Enhancing Elys Network with Bitcoin security and Babylon’s innovative security architecture
Autonomy and easy access to financial systems are some of the key factors driving the rapid growth of the DeFi industry. But to fully reach mainstream adoption, we’re still missing key infrastructure that enables non-crypto native users to participate in a decentralized economy effortlessly. Elys Network, a cutting-edge, layer 1 blockchain built on the Cosmos SDK, is working to provide this missing piece of infrastructure through its non-custodial decentralized exchange, oracle-based multi-asset index pools, native margin trading capabilities and more.
Babylon is thrilled to announce its testnet integration with Elys Network, enhancing the network by leveraging Babylon’s innovative Bitcoin security architecture and enabling the growth of an ecosystem that caters to both crypto natives and newcomers alike.
Feature-Rich Apps in the Elys Network
Elys is a decentralized suite of financial applications in the Cosmos ecosystem with many unique features, some of which include:
- A hybrid DEX with automated market maker (AMM) & unique oracle based model allowing Elys Network to overcome liquidity fragmentation and trading depth
- Index pools based on oracles that enhance portfolio diversity and minimize volatility
- Full suite of margin trading capabilities with integrated oracle pricing, powered by liquidity providers
- USDC Lending to facilitate leverage for liquidity providers
- Non-inflationary system income, distributed entirely in USDC to network participants
- Premier UX built from the ground up, USDC as settlement token, easy on/off-ramp and more
Incorporating Babylon's Bitcoin Security Architecture
Babylon's integration with Elys will introduce heightened security features to the network, improving asset protection for users and transactions.
The Babylon testnet integration amplifies Elys Network's system security, drawing on Bitcoin's security infrastructure to serve as a timestamping server. Babylon's Bitcoin Timestamping Protocol allows events from Elys Network to be timestamped onto Bitcoin, thereby conferring the same level of security to these events as Bitcoin transactions receive.
A standout benefit of this integration is the significant reduction in unbonding time. While unbonding requests on the Cosmos chain generally take 21 days to process, Babylon's Bitcoin security shortens this period, ensuring that users only need to wait about a day for the Bitcoin timestamp of their unbonding request transaction to be confirmed with adequate depth on Bitcoin. What the Babylon integration brings to Elys Network in terms of stake unbonding is a secure and reliable unbonding process regardless of how long or short Elys desires.
The integration combines the long-range security of Bitcoin's Proof-of-Work with the short-range security of Proof-of-Stake chains. The formidable PoW mining power of Bitcoin offers reliable and irreversible timestamps, resulting in an immutable ledger. Babylon extends this robust security to Elys Network, enabling blocks from the Elys Network to be timestamped onto the Bitcoin network. This pioneering approach arguably positions Elys Network among the most secure PoS chains, as it combines the best features of both PoS and PoW security mechanisms.
A Vision for Decentralized Finance
Both Babylon and Elys share a vision for a future where decentralized finance is widely adopted, and individuals have financial autonomy. This integration between Babylon and Elys is a major step in making DeFi applications more accessible to both crypto-native users and those new to the industry.
.png)