# FAQ: Babylon Marketplace

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<summary><strong>What is the Babylon Marketplace?</strong></summary>

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>

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<summary><strong>Who should use the Marketplace?</strong></summary>

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**.

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<summary><strong>I only hold BABY. Do I need to hold BTC to participate?</strong></summary>

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.

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<summary><strong>How is this different from staking BABY normally?</strong></summary>

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.](https://docs.b14g.xyz/products/for-baby-holders/babylon-marketplace#co-staking)

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<summary><strong>How does marketplace work?</strong></summary>

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](https://docs.b14g.xyz/products/for-baby-holders/babylon-marketplace)

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<summary><strong>How are rewards distributed?</strong></summary>

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**.

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<summary><strong>Why does the APR vary for each order?</strong></summary>

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.

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<summary><strong>How can I participate?</strong></summary>

Check this [User Guide.](https://docs.b14g.xyz/user-guide/for-baby-holders/guide-babylon-marketplace)

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