# Babylon Marketplace

## Refresher on Babylon and Babylon Co-Staking

#### **Babylon Genesis Chain Overview:**

Babylon is a Bitcoin-secured proof-of-stake (PoS) chain designed to extend Bitcoin’s security to other ecosystems without requiring wrapped assets or custodial bridges. It introduces a novel “Bitcoin Timestamping” and “Finality Provider” model, enabling Bitcoin to serve as the ultimate source of trust for other blockchains.

#### **Self-Custodial Bitcoin Staking:**

Babylon Self-Custodial Bitcoin Staking lets Bitcoin holders stake their BTC **directly on the Bitcoin network,** no wrapping, no bridging, and no third-party custody. When user stakes, their BTC stays in their own wallet and is **time-locked** using Bitcoin’s built-in script. They delegate their staked BTC to a Finality Provider, who helps secure Proof-of-Stake (PoS) chains. In return, they earn rewards.

#### **Co Staking:**

In 2025, Babylon introduced **Co-Staking**, a mechanism designed to align incentives between BTC stakers and BABY token holders.

* Staking BTC alone earns a base yield.
* Adding BABY in proportion to BTC (e.g., 1 BTC : 20,000 BABY) unlocks co-staking boosted rewards, \~5-10x the base yield.
* Co-staking is optional but incentivized, as higher BTC:BABY ratios lead to higher reward.

Example:
\
• Alice stakes 6 BTC + 50K BABY → weight 2.5
\
• Bob stakes 6 BTC + 150K BABY → weight 6

If 10K BABY rewards are distributed →
 Alice earns 2.94K, Bob earns 7.06K.

## How b14g Merge Marketplace Expands Babylon Co-Staking

#### **The Challenge:**

Co-Staking requires both BTC and BABY in a specific ratio. Many users only hold one asset, BTC **or** BABY, and can’t reach the ratio needed for higher yields. This limits participation and leaves potential rewards untapped.

<figure><img src="https://6440208-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWz8HjUaKRx2ncDQW1eR6%2Fuploads%2FUobHS5pVuVUv7Yr2K2kk%2F3%20(2).png?alt=media&#x26;token=6a4220a3-ce4c-485a-b36c-78f0c5c3c4a3" alt=""><figcaption></figcaption></figure>

#### **The b14g Merge Marketplace Solution:**

Merge Marketplace connects BTC and BABY holders so they can **co-stake together** and share rewards.

* **For BTC holders:** Lock your BTC on the Bitcoin network (self-custodial) and match with a BABY holder to unlock higher yield tiers.
* **For BABY holders:** Browse open BTC orders on the marketplace, then match your BABY stake with an order you prefer, earn co-staking rewards without needing to acquire BTC.

#### **Why It Matters**

Merge Marketplace makes Babylon Co-Staking:

* **More inclusive** — anyone can join, even with one asset.
* **More efficient** — reduces idle BTC and BABY liquidity.
* **More secure** — brings more participants into Babylon’s validator network.
* **Better balanced** — supports the ideal BTC:BABY staking ratio (1:20,000).

## How Merge Marketplace works <a href="#merge-marketplace-on-core-architecture" id="merge-marketplace-on-core-architecture"></a>

b14g Merge Marketplace is a set of core smart contracts deployed on Babylon Genesis. It integrates BTC staking and BABY staking to maximize rewards for both stakers.

<figure><img src="https://6440208-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWz8HjUaKRx2ncDQW1eR6%2Fuploads%2FHVYGsBbLh2Av4LC3HK9t%2FMerge%20Marketplace.%20Bitcoin%20staking.%20BABYLON%20co-staking%20(3).png?alt=media&#x26;token=786fe327-4653-4e9e-9d1b-9f1c6aeb45ae" alt=""><figcaption></figcaption></figure>

1. **BTC Staking:** Alice creates a merge order on the b14g Merge Marketplace. Alice then stakes her native BTC on Bitcoin network through Babylon’s native self-custodial staking method.
2. **BABY Staking:** Bob, looking to earn yield on his BABY tokens, matches with Alice’s order by staking his BABY. His BABY is sent directly to the Babylon staking modules.
3. **Reward Distribution:** Here’s how rewards are generated and sent back to users:
   1. Alice earns BTC staking rewards.
   2. Bob earns BABY staking rewards.
   3. The boosted co-staking rewards (from combined BTC + BABY) are automatically split between them.

**Key Points**

* BTC stays timelocked in users' wallet on Bitcoin network, no custody risk.
* All actions (orders, matches, rewards) happens on Babylon Genesis network.
* b14g contracts only coordinate co-staking, never hold user funds.
* Transparent and verifiable, anyone can audit activity on-chain.

## How to participate

{% content-ref url="../../user-guide/for-baby-holders/guide-babylon-marketplace" %}
[guide-babylon-marketplace](https://docs.b14g.xyz/user-guide/for-baby-holders/guide-babylon-marketplace)
{% endcontent-ref %}

{% content-ref url="../../faq/faq-babylon-marketplace" %}
[faq-babylon-marketplace](https://docs.b14g.xyz/faq/faq-babylon-marketplace)
{% endcontent-ref %}

## **In Summary:**

* **Babylon** enables BTC holders to stake natively and earn yield.
* **Co-Staking** boosts rewards when BTC and BABY are staked together.
* **b14g Merge Marketplace** connects BTC and BABY holders so they can co-stake, share rewards, and grow the network — without capital barriers.

With b14g, anyone can participate in Babylon Co-Staking — simply, safely, and collaboratively.