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9
minute read
September 3, 2025

How to Use Tower DEX on Babylon Genesis

Learn how to connect your wallet, bridge assets, and start swapping or providing liquidity on Tower DEX— a native exchange for Babylon Genesis and BTCFi.

🔑 Key Takeaways

  • Tower DEX is a native decentralized exchange on Babylon Genesis, purpose-built for Bitcoin-based DeFi (BTCFi).
  • It launched BabyDEX in April 2025, enabling trading of BABY, LSTs, and LRTs.
  • Two pool types power liquidity: XYK pools (classic constant-product) and PCL pools (passive concentrated liquidity).
  • Users can swap tokens, provide liquidity (single- or double-sided), and earn rewards through incentives and referral points.
  • Bridges like Union and Eureka simplify moving BTCFi assets from Ethereum, Cosmos, and EVM chains onto Babylon Genesis.

Tower DEX is a native decentralized exchange (DEX) built for the Babylon Genesis ecosystem, designed to unlock the full potential of Bitcoin in decentralized finance (BTCFi). 

Tower offers a streamlined, user-friendly trading environment where users can swap, provide liquidity, and earn rewards with Bitcoin-based assets on Babylon Genesis.

Tower DEX launched its first product, BabyDEX, in April 2025. This “baby” marks the genesis of BTCFi on mainnet, allowing users to trade Babylon-native assets like the BABY token and various Bitcoin Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs). 

How Tower DEX Works

Tower DEX operates like many modern DEXs, but it’s tailored for Bitcoin and Babylon Genesis-native assets. It offers an intuitive trading experience powered by two kinds of liquidity pools, a rewards system, and advanced cross-chain integrations.

Key Components

  • XYK Pools (x*y = k): Classic constant-product pools similar to Uniswap v2. Great for passive LPs who want broad exposure.

  • PCL Pools (Passive Concentrated Liquidity): Inspired by Uniswap v3, these pools concentrate liquidity around price ranges without the need for active management.

Core Features

  • Swapping: Users can swap assets with minimal slippage thanks to intelligent routing between pools.
  • Liquidity Provision: LPs can choose double-sided or single-sided deposit strategies. Single-sided LPing is exclusive to PCL pools.

How to Use Tower DEX

Ready to get started with Tower? Follow this step-by-step guide:

Accessing the dApp

Connecting a Wallet

  • Click “Connect Wallet” in the top right corner
  • Choose from Keplr, Leap or Cosmostation

Funding Your Wallet

  • First, ensure you have a small amount of BABY to cover transaction fees.
  • You'll also need the Babylon-native tokens you want to trade or provide liquidity with (e.g., USDC, LBTC, solvBTC, or eBABY).
  • To bridge assets, use the Bridge Selector tool at tower.fi/swap, which guides you to the best bridge based on your tokens and pool. Bridge Options:
    • Union: One-click bridging from BOB, Corn, or any EVM chain
    • Eureka: Import BTCFi assets from Ethereum and Cosmos network.

Core Actions

Swapping Tokens

  • Navigate to the “Swap” tab
  • Select your input and output tokens
  • Review slippage and routing details
  • Click “Swap” and confirm via wallet

Providing Liquidity

  • Go to the “Pools” tab
  • Select an XYK or PCL pool
  • Enter your deposit amount, confirm, and start earning points

Tips & Best Practices

  • Monitor your slippage on volatile tokens, especially in low-liquidity pools
  • Use referral links to earn passive bonus points
  • Check pool incentives before providing liquidity — rewards vary by project
  • Use bridge selector to understand what token you need exactly for trading or LPing

Useful Links

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