FAQ: Babylon Marketplace

What is the Babylon Marketplace?

The b14g Merge Marketplace (Babylon) is an on-chain coordination layer that connects BTC stakers and BABY stakers for co-staking.

It solves a key problem in Babylon co-staking: most users only hold one asset (either BTC or BABY), but co-staking requires both.

The marketplace bridges this gap by allowing:

• BTC stakers to list their BTC lock as an open order.

• BABY stakers to match those orders with their BABY stake.

Once matched, both sides share boosted co-staking rewards based on the ratio set in the Order.

In short, even if you only hold BTC or only hold BABY, the Merge Marketplace lets you earn co-staking yield without needing both assets.

The b14g Merge Marketplace is live on Babylon mainnet at https://app.b14g.xyz/marketplace/babylon

Who should use the Marketplace?

The Babylon Marketplace is designed for:

BABY holders

• who want to earn more yield from co-staking

• but do not hold BTC

BTC holders

• who want to unlock co-staking rewards

• but do not want exposure to BABY price risk

By matching these two groups, the marketplace creates a mutually beneficial staking partnership.

I only hold BABY. Do I need to hold BTC to participate?

No.

The marketplace allows single-asset participation.

If you only hold BABY, the system will pair your BABY with a BTC staker, enabling you to participate in co-staking without holding BTC yourself.

How is this different from staking BABY normally?

Staking BABY alone only earns base staking rewards.

Using the marketplace allows BABY to be combined with BTC to form co-staking positions, which can unlock higher yield opportunities as per Babylon network incentives.

How does marketplace work?

The b14g Merge Marketplace connects BTC holders and BABY holders so they can participate in Babylon co-staking together.

BTC Staking A BTC holder (e.g., Alice) creates a merge order on the marketplace and stakes her native BTC through Babylon’s self-custodial BTC staking mechanism.

BABY Staking A BABY holder (e.g., Bob) matches Alice’s order by staking BABY tokens, which are sent directly to Babylon’s staking modules.

Once matched, the BTC and BABY form a co-staking position, and rewards are shared between both participants according to the reward-sharing ratio defined in the order.

Key Points

• BTC remains timelocked in the user’s wallet on the Bitcoin network, no custody risk.

• All actions (orders, matches, rewards) happen on the Babylon Genesis network.

• b14g contracts only coordinate matching, and never hold user funds.

• All activity is transparent and verifiable on-chain.

For more details: Babylon Marketplace docs

How are rewards distributed?

Rewards are distributed proportionally after a 20% performance fee:

• BTC staker: Earns rewards from their staked BTC.

• BABY staker: Earns rewards from their staked BABY.

• Co-Staking Boost Rewards: The boost is shared between BTC and BABY stakers based on the reward-sharing ratio defined in the order.

All reward calculations and distributions are handled on-chain by the marketplace contracts.

Why does the APR vary for each order?

APR varies because each order may have different parameters, including:

• BABY emission policy from Babylon Genesis.

• Validator performance and commission rates.

• Reward-sharing ratio set by each order.

• Co-staking ratio of BTC and BABY in the position

These factors combine to determine the final APR for each order.

How can I participate?

Check this User Guide.