It is not new information that Babylonians don’t settle, if they did the great civilizations of Egypt and Judah would not have been conquered, neither would the hanging gardens (among the 7 wonders of the ancient world) be built in the heart of the empire. This is the precise reason the team has decided to construct the modern day market centre for all Babylonians and slaves alike, adn in this article we will try our best to explain it;
It’s not news that Babylon was adored because of trade centres among other things. Bringing that to 2021 AD would require adopting mechanisms that would have made the kings of Babylon proud.
BabylonSwap is a decentralised exchange using DEX owned liquidity. The era of having liquidity miners seek yield across the metaverse and endanger those that would want to use protocols for their futures has come to an end. The Babylonian team don't see the reason why a degen on Twitter can only swap on a dex if the liquidity providers permit. This isn't the permissionless web that we desire, hence the formation of BabylonSwap.

Why Babylon?

  1. 1.
    DEX Owned Liquidity: This concept mentioned earlier simply means that we'll be the first real DEX that would allow you to swap at any point in time without the permission of liquidity providers looking for alfa.
  2. 2.
    Transaction speed: Solana is adored by many as a platform for decentralised exchanges and a major reason for that is the speed it possesses. Solana clocks speeds of up to 65,000 transactions per second using the novel proof-of-history consensus. Babylon deeply views Solana as the scalable solution for easy exchange, and we’re delighted to integrate and optimise our smart contracts to take full advantage of its speed and scalability.
  3. 3.
    Low gas fees: Besides exchange fees which are minimal, the only other fees for our citizens would be that of the blockchain (Solana) which typically has fees between 0.0001sol to 0.001sol. Additionally, a 0.22% fee (which reduces based on SRM tokens held) is charged if the route for transaction is Serum, in which case you pay 0% to BabylonSwap.
  4. 4.
    Market Unity: A major flaw of exchanges built on the Ethereum blockchain is the focus on self-liquidity and as such unproductive competition. With that in mind, the team has decided to adopt the on-chain order book system of Project Serum. Babylon adopts the Central Limit Order Book (CLOB) of Serum, and we do this by comparing the price impact of our native pools to Serum channeling the transaction through the best means.
  5. 5.
    Simplicity vs Functionality: A hurdle for most exchanges is balancing between making the user experience intuitive (for everyday users) and at the same time having the functionalities that would appeal to more complex users (or instances). The Babylonian team, using the integration of Serum, would enable basic everyday tasks like swapping, and simultaneously support features like trading, even adopting limit orders and charting.
  6. 6.
    Interoperability: Asides having access to most of the liquidity on Solana via Serum, we have decided that it is in our best interest to produce a framework for enabling other marketplaces (irrespective of how pitiful) to tap into the ecosystem we’ve created. We’re introducing a partnership programme, this programme is for the allies of Babylon to adopt our mechanisms backend to be able to support Solana native tokens irrespective of which blockchain they run on, more about this would be released soon.

How to Participate?

Babylon swap is a permission-less exchange built on Solana, thus participating requires a Solana Program Library (SPL) such as Phantom, Serum’s, Ledger, Solong, etc and a token with the gas fees you’d need for the transaction.
For liquidity providers, you can provide liquidity by;
  1. 1.
    From bonding (that’s giving up your liquidity position in external pools for BBY token at a discounted price after a vesting period of 10 béru).
  2. 2.
    By adding a trading pair accepted in equal proportions.
To keep our LPs at peace, Babylon uses a constant product function x*y = k. This equation is used by many AMMs because given any two tokens, without any information about their relative prices or value, it can provide unlimited liquidity to traders. Babylon uses this equation and prices orders on the Serum order book using the great Fibonacci sequence to provide up to 20 orders at a variety of prices with spreads as small as 25bps between them, which is optimised for Solana (just like Raydium does but for the reserve currency)
Also our platform allows for permission-less pool creation, with the pool also placed on Serum’s order book to allow for a pleasurable experience for Babylons. Pools can have dual properties, in the sense that those that supplied LP can receive tokens both in BABYLON-USDC/ BABYLON-SOLANA/SOLANA-USDC or BABYLON.

For true Babylonians: