY and BTC to strengthen network security. Both Bitcoin stakers and BABY stakers contribute security and receive BABY rewards. | ||
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| #### Token Distribution | ||
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| | Category | Allocation (BABY) | Allocation (%) | Vesting | Unlocking | | ||
| |----------|-------------------|---------------|---------|-----------| | ||
| | Community Incentives | 1,500,000,000 | 15% | No | Fully unlocked | | ||
| | Ecosystem Building | 1,800,000,000 | 18% | No | Yes, across 3 years | | ||
| | R&D + Operations | 1,800,000,000 | 18% | No | Yes, across 3 years | | ||
| | Early Private Investors | 3,050,000,000 | 30.5% | No | Yes, across 3 years | | ||
| | Team | 1,500,000,000 | 15% | Yes, across 4 years | Yes, across 4 years | | ||
| | Advisors | 350,000,000 | 3.5% | Yes | Yes, across 4 years | | ||
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| **Community Incentives (15%):** 1.5 billion BABY tokens allocated for community incentives. Not locked and can be distributed at any time. Up to 400 million BABY tokens can be staked within this category. | ||
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| **Ecosystem Building (18%):** 1.8 billion BABY tokens for grants, bounties, investments, marketing and acquisitions. Unlocked over 3 years, with 25% unlocked at network launch, and the rest unlocked linearly starting at the first anniversary. | ||
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| **Research and Development + Operations (18%):** 1.8 billion BABY tokens for operations, research and development. Unlocked over 3 years, with 25% unlocked at network launch. | ||
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| **Early Private-Round Investors (30.5%):** 3.05 billion BABY tokens, following a 4-year unlocking schedule. First unlocking at the first anniversary, releasing 12.5%. Remaining tokens unlock linearly over 3 years. | ||
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| **Team (15%):** 1.5 billion BABY tokens with a 4-year vesting schedule, 1-year cliff followed by linear vesting. Subject to a 4-year unlocking schedule. | ||
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| **Advisors (3.5%):** 350 million BABY tokens with individual vesting schedules and the same 4-year unlocking schedule as the team. | ||
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| ### Governance | ||
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| #### Governance Framework | ||
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| Babylon Genesis employs an on-chain governance system built on the Cosmos SDK governance module. This module empowers BABY token holders, along with their delegates, to propose, vote on, and enact modifications to the network through a transparent and decentralized process. | ||
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| #### Governance Participants | ||
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| - **BABY Token Holders**: Participate in governance by voting on proposals and/or submitting new ones. | ||
| - **Babylon Genesis Validators**: Vote with staked tokens and delegated tokens (if stakers don't vote). | ||
| - **Babylon Foundation**: Provide forum for governance process as the steward of the community. | ||
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| #### Governance Parameters | ||
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| | Parameter | Value | Description | | ||
| |-----------|--------|-------------| | ||
| | Minimum Deposit | 50,000 BABY | Minimum tokens required for a proposal to enter the voting period | | ||
| | Maximum Deposit Period | 14 days | Maximum time to reach the minimum deposit for a proposal | | ||
| | Voting Period / Expedited | 3 days / 1 day | Duration of the voting period for standard proposals / expedited proposals | | ||
| | Quorum | 33.4% (>1/3) | Minimum percentage of voting power needed for a valid vote | | ||
| | Approval Threshold | 50% | Proportion of Yes votes (excluding Abstain) needed for approval | | ||
| | Veto Threshold | 33.4% (>1/3) | Proportion of NoWithVeto votes that can block a proposal | | ||
| | Expedited Approval Threshold | 66.7% (>2/3) | Higher threshold for expedited proposals | | ||
| | Expedited Voting Period | 1 day | Shorter voting period for urgent proposals | | ||
| | Expedited Minimum Deposit | 200,000 BABY | Higher deposit for expedited proposals | | ||
| | Burn Proposal Deposit (no quorum) | No | Deposit returned 100% if quorum is not reached | | ||
| | Burn Proposal Deposit (veto) | Yes | Deposit burned 100% if the proposal is vetoed | | ||
| | Cancel Burn Ratio | 50% | 50% of the Deposit is burned if the proposer cancels the proposal | | ||
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| #### Voting Options | ||
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| - **Yes**: Approve the proposal | ||
| - **No**: Reject the proposal | ||
| - **No With Veto**: Reject and express strong opposition (contributes to veto threshold) | ||
| - **Abstain**: Formally register participation without affecting Yes/No ratio | ||
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| #### Voting Inheritance | ||
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| If a staker does not vote, their validator's vote is automatically inherited. If the staker votes before its validator, it will not inherit from the validator's vote. If the staker votes after its validator, it will override its validator vote with its own. | ||
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| #### Proposal Types | ||
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| - **Text Proposals**: Proposals for signaling community sentiment or discussing ideas. | ||
| - **Parameter Change Proposals**: Modify specific blockchain parameters without changing underlying code. | ||
| - **Software Upgrade Proposals**: Coordinate chain-wide software upgrades with specific upgrade heights or times. | ||
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| Each type has two urgency levels: standard or expedited. | ||
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| **Standard Proposals:** Minimum deposit of 50,000 BABY, deposit period of 14 days, voting period of 3 days, approval threshold of 50%. | ||
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| **Expedited Proposals:** Higher minimum deposit at 200,000 BABY, shorter voting period of 1 day, higher approval threshold of 66.7%. | ||
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| #### Proposal Lifecycle | ||
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| 1. **Discussion**: Community discussion on the Babylon Foundation Forum, refinement based on feedback, recommended discussion period is one week. | ||
| 2. **Submission**: On-chain proposal submission with initial deposit, deposit period (up to 14 days) to reach minimum deposit. | ||
| 3. **Voting**: 3-day voting period once minimum deposit is reached. All staked BABY holders can vote. Validators vote with their delegated stake unless delegators vote directly. | ||
| 4. **Execution**: If approved, automatic implementation for parameter changes and fund transfers. Software upgrades are scheduled. Text proposals require manual implementation. | ||
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| #### Unsuccessful Proposals | ||
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| - **Pre-Voting Failures**: Deposit not burned, returned to contributors. | ||
| - **Quorum Failures**: Deposit not burned, returned to contributors. | ||
| - **Veto Situations**: Deposit burned fully. Only scenario where deposits are destroyed. | ||
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| ## Networks | ||
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| ### Mainnet | ||
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| Babylon Genesis is the world's first Bitcoin Supercharged Network (BSN) and acts as the control plane for security and liquidity orchestration across future BSNs. | ||
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| **Key Innovations:** | ||
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| 1. **Bitcoin Staking**: Self-custodial staking where BTC holders can stake directly, maintaining full custody. Dual quorum where BTC stakers delegate to finality providers while BABY token stakers delegate to Cosmos validators. | ||
| 2. **Bitcoin Timestamping**: Immutable anchoring of events from other blockchains to Bitcoin. Advanced PoS security protecting against long-range attacks. | ||
| 3. **Control Plane for BSN Ecosystem**: Orchestrating security and liquidity for all connected Bitcoin Secured Networks. | ||
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| **Current On-chain Ecosystem:** | ||
| - Over 57,000 BTC staked by early adopters | ||
| - Finality Providers use staked BTC to secure Babylon Genesis | ||
| - BABY token enables decentralized protocol governance | ||
| - Upcoming cross-chain integrations with L1s, rollups, and DeFi protocols | ||
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| ### Testnet | ||
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| Babylon Genesis Testnet is a public testing environment for developers and the community to safely explore, build, and experiment with features before mainnet deployment. | ||
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| **What Developers Can Do:** | ||
| - DApp Development: Deploy and test decentralized applications | ||
| - BTC Staking Integration (Test Mode): Experiment with Bitcoin staking mechanics | ||
| - Cross-Chain Messaging: Test interoperability features | ||
| - Validator & Finality Provider Operations: Run validator nodes in a risk-free environment | ||
| - On-Chain Governance Simulation: Propose and vote on protocol upgrades | ||
| - DeFi Primitives: Deploy and interact with DeFi primitives | ||
| - APIs & SDKs: Integrate and test API endpoints and SDK libraries | ||
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| ### Chain Information | ||
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| #### Babylon Genesis Mainnet | ||
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| | Property | Value | | ||
| |----------|-------| | ||
| | Chain ID | `bbn-1` | | ||
| | Chain Name | `Babylon Genesis Mainnet` | | ||
| | Binary Name | `babylond` | | ||
| | Version | `v1.0.1` | | ||
| | Genesis Date | `2025-03-15` | | ||
| | Genesis File | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/genesis.json) | | ||
| | Seed Nodes | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/seeds.txt) | | ||
| | Peers | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/peers.txt) | | ||
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| #### Babylon Genesis Testnet | ||
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| | Property | Value | | ||
| |----------|-------| | ||
| | Chain ID | `bbn-test-6` | | ||
| | Chain Name | `Babylon Testnet` | | ||
| | Binary Name | `babylond` | | ||
| | Version | `v2.3.1` | | ||
| | Genesis Date | `2025-10-12` | | ||
| | Genesis File | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-test-6/network-artifacts/genesis.json) | | ||
| | Seed Nodes | [Babylon Github](https://github.com/babylonlabs-io/networks/tree/main/bbn-test-6/network-artifacts/seeds.txt) | | ||
| | Peers | [Babylon Github](https://github.com/babylonlabs-io/networks/tree/main/bbn-test-6/network-artifacts/peers.txt) | | ||
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| ### Node Information | ||
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| #### Babylon Genesis Mainnet Endpoints | ||
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| Endpoints for Phase 2 Babylon Genesis Mainnet (`bbn-1`). | ||
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| **Nodes Guru:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC (Pruned) | `https://babylon.nodes.guru/rpc` | | ||
| | RPC (Archive) | `https://babylon-archive.nodes.guru/rpc` | | ||
| | LCD (Pruned) | `https://babylon.nodes.guru/api` | | ||
| | LCD (Archive) | `https://babylon-archive.nodes.guru/api` | | ||
| | gRPC (Pruned) | `babylon.nodes.guru:443` | | ||
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| **Polkachu:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC (Pruned) | `https://babylon-rpc.polkachu.com` | | ||
| | RPC (Archive) | `https://babylon-archive-rpc.polkachu.com` | | ||
| | LCD (Pruned) | `https://babylon-api.polkachu.com` | | ||
| | LCD (Archive) | `https://babylon-archive-api.polkachu.com` | | ||
| | gRPC (Pruned) | `babylon-grpc.polkachu.com:20690` | | ||
| | gRPC (Archive) | `babylon-archive-grpc.polkachu.com:20690` | | ||
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| #### Babylon Genesis Testnet Endpoints | ||
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| Endpoints for Phase 2 Babylon Genesis Testnet (`bbn-test-6`). | ||
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| **Nodes Guru:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC | `https://babylon-testnet-rpc.nodes.guru` | | ||
| | RPC Archive | `https://babylon-testnet-rpc-archive-1.nodes.guru` | | ||
| | LCD | `https://babylon-testnet-api.nodes.guru` | | ||
| | LCD Archive | `https://babylon-testnet-api-archive-1.nodes.guru` | | ||
| | gRPC | `https://babylon-testnet-grpc.nodes.guru` | | ||
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| **Polkachu:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC | `https://babylon-testnet-rpc.polkachu.com` | | ||
| | LCD | `https://babylon-testnet-api.polkachu.com` | | ||
| | gRPC | `http://babylon-testnet-grpc.polkachu.com:20690` | | ||
| Placeholder content for operators documentation. | ||
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| ## Staker Guides | ||
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| ### Stakers Overview | ||
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| Babylon Genesis implements a **dual-staking model** that combines the security of BTC (a PoW asset) with the efficiency of Proof-of-Stake consensus. Both BTC holders and BABY token holders can participate in securing the network while earning rewards. | ||
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| #### Bitcoin (BTC) Staking | ||
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| BTC staking enables Bitcoin holders to stake their assets directly on the Bitcoin network in a self-custodial manner without wrapping or bridging. BTC stakers delegate to Finality Providers who enhance the security of the PoS chain. | ||
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| Key Features: | ||
| - Self-custodial: Maintain direct control of your Bitcoin | ||
| - Native operation: No wrapped tokens or bridges required | ||
| - Trustless execution: No reliance on third parties | ||
| - Slashing capability: Protocol-enforced penalties for malicious behavior | ||
| - Flexible delegation: Delegate across multiple Finality Providers | ||
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| Benefits: | ||
| - Earn BABY rewards: 1% of annual inflation allocated to BTC stakers | ||
| - Co-staking rewards: Earn additional 2.35% annual inflation by also staking BABY tokens | ||
| - Secure the network | ||
| - Maintain Bitcoin ownership | ||
| - Fast unbonding: ~2 days compared to typical 21 days | ||
|
|
||
| #### BABY Token Staking | ||
|
|
||
| BABY staking is a native staking mechanism that secures the Babylon Genesis chain. BABY token holders delegate to chain validators to accrue inflationary rewards proportional to their stake. | ||
|
|
||
| Key Features: | ||
| - Epoch-based staking: Delayed execution queue for enhanced security | ||
| - Fast unbonding: ~2 days via Bitcoin timestamping protocol | ||
| - Governance participation: Voting power in chain governance | ||
| - Partial slashing: 5% slashing for double-signing violations | ||
|
|
||
| Benefits: | ||
| - Earn rewards: 2% of annual inflation allocated to BABY stakers | ||
| - Co-staking rewards: Earn additional 2.35% annual inflation by also staking BTC | ||
| - Governance rights | ||
| - Fast unbonding | ||
|
|
||
| #### Reward Distribution | ||
|
|
||
| The annual inflation (5.5%, reduced from 8%) is distributed among: | ||
| - BTC stakers: 1% of annual inflation (Finality Providers can charge commission) | ||
| - BABY stakers: 2% of annual inflation (CometBFT validators can charge commission) | ||
| - Co-staking rewards: 2.35% of annual inflation (for users staking both BTC and BABY) | ||
| - Finality Provider compensation: 0.075% of annual inflation | ||
| - Validator compensation: 0.075% of annual inflation | ||
|
|
||
| #### Risk Considerations | ||
|
|
||
| **BTC Staking Risks:** | ||
| - Slashing risk: 0.1% maximum penalty for protocol violations | ||
| - Finality Provider risk: Choose reliable Finality Providers | ||
| - Market volatility | ||
|
|
||
| **BABY Staking Risks:** | ||
| - Slashing risk: 5% penalty for validator double-signing | ||
| - Validator risk: Choose reliable validators | ||
| - Market volatility | ||
|
|
||
| #### Co-Staking | ||
|
|
||
| Co-staking allows earning additional rewards by staking both Bitcoin (BTC) and BABY tokens simultaneously using the same BABY address. Rewards come from a dedicated pool representing 2.35% of annual inflation. | ||
|
|
||
| Co-staking weight formula: | ||
| ``` | ||
| w = min(B_BABY / 20,000, B_BTC) | ||
| ``` | ||
|
|
||
| Where B_BABY = Total BABY staked, B_BTC = Total BTC staked to active Finality Providers. | ||
|
|
||
| Every 20,000 BABY staked makes 1 BTC eligible for co-staking rewards. The optimal ratio is 20,000 BABY per 1 BTC. | ||
|
|
||
| CRITICAL: Both BTC and BABY staking must use the exact same BABY address. If the addresses differ, you will receive ZERO co-staking rewards. | ||
|
|
||
| #### Fast Unbonding | ||
|
|
||
| Both BTC and BABY staking benefit from Babylon's Bitcoin Timestamping protocol: | ||
| - ~2 days unbonding vs typical 21 days | ||
| - Bitcoin checkpoint verification ensures security | ||
| - Automatic token release once confirmations are met | ||
|
|
||
| ### BTC Staking | ||
|
|
||
| There are several ways a user can perform self-custodial staking on Babylon, including through supported wallets, custody services, exchanges, and liquid staking token projects. | ||
|
|
||
| ### BTC Staking Tools | ||
|
|
||
| #### Wallets | ||
|
|
||
| **Extension Wallets supporting BTC Staking and Reward Claiming:** OKX, Onekey (including hardware), Bitget, Cactus, Keystone (hardware), Tomo, Unisat Wallet, Keplr, Cosmostation, Leap wallet, Imtoken, Binance, CoinEX, Coldlar. | ||
|
|
||
| **Mobile Wallets supporting BTC Staking and Reward Claiming:** OKX, Onekey, Bitget, Gate wallet, Unisat Wallet, Keplr, Cosmostation, Leap wallet, Coldlar (hardware via mobile). | ||
|
|
||
| #### Custody Services | ||
|
|
||
| Supported: Anchorage, Hex Trust, Cobo, Chainup, Ceffu, Amber, Bitgo. | ||
|
|
||
| #### Exchanges | ||
|
|
||
| Supported: Binance, Bitrue, OKX, Gate, Bitget, CoinEX, Coinone. | ||
|
|
||
| #### Liquid Staking Token Projects | ||
|
|
||
| Lombard (LBTC), Solv (SolvBTC.BBN), PumpBTC, Bedrock (UniBTC), Lorenzo (stBTC), Acorn/Amber (aBTC), Babypie (mBTC), pSTAKE (yBTC), Kinza (kBTC). | ||
|
|
||
| ### Unbonding via CLI | ||
|
|
||
| #### Prerequisites | ||
|
|
||
| - Running Bitcoin node (`bitcoind`) with a legacy wallet on Bitcoin mainnet | ||
| - BTC Staker installation (requires Go 1.21+) | ||
| - Babylon keyring with tokens | ||
|
|
||
| #### Setup Steps | ||
|
|
||
| 1. Download and extract Bitcoin Core binary (v26.0) | ||
| 2. Create and start bitcoind systemd service with `-deprecatedrpc=create_bdb -mainnet -server -txindex` | ||
| 3. Create legacy wallet using `bitcoin-cli -named createwallet wallet_name=btcstaker passphrase="<passphrase>" load_on_startup=true descriptors=false` | ||
| 4. Install BTC Staker from `https://github.com/babylonlabs-io/btc-staker.git` | ||
| 5. Configure `stakerd.conf` with Babylon and BTC node settings | ||
|
|
||
| #### Unbonding BTC Stakes | ||
|
|
||
| ```shell | ||
| stakercli daemon unbond \ | ||
| --staking-transaction-hash `your_staking_transaction_hash` | ||
| ``` | ||
|
|
||
| The unbond command builds the unbonding transaction, sends it to Babylon Genesis chain, waits for signatures from Covenant Emulators, then sends the transaction to the Bitcoin blockchain. | ||
|
|
||
| Minimum unbonding time: 301 BTC blocks. | ||
|
|
||
| #### Withdraw Staked BTC | ||
|
|
||
| ```shell | ||
| stakercli daemon unstake \ | ||
| --staking-transaction-hash `your_staking_transaction_hash` | ||
| ``` | ||
|
|
||
| Wait for staking/unbonding transaction timelock to expire before unstaking. | ||
|
|
||
| ### Geo Blocking | ||
|
|
||
| Babylon's staking website and API services excludes users from certain jurisdictions to comply with local regulations. | ||
|
|
||
| **Restricted Territories** (cannot load website): Afghanistan, Belarus, Bosnia and Herzegovina, Burundi, Central African Republic, China, Crimea, Cuba, Democratic People's Republic of Korea, Democratic Republic of the Congo, Donetsk Region of Ukraine, Eritrea, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Lebanon, Libya, Luhansk Regions of Ukraine, Mali, Myanmar, Nicaragua, Russia, Somalia, South Sudan, Sudan, Syria, Venezuela, Yemen, Zimbabwe. | ||
|
|
||
| **Excluded Jurisdictions** (can load website but cannot connect wallets): United States of America, Canada, Australia. | ||
|
|
||
| VPN IPs are also blocked based on a Cloudflare managed list. | ||
|
|
||
| ### Liquid Staking Tokens | ||
|
|
||
| Liquid Staking Tokens (LSTs) are tokens that stake on Babylon on behalf of token holders. They are intermediaries that enable individuals to participate in staking while maintaining liquidity. | ||
|
|
||
| When staking via LST protocols: | ||
| - The holder is not directly participating in Babylon staking | ||
| - The protocol manages the holder's stake and receives the points/rewards | ||
| - The holder is trusting the liquid staking protocol with their Bitcoin | ||
|
|
||
| LST protocols handle: managing staking transactions, performing delegation selection, handling reward distribution, maintaining the proper ratio between staked BTC and LSTs. | ||
|
|
||
| ### BABY Staking | ||
|
|
||
| BABY staking is a native staking mechanism that secures the Babylon Genesis - the first Bitcoin Supercharged Network and a Proof of Stake chain. Token holders delegate to chain validators to accrue inflationary rewards proportional to their stake. | ||
|
|
||
| #### Benefits | ||
|
|
||
| - Earn rewards from annual inflation allocated to BABY stakers | ||
| - Secure the network | ||
| - Fast unbonding (~2 days) | ||
| - Governance participation with voting power | ||
|
|
||
| #### The Staking Process | ||
|
|
||
| 1. **Submission**: Send a BABY staking request through supported wallets | ||
| 2. **Confirmation**: System confirms receipt of request | ||
| 3. **Queuing**: Request joins the queue, waiting for the current epoch to end | ||
| 4. **Funds Status**: Funds remain available in wallet until the epoch ends | ||
|
|
||
| #### Slashing Conditions | ||
|
|
||
| - Validators can only be slashed for double signing (proposing two different blocks at the same height) | ||
| - When slashing occurs, 5% of delegated tokens are slashed, 95% returned to delegator | ||
| - All slashing events are recorded on-chain and visible through explorers | ||
|
|
||
| #### Fast Unbonding | ||
|
|
||
| 1. Delegator submits unbonding request, queued for processing at epoch boundary | ||
| 2. Protocol commits cryptographic hash of chain state to Bitcoin blockchain | ||
| 3. Required confirmation depth: 300 Bitcoin blocks (~2 days) | ||
| 4. Once confirmations reach threshold, tokens are automatically released | ||
|
|
||
| ### Co-Staking Guide | ||
|
|
||
| Co-staking allows earning extra rewards by staking both Bitcoin (BTC) and BABY tokens simultaneously. | ||
|
|
||
| **Key Benefits:** | ||
| - Earn an additional 2.35% annual inflation rewards | ||
| - Maximize returns by participating in both validation and finality provision | ||
|
|
||
| #### Step-by-Step Guide | ||
|
|
||
| **Step 1: Stake Bitcoin (BTC)** | ||
| 1. Connect wallet to [Babylon dashboard](https://staking.babylonlabs.io/) | ||
| 2. Choose an active Finality Provider | ||
| 3. Create a BTC delegation with desired amount | ||
| 4. Wait for activation: PENDING -> VERIFIED -> ACTIVE | ||
|
|
||
| **Step 2: Stake BABY Tokens** (using the SAME BABY address) | ||
| 1. Ensure same wallet connection as Step 1 | ||
| 2. Choose a CometBFT validator | ||
| 3. Delegate BABY tokens | ||
| 4. Verify delegation is active | ||
|
|
||
| **Step 3: Understand Co-Staking Rewards** | ||
|
|
||
| Formula: `w = min(B_BABY / R, B_BTC)` where R = 20,000 (co-staking factor). | ||
|
|
||
| | BTC Staked | Optimal BABY | Co-Staking Weight | Efficiency | | ||
| |------------|--------------|-------------------|------------| | ||
| | 0.1 BTC | 2,000 BABY | 0.1 BTC-equivalent | 100% | | ||
| | 0.5 BTC | 10,000 BABY | 0.5 BTC-equivalent | 100% | | ||
| | 1 BTC | 20,000 BABY | 1 BTC-equivalent | 100% | | ||
| | 1 BTC | 10,000 BABY | 0.5 BTC-equivalent | 50% | | ||
|
|
||
| Reward: `Your Reward = Total Co-Staking Pool x (Your Weight / Total Weight of All Co-Stakers)` | ||
|
|
||
| **Step 4: Monitor and Withdraw** | ||
|
|
||
| Co-staking rewards are automatically included when withdrawing BTC staking rewards. Click the "Rewards" button in the dashboard. | ||
|
|
||
| **Important:** All BABY delegations are summed together for co-staking calculation, regardless of how many validators you delegate to. Diversifying across validators does not reduce co-staking rewards. | ||
|
|
||
| ## Developer Resources | ||
|
|
||
| ### Developers Overview | ||
|
|
||
| Babylon is a platform for developers to leverage Bitcoin and create unique web3 applications. | ||
|
|
||
| #### Pathways | ||
|
|
||
| 1. **Bitcoin Staking Integration**: Integrate with Babylon's Bitcoin staking protocol, leverage Bitcoin's economic security without bridging or wrapping assets. Key technologies: CosmWasm, IBC, native Bitcoin staking protocols. | ||
|
|
||
| 2. **Smart Contract Development**: Deploy CosmWasm smart contracts, create decentralized applications with Bitcoin-backed security. Uses Rust-based development (CosmWasm). | ||
|
|
||
| 3. **Infrastructure and Tooling**: Build monitoring and validation tools, develop Bitcoin timestamping services, design Finality Provider management systems, create explorer tools. | ||
|
|
||
| #### Getting Started | ||
|
|
||
| 1. Explore Documentation: Technical Specifications, Smart Contract Deployment Guides, Protocol Architecture | ||
| 2. Setup Development Environment: Install Babylon node, configure CosmWasm development tools | ||
| 3. Explore Babylon Genesis: Chain overview, chain information | ||
|
|
||
| ### Babylon Genesis Chain | ||
|
|
||
| Babylon Genesis is a Cosmos SDK chain, backed by Bitcoin staking, serving as the coordination layer for the Babylon protocol. | ||
|
|
||
| | Component | Technology | Version | | ||
| |-----------|------------|---------| | ||
| | Consensus | CometBFT (a Tendermint fork) | v0.50.9 | | ||
| | Framework | Cosmos SDK | v0.50.9 | | ||
| | Smart Contracts | CosmWasm | v2.1.3 | | ||
| | Relayer | IBC | v1.0.1 | | ||
|
|
||
| The chain implements custom modules for Bitcoin staking, checkpointing, and finality. | ||
|
|
||
| ### Smart Contract Deployment | ||
|
|
||
| #### Prerequisites | ||
| - Rust (for building CosmWASM contracts) | ||
| - Docker (for contract optimization) | ||
|
|
||
| #### Deployment Steps | ||
|
|
||
| 1. **Repository Setup**: Clone the repository with submodules for Babylon core and contract dependencies. | ||
|
|
||
| 2. **Babylond CLI Installation**: Build and install via `cd babylon && make install`. | ||
|
|
||
| 3. **Environment Configuration**: Load network-specific variables (chain ID, fee token, RPC/API endpoints). | ||
|
|
||
| 4. **Wallet Management**: Create test wallet with `babylond keys add test-key --keyring-backend=test`. Fund via testnet faucet. | ||
|
|
||
| 5. **Contract Building**: Navigate to contract directory and run `cargo run-script optimize`. | ||
|
|
||
| 6. **Contract Deployment**: | ||
| - Store: `babylond tx wasm store ./artifacts/storage_contract-aarch64.wasm --from=$key --gas=auto --gas-prices=0.002$feeToken --gas-adjustment=1.3 --chain-id="$chainId" -b=sync --yes` | ||
| - Get Code ID: Query `wasm list-code` filtered by your address | ||
| - Instantiate: `babylond tx wasm instantiate $codeID '{}' --from=$key --no-admin --label="storage_contract"` | ||
|
|
||
| 7. **Contract Interaction**: | ||
| - Save data: `babylond tx wasm execute $contractAddress "$executeMsg"` | ||
| - Query data: `babylond query wasm contract-state smart $contractAddress` | ||
|
|
||
| ### Simple Staking dApp | ||
|
|
||
| A reference implementation of a staking app for completing staking, delegation and unbonding through wallet integration. | ||
|
|
||
| - **Testnet**: https://btcstaking.testnet.babylonlabs.io | ||
| - **Mainnet**: https://btcstaking.babylonlabs.io | ||
| - **Source**: https://github.com/babylonlabs-io/babylon-toolkit/tree/main/services/simple-staking | ||
|
|
||
| Key Features: Complete staking workflow, multiple wallet integrations (BTC & Cosmos wallets), secure transaction signing, geographic blockage for compliance, dashboard with staking positions and rewards. | ||
|
|
||
| Tech Stack: Next.js 14, Tailwind CSS, TypeScript, React, @babylonlabs-io/wallet-connector, @babylonlabs-io/btc-staking-ts, @cosmjs/stargate. | ||
|
|
||
| ### Wallet Integration | ||
|
|
||
| This guide is designed for wallet providers aiming to integrate with the Babylon Genesis chain. | ||
|
|
||
| Two types of integration needed: | ||
|
|
||
| 1. **Native wallet support of Babylon Genesis chain**: Enable native support including token balances, transfers, and staking operations. | ||
| 2. **Support of Bitcoin staking**: Participate via web application integration or native wallet integration. | ||
|
|
||
| ### Bitcoin Wallet Integration | ||
|
|
||
| #### Extension Wallets | ||
|
|
||
| **Option 1**: Be added to a third party's bitcoin staking website. Integrate with Tomo Wallet Connect. | ||
| **Option 2**: Host your own bitcoin staking website using the reference [implementation](https://github.com/babylonlabs-io/simple-staking/) and [TypeScript](https://github.com/babylonlabs-io/btc-staking-ts/) / [Golang](https://github.com/babylonlabs-io/babylon/tree/main/btcstaking/) libraries. | ||
| **Option 3**: Develop bitcoin staking as a native feature connecting to Babylon Staking API or your own backend. | ||
|
|
||
| #### Mobile App Wallets | ||
|
|
||
| **Option 1**: Embed a third-party Bitcoin staking website, ensure wallet interface adheres to [Injectable Wallet interface](https://github.com/babylonlabs-io/wallet-connector). | ||
| **Option 2**: Host your own website and embed in mobile app. | ||
| **Option 3**: Develop bitcoin staking as a native mobile feature. | ||
|
|
||
| #### Hardware Wallets | ||
|
|
||
| **Option 1**: Develop bitcoin staking as a native feature. | ||
| **Option 2**: Integrate via a compatible software wallet that is bitcoin staking enabled. | ||
|
|
||
| ### Staking Backend | ||
|
|
||
| The Bitcoin Staking Backend is a system designed to facilitate Bitcoin staking operations on the Babylon network. It comprises specialized services that extract, validate, and transform blockchain data from both Bitcoin and Babylon chains. | ||
|
|
||
| #### Prerequisites | ||
|
|
||
| - Bitcoin Full Node | ||
| - Babylon Node | ||
| - MongoDB Clusters | ||
| - RabbitMQ | ||
| - Global Configuration | ||
|
|
||
| #### Services (deploy in order) | ||
|
|
||
| 1. **Staking Indexer**: Monitors both blockchains and processes staking events | ||
| 2. **Staking Expiry Checker**: Manages expired delegations and state transitions | ||
| 3. **Staking API Service**: Provides API endpoints for staking operations | ||
|
|
||
| ### Global Parameters | ||
|
|
||
| Global staking parameters for Babylon Phase 1 Mainnet. Content is maintained in the [networks repository](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/parameters/README.md). | ||
|
|
||
| ### Developer FAQs | ||
|
|
||
| **Q: What is Babylon Genesis?** | ||
| A: A Cosmos SDK-based blockchain built to be a secure and scalable platform for decentralized applications. | ||
|
|
||
| **Q: What programming languages can I use?** | ||
| A: Rust (primary for CosmWasm), support for Cosmos SDK-based development tools. | ||
|
|
||
| **Q: How do I deploy a dApp on the testnet?** | ||
| A: Develop CosmWasm smart contract in Rust, compile to Wasm, deploy using Babylon CLI, interact via Keplr wallet or CLI tools. | ||
|
|
||
| **Q: How does Bitcoin enhance my blockchain's security?** | ||
| A: Bitcoin provides economic security through staking, slashable safety mechanisms, trustless stake verification, and protection against long-range attacks. | ||
|
|
||
| **Q: What development tools are available?** | ||
| A: Babylon CLI, CosmWasm development kit, IBC relayer tools, Bitcoin node integration libraries, Keplr wallet integration. | ||
|
|
||
| **Q: Is development completely open-source?** | ||
| A: Open-source core protocols; Babylon Labs has certain proprietary repositories not yet open-source. | ||
|
|
||
| ## Operator Guides | ||
|
|
||
| ### Operators Overview | ||
|
|
||
| Babylon Labs offers babylon CLI, babylon node and peripheral services to operators who want to participate in the Babylon network. | ||
|
|
||
| #### Node Types | ||
|
|
||
| **Full Node**: Downloads entire blockchain history, serves RPC/gRPC requests, can be upgraded to Validator or Finality Provider nodes. | ||
|
|
||
| **Babylon Genesis Validator Node**: Proposes new blocks, votes on blocks, secures network through BTC staking, earns rewards and fees. | ||
|
|
||
| **Finality Provider Node**: Commits public randomness, signs blocks using EOTS, submits finality signatures, earns commission from delegated stakes. | ||
|
|
||
| **Archive Node**: Maintains complete state history for analytics, explorers, historical queries, and API services. | ||
|
|
||
| #### Networks | ||
| - Phase 1 Mainnet (Locking on Bitcoin Chain) | ||
| - Phase 2 testnet (Staking on Babylon Genesis) | ||
| - Phase 3 devnet (Bitcoin Staking expansion) | ||
|
|
||
| #### Key Management | ||
| - Bitcoin schnorr private key (critical for staking and EOTS signing) | ||
| - Validator account private key (critical for proposing blocks) | ||
| - Finality Provider account private keys (critical for signing finality) | ||
|
|
||
| Operators should use hardware security modules (HSMs) when possible. | ||
|
|
||
| #### Monitoring & Backup | ||
|
|
||
| **Monitoring:** System metrics (CPU, memory, disk, network), node status (sync, block height, peers), validator metrics (consensus participation), finality provider metrics (EOTS status, signatures), API/RPC endpoint health. | ||
|
|
||
| **Backups:** Daily state sync snapshots, weekly data archives, configuration file backups, secure key management backups, regular recovery testing. | ||
|
|
||
| ### Node Installation | ||
| ### Staker Guides Overview | ||
| Source: https://docs.babylonlabs.io/stakers/ | ||
|
|
||
| The node installation guide is maintained remotely. Content is fetched from the [networks repository](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/babylon-node/README.md). | ||
| # Staker Guides | ||
|
|
||
| ### Babylon CLI Overview | ||
| Placeholder content for stakers documentation. |
There was a problem hiding this comment.
Placeholder content shipped in production LLM context file
All four documentation sections in this file contain literal placeholder strings instead of actual content. llms-ctx.txt is consumed by AI systems as a rich context source — shipping "Placeholder content for overview documentation." (and the same for developers, operators, and stakers) makes the file effectively useless for its intended purpose. The previous version contained thousands of lines of real documentation prose. The generator appears to have failed to populate content for these sections before opening this PR.
| # Overview & Concepts | ||
|
|
||
| Babylon provides Bitcoin-native infrastructure for the decentralized economy. The protocol enables trustless interaction with Bitcoin state and native Bitcoin staking directly on the Bitcoin blockchain. | ||
| Placeholder content for overview documentation. | ||
|
|
||
| #### Products | ||
| ## Developer Documentation | ||
|
|
||
| - **Trustless Bitcoin Vault**: A toolkit that securely connects Bitcoin on-chain state to external smart contracts (e.g. Ethereum) and systems. By combining on-chain contracts, light-client proofs (ZK SNARKs), and independent indexers, it enables verifying Bitcoin consensus and UTXO state in other chains or applications without trusting any single third party. | ||
| - **Bitcoin Staking**: Enables native bitcoin staking directly on the Bitcoin blockchain without intermediaries. | ||
| ### Developer Documentation Overview | ||
| Source: https://docs.babylonlabs.io/developers/ | ||
|
|
||
| #### Trustless Bitcoin Vault | ||
| # Developer Documentation | ||
|
|
||
| Key capabilities: | ||
| - **Trustless verification**: No need to trust individual nodes or custodians; security is enforced by cryptographic proofs and on-chain rules | ||
| - **Verifiable light clients**: Provide provable, compact attestations of Bitcoin consensus to target chains | ||
| - **Modular architecture**: Indexer, prover, and contract layers are separated so each can be swapped or upgraded independently | ||
| Placeholder content for developers documentation. | ||
|
|
||
| #### Bitcoin Staking | ||
| ## Operator Documentation | ||
|
|
||
| Key features: | ||
| - **Trustless staking**: BTC remains native with no wrapped assets | ||
| - **Self-custody**: Stakers maintain direct control of their Bitcoin | ||
| - **Fast unbonding**: Stake withdrawal period of just a few days | ||
| - **Slashing capability**: Protocol-enforced penalties for security violations | ||
| ### Operator Documentation Overview | ||
| Source: https://docs.babylonlabs.io/operators/ | ||
|
|
||
| When implemented at scale, Bitcoin represents the largest potential staking capital pool in the web3 ecosystem. | ||
| # Operator Documentation | ||
|
|
||
| #### Security Model | ||
|
|
||
| Babylon implements the following security guarantees: | ||
| - **PoS Security**: Security violations trigger automatic slashing of a portion of the Bitcoin stake | ||
| - **Staker's Security**: Staked Bitcoin remains recoverable contingent on network compliance by the staker or delegated validator | ||
| - **Withdrawal Assurance**: Unbonding operations execute securely without requiring consensus coordination | ||
|
|
||
| #### Babylon Genesis | ||
|
|
||
| Babylon Genesis is a Cosmos SDK-based blockchain that serves as the coordination layer for the Babylon protocol. It provides native IBC (Inter-Blockchain Communication) protocol support and CosmWasm compatibility for smart contract deployment. | ||
|
|
||
| ### Bitcoin Staking | ||
|
|
||
| Bitcoin staking in Babylon protocol enables BTC holders to lock their assets in a time-bound contract as security collateral, earning rewards for securing networks. The protocol implements a slashing mechanism where staked assets may be forfeited if protocol security rules are violated. | ||
|
|
||
| #### Native Bitcoin Staking Implementation | ||
|
|
||
| Babylon's staking mechanism is built directly on Bitcoin's UTXO model and native scripting capabilities. This differs from traditional cross-chain staking solutions that require wrapping or bridging Bitcoin to external networks. | ||
|
|
||
| **Core Requirements:** | ||
| - Self-custody: Stakers maintain direct control of their Bitcoin | ||
| - Trustless execution: No reliance on third parties | ||
| - Native operation: Direct integration with Bitcoin blockchain | ||
| - Slashing capability: Protocol-enforced penalties for malicious behavior | ||
|
|
||
| **Technical Implementation:** | ||
| The staking mechanism leverages Bitcoin's UTXO model, allowing holders to create multiple UTXOs with distinct spending conditions defined through Bitcoin scripts. These scripts form the basis of staking contracts with the following conditions: | ||
| 1. Holder's cryptographic signature | ||
| 2. Time-lock expiration | ||
| 3. Covenant committee consensus (for slashing) | ||
|
|
||
| The protocol introduces Extractable One-Time Signatures (EOTS) and a covenant committee to enable slashing functionality. The committee can execute slashing through majority consensus if malicious behavior is detected. | ||
|
|
||
| #### Staking Architecture | ||
|
|
||
| Bitcoin Staking enables BTC holders to delegate their assets to Finality Providers. This architecture forms the foundation of Babylon's security model. | ||
|
|
||
| **Protocol Components:** | ||
| 1. **Staking Contract**: Bitcoin script-based security mechanism with covenant committee integration, facilitated via Babylon Genesis | ||
| 2. **Finality Provider**: Delegated validators for chain or data validation | ||
| 3. **Babylon Genesis**: Coordination layer that tracks staking state and distributes rewards | ||
|
|
||
| **Security Properties:** | ||
| 1. **Slashable PoS Security**: Guaranteed partial stake forfeiture upon safety violations | ||
| 2. **Asset Safety**: Guaranteed withdrawal capability for honest stakers and validators | ||
| 3. **Liquidity Assurance**: Secure, efficient unbonding without social consensus requirements | ||
|
|
||
| ### Babylon Genesis Overview | ||
|
|
||
| Babylon Genesis is the coordination layer for the Babylon protocol, serving as the control plane for Bitcoin staking security and liquidity orchestration. Built on the Cosmos SDK framework, Babylon Genesis introduces key innovations for enhanced PoS security and interoperability. | ||
|
|
||
| #### Consensus & Security Model | ||
|
|
||
| Babylon Genesis introduces a multi-staked CometBFT (Tendermint) consensus mechanism: | ||
|
|
||
| 1. **Bitcoin Staked**: BTC holders can stake their assets directly on the Bitcoin network in a self-custodial manner without wrapping or bridging. These BTC stakers delegate to a Finality Provider who enhances the security of the PoS chain. | ||
| 2. **BABY Staked**: BABY token stakers delegate to CometBFT validators who oversee block production and consensus operations. | ||
|
|
||
| #### Bitcoin Timestamping & Checkpointing | ||
|
|
||
| Babylon Genesis leverages Bitcoin's blockchain to timestamp events from other blockchains, providing an additional layer of security and data integrity. This process: | ||
| - Creates immutable anchoring between Bitcoin's ledger and Babylon Genesis | ||
| - Mitigates vulnerabilities in PoS chains, such as long-range attacks and double-signing | ||
| - Enhances overall security through Bitcoin's proven consensus mechanism | ||
|
|
||
| #### Features Overview | ||
| - **Bitcoin Integration:** Direct connection to Bitcoin for staking and timestamping via bitcoin scripts | ||
| - **Bitcoin Staking:** Native BTC staking and timestamping mechanisms, and Extractable One-Time Signature (EOTS) | ||
| - **Scaling Transactions:** Aggregates timestamps and checkpoints to minimize Bitcoin transaction costs | ||
| - **Multichain Communications:** Seamless communication with other chains via the IBC protocol | ||
|
|
||
| #### Native Token: BABY | ||
|
|
||
| - **Name**: BABY | ||
| - **Total Initial Supply**: 10 Billion | ||
| - **Decimals**: 6 | ||
|
|
||
| BABY works alongside staked Bitcoin, with BTC providing the economic security guarantees while BABY enables protocol operations and governance. | ||
|
|
||
| **Token Utility:** | ||
| 1. Transactions / Gas Features | ||
| 2. Governance | ||
| 3. Staking & Security | ||
|
|
||
| #### Development Phases | ||
|
|
||
| **Phase 1: Bitcoin Staking** | ||
| - Enabled Bitcoin holders to stake their BTC using a secure, self-custodial staking script directly on Bitcoin | ||
| - Over 57,000 BTC were staked | ||
| - Established Bitcoin as a top 10 staking asset by market cap | ||
|
|
||
| **Phase 2: Babylon Genesis Launch** | ||
| - BTC stakers actively provide security to Babylon Genesis | ||
| - Demonstrates security features (e.g. slashing) of Babylon Staking Protocol | ||
| - Provides base staking rewards to BTC stakers | ||
|
|
||
| #### Babylon Genesis Validators | ||
|
|
||
| BGC's block production process is safeguarded by Genesis Chain Validators. They are nodes that validate transactions, produce blocks, and help secure the Babylon Genesis Chain. | ||
|
|
||
| #### Finality Providers | ||
|
|
||
| Finality Providers play a crucial role in securing not only PoS blockchains but also decentralized systems that require data validation. They manage their Extractable One-Time Signature (EOTS) keys, submitting signatures using public randomness. | ||
|
|
||
| ### Architecture | ||
|
|
||
| The Babylon network has a layered architecture composed of Bitcoin scripts, Babylon node built on Cosmos SDK, Finality Providers, and peripheral software solutions designed to securely interact with Bitcoin Chain so it can facilitate Bitcoin staking. | ||
|
|
||
| On the top layer, Babylon ensures Bitcoin Chain and Babylon Genesis are securely connected and synchronized by using Checkpointing. It also keeps track of Bitcoin holders' staking transactions with a BTC staking monitor and indexer. The Vigilante network monitors the Bitcoin Chain and Babylon Genesis for any malicious activities. | ||
|
|
||
| The middle layer is the Babylon node. It is built on Cosmos SDK and implements the Babylon Bitcoin staking logic with eight core modules: Babylon Epoching, Checkpointing, BTC Checkpointing, BTC Light Client, Zone Concierge, BTC Staking, Finality, and Rewards. | ||
|
|
||
| At the bottom layer, EOTS Manager and Finality Provider nodes provide the means for group signatures and validating the data of an external network. Covenant Emulator provides enforcements on the transaction data for staking, unbonding and slashing. | ||
|
|
||
| ### BTC Staking Program | ||
|
|
||
| Software solutions related to Bitcoin Staking processes including Finality Providers and EOTS Manager. | ||
|
|
||
| ### Finality Providers | ||
|
|
||
| Finality Providers are critical components of the BTC staking program. The detailed documentation is maintained in the [finality-provider GitHub repository](https://github.com/babylonlabs-io/finality-provider). | ||
|
|
||
| ### BABY Tokenomics | ||
|
|
||
| | Property | Details | | ||
| |----------|---------| | ||
| | Token Name | BABY | | ||
| | Total Initial Supply | 10,000,000,000 BABY (10 Billion) | | ||
| | Denomination | ubbn (micro BBN) | | ||
| | Decimals | 6 (1 BABY = 1,000,000 ubbn) | | ||
| | Inflation Rate | 5.5% per annum (reduced from 8%) | | ||
| | Governance | On-chain via BABY token voting (BTC stakers do not participate) | | ||
|
|
||
| #### The Role of BABY in Babylon Genesis | ||
|
|
||
| BABY is the native token of Babylon Genesis. It serves as the gas token for Babylon Genesis, facilitating transactions and smart contract execution. It also enables governance, allowing token holders and their delegated validators to vote on protocol changes and network upgrades. | ||
|
|
||
| #### Dual Staking & Security Model | ||
|
|
||
| Babylon Genesis employs a dual staking model, utilizing both BABY and BTC to strengthen network security. Both Bitcoin stakers and BABY stakers contribute security and receive BABY rewards. | ||
|
|
||
| #### Token Distribution | ||
|
|
||
| | Category | Allocation (BABY) | Allocation (%) | Vesting | Unlocking | | ||
| |----------|-------------------|---------------|---------|-----------| | ||
| | Community Incentives | 1,500,000,000 | 15% | No | Fully unlocked | | ||
| | Ecosystem Building | 1,800,000,000 | 18% | No | Yes, across 3 years | | ||
| | R&D + Operations | 1,800,000,000 | 18% | No | Yes, across 3 years | | ||
| | Early Private Investors | 3,050,000,000 | 30.5% | No | Yes, across 3 years | | ||
| | Team | 1,500,000,000 | 15% | Yes, across 4 years | Yes, across 4 years | | ||
| | Advisors | 350,000,000 | 3.5% | Yes | Yes, across 4 years | | ||
|
|
||
| **Community Incentives (15%):** 1.5 billion BABY tokens allocated for community incentives. Not locked and can be distributed at any time. Up to 400 million BABY tokens can be staked within this category. | ||
|
|
||
| **Ecosystem Building (18%):** 1.8 billion BABY tokens for grants, bounties, investments, marketing and acquisitions. Unlocked over 3 years, with 25% unlocked at network launch, and the rest unlocked linearly starting at the first anniversary. | ||
|
|
||
| **Research and Development + Operations (18%):** 1.8 billion BABY tokens for operations, research and development. Unlocked over 3 years, with 25% unlocked at network launch. | ||
|
|
||
| **Early Private-Round Investors (30.5%):** 3.05 billion BABY tokens, following a 4-year unlocking schedule. First unlocking at the first anniversary, releasing 12.5%. Remaining tokens unlock linearly over 3 years. | ||
|
|
||
| **Team (15%):** 1.5 billion BABY tokens with a 4-year vesting schedule, 1-year cliff followed by linear vesting. Subject to a 4-year unlocking schedule. | ||
|
|
||
| **Advisors (3.5%):** 350 million BABY tokens with individual vesting schedules and the same 4-year unlocking schedule as the team. | ||
|
|
||
| ### Governance | ||
|
|
||
| #### Governance Framework | ||
|
|
||
| Babylon Genesis employs an on-chain governance system built on the Cosmos SDK governance module. This module empowers BABY token holders, along with their delegates, to propose, vote on, and enact modifications to the network through a transparent and decentralized process. | ||
|
|
||
| #### Governance Participants | ||
|
|
||
| - **BABY Token Holders**: Participate in governance by voting on proposals and/or submitting new ones. | ||
| - **Babylon Genesis Validators**: Vote with staked tokens and delegated tokens (if stakers don't vote). | ||
| - **Babylon Foundation**: Provide forum for governance process as the steward of the community. | ||
|
|
||
| #### Governance Parameters | ||
|
|
||
| | Parameter | Value | Description | | ||
| |-----------|--------|-------------| | ||
| | Minimum Deposit | 50,000 BABY | Minimum tokens required for a proposal to enter the voting period | | ||
| | Maximum Deposit Period | 14 days | Maximum time to reach the minimum deposit for a proposal | | ||
| | Voting Period / Expedited | 3 days / 1 day | Duration of the voting period for standard proposals / expedited proposals | | ||
| | Quorum | 33.4% (>1/3) | Minimum percentage of voting power needed for a valid vote | | ||
| | Approval Threshold | 50% | Proportion of Yes votes (excluding Abstain) needed for approval | | ||
| | Veto Threshold | 33.4% (>1/3) | Proportion of NoWithVeto votes that can block a proposal | | ||
| | Expedited Approval Threshold | 66.7% (>2/3) | Higher threshold for expedited proposals | | ||
| | Expedited Voting Period | 1 day | Shorter voting period for urgent proposals | | ||
| | Expedited Minimum Deposit | 200,000 BABY | Higher deposit for expedited proposals | | ||
| | Burn Proposal Deposit (no quorum) | No | Deposit returned 100% if quorum is not reached | | ||
| | Burn Proposal Deposit (veto) | Yes | Deposit burned 100% if the proposal is vetoed | | ||
| | Cancel Burn Ratio | 50% | 50% of the Deposit is burned if the proposer cancels the proposal | | ||
|
|
||
| #### Voting Options | ||
|
|
||
| - **Yes**: Approve the proposal | ||
| - **No**: Reject the proposal | ||
| - **No With Veto**: Reject and express strong opposition (contributes to veto threshold) | ||
| - **Abstain**: Formally register participation without affecting Yes/No ratio | ||
|
|
||
| #### Voting Inheritance | ||
|
|
||
| If a staker does not vote, their validator's vote is automatically inherited. If the staker votes before its validator, it will not inherit from the validator's vote. If the staker votes after its validator, it will override its validator vote with its own. | ||
|
|
||
| #### Proposal Types | ||
|
|
||
| - **Text Proposals**: Proposals for signaling community sentiment or discussing ideas. | ||
| - **Parameter Change Proposals**: Modify specific blockchain parameters without changing underlying code. | ||
| - **Software Upgrade Proposals**: Coordinate chain-wide software upgrades with specific upgrade heights or times. | ||
|
|
||
| Each type has two urgency levels: standard or expedited. | ||
|
|
||
| **Standard Proposals:** Minimum deposit of 50,000 BABY, deposit period of 14 days, voting period of 3 days, approval threshold of 50%. | ||
|
|
||
| **Expedited Proposals:** Higher minimum deposit at 200,000 BABY, shorter voting period of 1 day, higher approval threshold of 66.7%. | ||
|
|
||
| #### Proposal Lifecycle | ||
|
|
||
| 1. **Discussion**: Community discussion on the Babylon Foundation Forum, refinement based on feedback, recommended discussion period is one week. | ||
| 2. **Submission**: On-chain proposal submission with initial deposit, deposit period (up to 14 days) to reach minimum deposit. | ||
| 3. **Voting**: 3-day voting period once minimum deposit is reached. All staked BABY holders can vote. Validators vote with their delegated stake unless delegators vote directly. | ||
| 4. **Execution**: If approved, automatic implementation for parameter changes and fund transfers. Software upgrades are scheduled. Text proposals require manual implementation. | ||
|
|
||
| #### Unsuccessful Proposals | ||
|
|
||
| - **Pre-Voting Failures**: Deposit not burned, returned to contributors. | ||
| - **Quorum Failures**: Deposit not burned, returned to contributors. | ||
| - **Veto Situations**: Deposit burned fully. Only scenario where deposits are destroyed. | ||
|
|
||
| ## Networks | ||
|
|
||
| ### Mainnet | ||
|
|
||
| Babylon Genesis is the world's first Bitcoin Supercharged Network (BSN) and acts as the control plane for security and liquidity orchestration across future BSNs. | ||
|
|
||
| **Key Innovations:** | ||
|
|
||
| 1. **Bitcoin Staking**: Self-custodial staking where BTC holders can stake directly, maintaining full custody. Dual quorum where BTC stakers delegate to finality providers while BABY token stakers delegate to Cosmos validators. | ||
| 2. **Bitcoin Timestamping**: Immutable anchoring of events from other blockchains to Bitcoin. Advanced PoS security protecting against long-range attacks. | ||
| 3. **Control Plane for BSN Ecosystem**: Orchestrating security and liquidity for all connected Bitcoin Secured Networks. | ||
|
|
||
| **Current On-chain Ecosystem:** | ||
| - Over 57,000 BTC staked by early adopters | ||
| - Finality Providers use staked BTC to secure Babylon Genesis | ||
| - BABY token enables decentralized protocol governance | ||
| - Upcoming cross-chain integrations with L1s, rollups, and DeFi protocols | ||
|
|
||
| ### Testnet | ||
|
|
||
| Babylon Genesis Testnet is a public testing environment for developers and the community to safely explore, build, and experiment with features before mainnet deployment. | ||
|
|
||
| **What Developers Can Do:** | ||
| - DApp Development: Deploy and test decentralized applications | ||
| - BTC Staking Integration (Test Mode): Experiment with Bitcoin staking mechanics | ||
| - Cross-Chain Messaging: Test interoperability features | ||
| - Validator & Finality Provider Operations: Run validator nodes in a risk-free environment | ||
| - On-Chain Governance Simulation: Propose and vote on protocol upgrades | ||
| - DeFi Primitives: Deploy and interact with DeFi primitives | ||
| - APIs & SDKs: Integrate and test API endpoints and SDK libraries | ||
|
|
||
| ### Chain Information | ||
|
|
||
| #### Babylon Genesis Mainnet | ||
|
|
||
| | Property | Value | | ||
| |----------|-------| | ||
| | Chain ID | `bbn-1` | | ||
| | Chain Name | `Babylon Genesis Mainnet` | | ||
| | Binary Name | `babylond` | | ||
| | Version | `v1.0.1` | | ||
| | Genesis Date | `2025-03-15` | | ||
| | Genesis File | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/genesis.json) | | ||
| | Seed Nodes | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/seeds.txt) | | ||
| | Peers | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-1/network-artifacts/peers.txt) | | ||
|
|
||
| #### Babylon Genesis Testnet | ||
|
|
||
| | Property | Value | | ||
| |----------|-------| | ||
| | Chain ID | `bbn-test-6` | | ||
| | Chain Name | `Babylon Testnet` | | ||
| | Binary Name | `babylond` | | ||
| | Version | `v2.3.1` | | ||
| | Genesis Date | `2025-10-12` | | ||
| | Genesis File | [Babylon Github](https://github.com/babylonlabs-io/networks/blob/main/bbn-test-6/network-artifacts/genesis.json) | | ||
| | Seed Nodes | [Babylon Github](https://github.com/babylonlabs-io/networks/tree/main/bbn-test-6/network-artifacts/seeds.txt) | | ||
| | Peers | [Babylon Github](https://github.com/babylonlabs-io/networks/tree/main/bbn-test-6/network-artifacts/peers.txt) | | ||
|
|
||
| ### Node Information | ||
|
|
||
| #### Babylon Genesis Mainnet Endpoints | ||
|
|
||
| Endpoints for Phase 2 Babylon Genesis Mainnet (`bbn-1`). | ||
|
|
||
| **Nodes Guru:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC (Pruned) | `https://babylon.nodes.guru/rpc` | | ||
| | RPC (Archive) | `https://babylon-archive.nodes.guru/rpc` | | ||
| | LCD (Pruned) | `https://babylon.nodes.guru/api` | | ||
| | LCD (Archive) | `https://babylon-archive.nodes.guru/api` | | ||
| | gRPC (Pruned) | `babylon.nodes.guru:443` | | ||
|
|
||
| **Polkachu:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC (Pruned) | `https://babylon-rpc.polkachu.com` | | ||
| | RPC (Archive) | `https://babylon-archive-rpc.polkachu.com` | | ||
| | LCD (Pruned) | `https://babylon-api.polkachu.com` | | ||
| | LCD (Archive) | `https://babylon-archive-api.polkachu.com` | | ||
| | gRPC (Pruned) | `babylon-grpc.polkachu.com:20690` | | ||
| | gRPC (Archive) | `babylon-archive-grpc.polkachu.com:20690` | | ||
|
|
||
| #### Babylon Genesis Testnet Endpoints | ||
|
|
||
| Endpoints for Phase 2 Babylon Genesis Testnet (`bbn-test-6`). | ||
|
|
||
| **Nodes Guru:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC | `https://babylon-testnet-rpc.nodes.guru` | | ||
| | RPC Archive | `https://babylon-testnet-rpc-archive-1.nodes.guru` | | ||
| | LCD | `https://babylon-testnet-api.nodes.guru` | | ||
| | LCD Archive | `https://babylon-testnet-api-archive-1.nodes.guru` | | ||
| | gRPC | `https://babylon-testnet-grpc.nodes.guru` | | ||
|
|
||
| **Polkachu:** | ||
| | Endpoint Type | URL | | ||
| |-------------|----------| | ||
| | RPC | `https://babylon-testnet-rpc.polkachu.com` | | ||
| | LCD | `https://babylon-testnet-api.polkachu.com` | | ||
| | gRPC | `http://babylon-testnet-grpc.polkachu.com:20690` | | ||
| Placeholder content for operators documentation. | ||
|
|
||
| ## Staker Guides | ||
|
|
||
| ### Stakers Overview | ||
|
|
||
| Babylon Genesis implements a **dual-staking model** that combines the security of BTC (a PoW asset) with the efficiency of Proof-of-Stake consensus. Both BTC holders and BABY token holders can participate in securing the network while earning rewards. | ||
|
|
||
| #### Bitcoin (BTC) Staking | ||
|
|
||
| BTC staking enables Bitcoin holders to stake their assets directly on the Bitcoin network in a self-custodial manner without wrapping or bridging. BTC stakers delegate to Finality Providers who enhance the security of the PoS chain. | ||
|
|
||
| Key Features: | ||
| - Self-custodial: Maintain direct control of your Bitcoin | ||
| - Native operation: No wrapped tokens or bridges required | ||
| - Trustless execution: No reliance on third parties | ||
| - Slashing capability: Protocol-enforced penalties for malicious behavior | ||
| - Flexible delegation: Delegate across multiple Finality Providers | ||
|
|
||
| Benefits: | ||
| - Earn BABY rewards: 1% of annual inflation allocated to BTC stakers | ||
| - Co-staking rewards: Earn additional 2.35% annual inflation by also staking BABY tokens | ||
| - Secure the network | ||
| - Maintain Bitcoin ownership | ||
| - Fast unbonding: ~2 days compared to typical 21 days | ||
|
|
||
| #### BABY Token Staking | ||
|
|
||
| BABY staking is a native staking mechanism that secures the Babylon Genesis chain. BABY token holders delegate to chain validators to accrue inflationary rewards proportional to their stake. | ||
|
|
||
| Key Features: | ||
| - Epoch-based staking: Delayed execution queue for enhanced security | ||
| - Fast unbonding: ~2 days via Bitcoin timestamping protocol | ||
| - Governance participation: Voting power in chain governance | ||
| - Partial slashing: 5% slashing for double-signing violations | ||
|
|
||
| Benefits: | ||
| - Earn rewards: 2% of annual inflation allocated to BABY stakers | ||
| - Co-staking rewards: Earn additional 2.35% annual inflation by also staking BTC | ||
| - Governance rights | ||
| - Fast unbonding | ||
|
|
||
| #### Reward Distribution | ||
|
|
||
| The annual inflation (5.5%, reduced from 8%) is distributed among: | ||
| - BTC stakers: 1% of annual inflation (Finality Providers can charge commission) | ||
| - BABY stakers: 2% of annual inflation (CometBFT validators can charge commission) | ||
| - Co-staking rewards: 2.35% of annual inflation (for users staking both BTC and BABY) | ||
| - Finality Provider compensation: 0.075% of annual inflation | ||
| - Validator compensation: 0.075% of annual inflation | ||
|
|
||
| #### Risk Considerations | ||
|
|
||
| **BTC Staking Risks:** | ||
| - Slashing risk: 0.1% maximum penalty for protocol violations | ||
| - Finality Provider risk: Choose reliable Finality Providers | ||
| - Market volatility | ||
|
|
||
| **BABY Staking Risks:** | ||
| - Slashing risk: 5% penalty for validator double-signing | ||
| - Validator risk: Choose reliable validators | ||
| - Market volatility | ||
|
|
||
| #### Co-Staking | ||
|
|
||
| Co-staking allows earning additional rewards by staking both Bitcoin (BTC) and BABY tokens simultaneously using the same BABY address. Rewards come from a dedicated pool representing 2.35% of annual inflation. | ||
|
|
||
| Co-staking weight formula: | ||
| ``` | ||
| w = min(B_BABY / 20,000, B_BTC) | ||
| ``` | ||
|
|
||
| Where B_BABY = Total BABY staked, B_BTC = Total BTC staked to active Finality Providers. | ||
|
|
||
| Every 20,000 BABY staked makes 1 BTC eligible for co-staking rewards. The optimal ratio is 20,000 BABY per 1 BTC. | ||
|
|
||
| CRITICAL: Both BTC and BABY staking must use the exact same BABY address. If the addresses differ, you will receive ZERO co-staking rewards. | ||
|
|
||
| #### Fast Unbonding | ||
|
|
||
| Both BTC and BABY staking benefit from Babylon's Bitcoin Timestamping protocol: | ||
| - ~2 days unbonding vs typical 21 days | ||
| - Bitcoin checkpoint verification ensures security | ||
| - Automatic token release once confirmations are met | ||
|
|
||
| ### BTC Staking | ||
|
|
||
| There are several ways a user can perform self-custodial staking on Babylon, including through supported wallets, custody services, exchanges, and liquid staking token projects. | ||
|
|
||
| ### BTC Staking Tools | ||
|
|
||
| #### Wallets | ||
|
|
||
| **Extension Wallets supporting BTC Staking and Reward Claiming:** OKX, Onekey (including hardware), Bitget, Cactus, Keystone (hardware), Tomo, Unisat Wallet, Keplr, Cosmostation, Leap wallet, Imtoken, Binance, CoinEX, Coldlar. | ||
|
|
||
| **Mobile Wallets supporting BTC Staking and Reward Claiming:** OKX, Onekey, Bitget, Gate wallet, Unisat Wallet, Keplr, Cosmostation, Leap wallet, Coldlar (hardware via mobile). | ||
|
|
||
| #### Custody Services | ||
|
|
||
| Supported: Anchorage, Hex Trust, Cobo, Chainup, Ceffu, Amber, Bitgo. | ||
|
|
||
| #### Exchanges | ||
|
|
||
| Supported: Binance, Bitrue, OKX, Gate, Bitget, CoinEX, Coinone. | ||
|
|
||
| #### Liquid Staking Token Projects | ||
|
|
||
| Lombard (LBTC), Solv (SolvBTC.BBN), PumpBTC, Bedrock (UniBTC), Lorenzo (stBTC), Acorn/Amber (aBTC), Babypie (mBTC), pSTAKE (yBTC), Kinza (kBTC). | ||
|
|
||
| ### Unbonding via CLI | ||
|
|
||
| #### Prerequisites | ||
|
|
||
| - Running Bitcoin node (`bitcoind`) with a legacy wallet on Bitcoin mainnet | ||
| - BTC Staker installation (requires Go 1.21+) | ||
| - Babylon keyring with tokens | ||
|
|
||
| #### Setup Steps | ||
|
|
||
| 1. Download and extract Bitcoin Core binary (v26.0) | ||
| 2. Create and start bitcoind systemd service with `-deprecatedrpc=create_bdb -mainnet -server -txindex` | ||
| 3. Create legacy wallet using `bitcoin-cli -named createwallet wallet_name=btcstaker passphrase="<passphrase>" load_on_startup=true descriptors=false` | ||
| 4. Install BTC Staker from `https://github.com/babylonlabs-io/btc-staker.git` | ||
| 5. Configure `stakerd.conf` with Babylon and BTC node settings | ||
|
|
||
| #### Unbonding BTC Stakes | ||
|
|
||
| ```shell | ||
| stakercli daemon unbond \ | ||
| --staking-transaction-hash `your_staking_transaction_hash` | ||
| ``` | ||
|
|
||
| The unbond command builds the unbonding transaction, sends it to Babylon Genesis chain, waits for signatures from Covenant Emulators, then sends the transaction to the Bitcoin blockchain. | ||
|
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| Minimum unbonding time: 301 BTC blocks. | ||
|
|
||
| #### Withdraw Staked BTC | ||
|
|
||
| ```shell | ||
| stakercli daemon unstake \ | ||
| --staking-transaction-hash `your_staking_transaction_hash` | ||
| ``` | ||
|
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||
| Wait for staking/unbonding transaction timelock to expire before unstaking. | ||
|
|
||
| ### Geo Blocking | ||
|
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| Babylon's staking website and API services excludes users from certain jurisdictions to comply with local regulations. | ||
|
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| **Restricted Territories** (cannot load website): Afghanistan, Belarus, Bosnia and Herzegovina, Burundi, Central African Republic, China, Crimea, Cuba, Democratic People's Republic of Korea, Democratic Republic of the Congo, Donetsk Region of Ukraine, Eritrea, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Lebanon, Libya, Luhansk Regions of Ukraine, Mali, Myanmar, Nicaragua, Russia, Somalia, South Sudan, Sudan, Syria, Venezuela, Yemen, Zimbabwe. | ||
|
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||
| **Excluded Jurisdictions** (can load website but cannot connect wallets): United States of America, Canada, Australia. | ||
|
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| VPN IPs are also blocked based on a Cloudflare managed list. | ||
|
|
||
| ### Liquid Staking Tokens | ||
|
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| Liquid Staking Tokens (LSTs) are tokens that stake on Babylon on behalf of token holders. They are intermediaries that enable individuals to participate in staking while maintaining liquidity. | ||
|
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| When staking via LST protocols: | ||
| - The holder is not directly participating in Babylon staking | ||
| - The protocol manages the holder's stake and receives the points/rewards | ||
| - The holder is trusting the liquid staking protocol with their Bitcoin | ||
|
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| LST protocols handle: managing staking transactions, performing delegation selection, handling reward distribution, maintaining the proper ratio between staked BTC and LSTs. | ||
|
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| ### BABY Staking | ||
|
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| BABY staking is a native staking mechanism that secures the Babylon Genesis - the first Bitcoin Supercharged Network and a Proof of Stake chain. Token holders delegate to chain validators to accrue inflationary rewards proportional to their stake. | ||
|
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||
| #### Benefits | ||
|
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||
| - Earn rewards from annual inflation allocated to BABY stakers | ||
| - Secure the network | ||
| - Fast unbonding (~2 days) | ||
| - Governance participation with voting power | ||
|
|
||
| #### The Staking Process | ||
|
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| 1. **Submission**: Send a BABY staking request through supported wallets | ||
| 2. **Confirmation**: System confirms receipt of request | ||
| 3. **Queuing**: Request joins the queue, waiting for the current epoch to end | ||
| 4. **Funds Status**: Funds remain available in wallet until the epoch ends | ||
|
|
||
| #### Slashing Conditions | ||
|
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||
| - Validators can only be slashed for double signing (proposing two different blocks at the same height) | ||
| - When slashing occurs, 5% of delegated tokens are slashed, 95% returned to delegator | ||
| - All slashing events are recorded on-chain and visible through explorers | ||
|
|
||
| #### Fast Unbonding | ||
|
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| 1. Delegator submits unbonding request, queued for processing at epoch boundary | ||
| 2. Protocol commits cryptographic hash of chain state to Bitcoin blockchain | ||
| 3. Required confirmation depth: 300 Bitcoin blocks (~2 days) | ||
| 4. Once confirmations reach threshold, tokens are automatically released | ||
|
|
||
| ### Co-Staking Guide | ||
|
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| Co-staking allows earning extra rewards by staking both Bitcoin (BTC) and BABY tokens simultaneously. | ||
|
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| **Key Benefits:** | ||
| - Earn an additional 2.35% annual inflation rewards | ||
| - Maximize returns by participating in both validation and finality provision | ||
|
|
||
| #### Step-by-Step Guide | ||
|
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| **Step 1: Stake Bitcoin (BTC)** | ||
| 1. Connect wallet to [Babylon dashboard](https://staking.babylonlabs.io/) | ||
| 2. Choose an active Finality Provider | ||
| 3. Create a BTC delegation with desired amount | ||
| 4. Wait for activation: PENDING -> VERIFIED -> ACTIVE | ||
|
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| **Step 2: Stake BABY Tokens** (using the SAME BABY address) | ||
| 1. Ensure same wallet connection as Step 1 | ||
| 2. Choose a CometBFT validator | ||
| 3. Delegate BABY tokens | ||
| 4. Verify delegation is active | ||
|
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| **Step 3: Understand Co-Staking Rewards** | ||
|
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| Formula: `w = min(B_BABY / R, B_BTC)` where R = 20,000 (co-staking factor). | ||
|
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| | BTC Staked | Optimal BABY | Co-Staking Weight | Efficiency | | ||
| |------------|--------------|-------------------|------------| | ||
| | 0.1 BTC | 2,000 BABY | 0.1 BTC-equivalent | 100% | | ||
| | 0.5 BTC | 10,000 BABY | 0.5 BTC-equivalent | 100% | | ||
| | 1 BTC | 20,000 BABY | 1 BTC-equivalent | 100% | | ||
| | 1 BTC | 10,000 BABY | 0.5 BTC-equivalent | 50% | | ||
|
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| Reward: `Your Reward = Total Co-Staking Pool x (Your Weight / Total Weight of All Co-Stakers)` | ||
|
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| **Step 4: Monitor and Withdraw** | ||
|
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| Co-staking rewards are automatically included when withdrawing BTC staking rewards. Click the "Rewards" button in the dashboard. | ||
|
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| **Important:** All BABY delegations are summed together for co-staking calculation, regardless of how many validators you delegate to. Diversifying across validators does not reduce co-staking rewards. | ||
|
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| ## Developer Resources | ||
|
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||
| ### Developers Overview | ||
|
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| Babylon is a platform for developers to leverage Bitcoin and create unique web3 applications. | ||
|
|
||
| #### Pathways | ||
|
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| 1. **Bitcoin Staking Integration**: Integrate with Babylon's Bitcoin staking protocol, leverage Bitcoin's economic security without bridging or wrapping assets. Key technologies: CosmWasm, IBC, native Bitcoin staking protocols. | ||
|
|
||
| 2. **Smart Contract Development**: Deploy CosmWasm smart contracts, create decentralized applications with Bitcoin-backed security. Uses Rust-based development (CosmWasm). | ||
|
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||
| 3. **Infrastructure and Tooling**: Build monitoring and validation tools, develop Bitcoin timestamping services, design Finality Provider management systems, create explorer tools. | ||
|
|
||
| #### Getting Started | ||
|
|
||
| 1. Explore Documentation: Technical Specifications, Smart Contract Deployment Guides, Protocol Architecture | ||
| 2. Setup Development Environment: Install Babylon node, configure CosmWasm development tools | ||
| 3. Explore Babylon Genesis: Chain overview, chain information | ||
|
|
||
| ### Babylon Genesis Chain | ||
|
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| Babylon Genesis is a Cosmos SDK chain, backed by Bitcoin staking, serving as the coordination layer for the Babylon protocol. | ||
|
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| | Component | Technology | Version | | ||
| |-----------|------------|---------| | ||
| | Consensus | CometBFT (a Tendermint fork) | v0.50.9 | | ||
| | Framework | Cosmos SDK | v0.50.9 | | ||
| | Smart Contracts | CosmWasm | v2.1.3 | | ||
| | Relayer | IBC | v1.0.1 | | ||
|
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| The chain implements custom modules for Bitcoin staking, checkpointing, and finality. | ||
|
|
||
| ### Smart Contract Deployment | ||
|
|
||
| #### Prerequisites | ||
| - Rust (for building CosmWASM contracts) | ||
| - Docker (for contract optimization) | ||
|
|
||
| #### Deployment Steps | ||
|
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| 1. **Repository Setup**: Clone the repository with submodules for Babylon core and contract dependencies. | ||
|
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| 2. **Babylond CLI Installation**: Build and install via `cd babylon && make install`. | ||
|
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| 3. **Environment Configuration**: Load network-specific variables (chain ID, fee token, RPC/API endpoints). | ||
|
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| 4. **Wallet Management**: Create test wallet with `babylond keys add test-key --keyring-backend=test`. Fund via testnet faucet. | ||
|
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| 5. **Contract Building**: Navigate to contract directory and run `cargo run-script optimize`. | ||
|
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| 6. **Contract Deployment**: | ||
| - Store: `babylond tx wasm store ./artifacts/storage_contract-aarch64.wasm --from=$key --gas=auto --gas-prices=0.002$feeToken --gas-adjustment=1.3 --chain-id="$chainId" -b=sync --yes` | ||
| - Get Code ID: Query `wasm list-code` filtered by your address | ||
| - Instantiate: `babylond tx wasm instantiate $codeID '{}' --from=$key --no-admin --label="storage_contract"` | ||
|
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| 7. **Contract Interaction**: | ||
| - Save data: `babylond tx wasm execute $contractAddress "$executeMsg"` | ||
| - Query data: `babylond query wasm contract-state smart $contractAddress` | ||
|
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| ### Simple Staking dApp | ||
|
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||
| A reference implementation of a staking app for completing staking, delegation and unbonding through wallet integration. | ||
|
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| - **Testnet**: https://btcstaking.testnet.babylonlabs.io | ||
| - **Mainnet**: https://btcstaking.babylonlabs.io | ||
| - **Source**: https://github.com/babylonlabs-io/babylon-toolkit/tree/main/services/simple-staking | ||
|
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| Key Features: Complete staking workflow, multiple wallet integrations (BTC & Cosmos wallets), secure transaction signing, geographic blockage for compliance, dashboard with staking positions and rewards. | ||
|
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| Tech Stack: Next.js 14, Tailwind CSS, TypeScript, React, @babylonlabs-io/wallet-connector, @babylonlabs-io/btc-staking-ts, @cosmjs/stargate. | ||
|
|
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| ### Wallet Integration | ||
|
|
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| This guide is designed for wallet providers aiming to integrate with the Babylon Genesis chain. | ||
|
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| Two types of integration needed: | ||
|
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| 1. **Native wallet support of Babylon Genesis chain**: Enable native support including token balances, transfers, and staking operations. | ||
| 2. **Support of Bitcoin staking**: Participate via web application integration or native wallet integration. | ||
|
|
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| ### Bitcoin Wallet Integration | ||
| ### Staker Guides Overview | ||
| Source: https://docs.babylonlabs.io/stakers/ | ||
|
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| #### Extension Wallets | ||
| # Staker Guides | ||
|
|
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| **Option 1**: Be added to a third party's bitcoin staking website. Integrate with Tomo Wallet Connect. | ||
| **Option 2**: Host your own bitcoin staking website using the reference [implementation](https://github.com/babylonlabs-io/simple-staking/) and [TypeScript](https://github.com/babylonlabs-io/btc-staking-ts/) / [Golang](https://github.com/babylonlabs-io/babylon/tree/main/btcstaking/) libraries. | ||
| **Option 3**: Develop bitcoin staking as a native feature connecting to Babylon Staking API or your own backend. | ||
| Placeholder content for stakers documentation. |
There was a problem hiding this comment.
llms-full.txt is nearly identical to llms-ctx.txt and contains the same placeholders
The only difference between this file and llms-ctx.txt is the 7-line "Optional" section appended at the end. The previous version had 1,856 lines vs llms-ctx.txt's 1,004 — they were meaningfully distinct. Now both are 178–185 lines of the same content, and both carry the placeholder strings. Either the generator deduplication logic collapsed two distinct outputs into one, or the content-fetching step did not run at all.
| - [Overview & Concepts Overview](https://docs.babylonlabs.io/overview/): Documentation for overview & concepts | ||
|
|
||
| ## Developer Documentation | ||
| - [Developer Documentation Overview](https://docs.babylonlabs.io/developers/): Documentation for developer documentation | ||
|
|
||
| ## Operator Documentation | ||
| - [Operator Documentation Overview](https://docs.babylonlabs.io/operators/): Documentation for operator documentation | ||
|
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| ## Staker Guides | ||
|
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| - [Stakers Overview](https://docs.babylonlabs.io/stakers/): Dual-staking model overview combining BTC and BABY staking | ||
| - [BTC Staking](https://docs.babylonlabs.io/stakers/btc_stakers/): How to stake Bitcoin on Babylon | ||
| - [BTC Staking Tools](https://docs.babylonlabs.io/stakers/btc_stakers/btc_staking_tools/): Supported wallets, exchanges, and staking platforms | ||
| - [Unbonding via CLI](https://docs.babylonlabs.io/stakers/btc_stakers/native_staking/unbonding_via_cli/): How to unstake BTC using the command-line interface | ||
| - [Geo Blocking](https://docs.babylonlabs.io/stakers/btc_stakers/native_staking/geo_blocking/): Geographic restrictions and compliance information | ||
| - [Liquid Staking Tokens](https://docs.babylonlabs.io/stakers/btc_stakers/liquid_staking/liquid_staking_tokens/): LST protocol information and supported providers | ||
| - [BABY Staking](https://docs.babylonlabs.io/stakers/baby_stakers/): Staking BABY tokens on Babylon Genesis | ||
| - [Co-Staking Guide](https://docs.babylonlabs.io/stakers/co_staking/): Dual BTC+BABY staking rewards and weighted formula | ||
|
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| ## Developer Resources | ||
|
|
||
| - [Developers Overview](https://docs.babylonlabs.io/developers/): Developer pathways for Bitcoin staking integration and smart contracts | ||
| - [Babylon Genesis Chain](https://docs.babylonlabs.io/developers/babylon_genesis_chain/): Cosmos SDK chain with CosmWasm support | ||
| - [Smart Contract Deployment](https://docs.babylonlabs.io/developers/babylon_genesis_chain/dapps/smart_contract_deployment/): CosmWasm smart contract deployment guide | ||
| - [Simple Staking dApp](https://docs.babylonlabs.io/developers/babylon_genesis_chain/dapps/simple_staking_dapp/): Example staking dApp implementation | ||
| - [Wallet Integration](https://docs.babylonlabs.io/developers/bitcoin_staking/wallet_integration/): Overview of Bitcoin and Babylon wallet integration options | ||
| - [Bitcoin Wallet Integration](https://docs.babylonlabs.io/developers/bitcoin_staking/wallet_integration/bitcoin_wallet_integration/): BTC wallet integration guide for extension, mobile, and hardware wallets | ||
| - [Staking Backend](https://docs.babylonlabs.io/developers/bitcoin_staking/staking_backend/): Backend infrastructure for staking services including API, indexer, and expiry checker | ||
| - [Global Parameters](https://docs.babylonlabs.io/developers/bitcoin_staking/networks/mainnet/global_parameters/): Mainnet staking protocol parameters | ||
| - [Developer FAQs](https://docs.babylonlabs.io/developers/faqs/): Developer-specific frequently asked questions | ||
|
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| ## Operator Guides | ||
|
|
||
| - [Operators Overview](https://docs.babylonlabs.io/operators/): Node types overview, networks, CLI reference, and monitoring | ||
| - [Node Installation](https://docs.babylonlabs.io/operators/babylon_node/installation_guide/): Full node installation guide | ||
| - [Babylon CLI Overview](https://docs.babylonlabs.io/operators/babylon_node/babylon_cli/overview/): babylond CLI command reference | ||
| - [Validator Setup](https://docs.babylonlabs.io/operators/babylon_validators/validator_setup/): Creating and configuring a validator node | ||
| - [Finality Provider Operations](https://docs.babylonlabs.io/operators/finality_providers/fp_operations/): Finality provider setup and management | ||
| - [FP Registration Guide](https://docs.babylonlabs.io/operators/finality_providers/phase_2_registration_guide/): Finality Provider registration process | ||
| - [Covenant Emulator](https://docs.babylonlabs.io/operators/covenant_emulator/): Covenant committee software setup | ||
| - [Vigilantes](https://docs.babylonlabs.io/operators/vigilantes/): Monitoring and reporting software | ||
| - [Staker CLI](https://docs.babylonlabs.io/operators/staker_cli/): Command-line BTC staking tool | ||
| - [Operator FAQs](https://docs.babylonlabs.io/operators/faqs/): Operator-specific frequently asked questions | ||
|
|
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| ## Specifications | ||
|
|
||
| - [Bitcoin Staking Scripts](https://docs.babylonlabs.io/guides/overview/babylon_genesis/specifications/bitcoin_staking_scripts/): Technical Bitcoin script specifications for staking | ||
| - [Staking Transactions](https://docs.babylonlabs.io/guides/overview/babylon_genesis/specifications/staking_transactions/): Transaction format specifications | ||
|
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| ## API Reference | ||
|
|
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| - [Staking API](https://docs.babylonlabs.io/api/staking-api/babylon-staking-api/): REST API for querying staking data | ||
| - [Babylon gRPC API](https://docs.babylonlabs.io/api/babylon-gRPC/babylon-grpc-api-docs/): Babylon chain gRPC API reference | ||
| - [CometBFT RPC](https://docs.babylonlabs.io/api/comet-bft/babylon-grpc-api-docs/): CometBFT RPC API reference for Babylon node | ||
|
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| ## Security | ||
|
|
||
| - [Audit Reports](https://docs.babylonlabs.io/guides/security/audit_reports/): Security audit documentation and reports | ||
| - [Bug Bounties](https://docs.babylonlabs.io/guides/security/bug_bounties/): Bug bounty program details | ||
| - [Staker Guides Overview](https://docs.babylonlabs.io/stakers/): Documentation for staker guides |
There was a problem hiding this comment.
Incorrect URL path for Overview section
The link https://docs.babylonlabs.io/overview/ does not match the actual site structure. The docusaurus config and all internal to: references in docusaurus.config.js use /guides/overview/ (e.g. to: '/guides/overview/'). The previous llms.txt also used /guides/overview/. This URL will 404 for any LLM or user following it.
| - [Blog](https://babylonlabs.io/blog): Latest news and updates | ||
| - [Discord](https://discord.gg/babylonglobal): Community support and discussions | ||
| - [GitHub](https://github.com/babylonlabs-io): All Babylon Labs repositories | ||
| - [Documentation](https://docs.babylonlabs.io): Full documentation site No newline at end of file |
There was a problem hiding this comment.
The file ends without a newline character. POSIX defines a text file as ending with a newline, and many tools (diff, cat, etc.) produce confusing output when it is absent.
Note: If this suggestion doesn't match your team's coding style, reply to this and let me know. I'll remember it for next time!
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Synced at: 2026-04-19 03:04 UTC Trigger: schedule Actions run: https://github.com/babylonlabs-io/babylonlabs.github.io-actions/actions/runs/24619628392
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