My Kadena mints Babena

3 min readDec 5, 2021

Babena is a new token on the Kadena network. We took a CEFI concept and turned it into DEFI. It’s equivalent is called a certificate of deposit. You lock tokens for a period of time, and get more tokens out of it. The added twist is the longer you lock them for, the higher APY you get.

Finance Equivalent

A certificate of deposit (CD) is a product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Locks and Rewards

Babena is generated by locking existing Babena inside the contract for a set period of time. When the day comes, you get your original tokens back plus your rewards. The APY you receive is set the day you lock your coins and is not affected by others adding tokens to the contract. Longer locks rewards exponentially more, meaning 200 days at once will get you more than 100 days plus rewards locked another 100 days.

Reward Reduction

The reward multiplier is reduced with every new lock. The locking pool will only ever accept 50 million BABE, once the last locks end, the supply will be reached. While this number doesn't affect active locks APY, it makes it harder and harder to generate more.

Emergency Unlock

This function can be used after half your lock is passed. It allows you to get your tokens back faster but also includes a penalty. The penalty consists of 10% of your initial tokens, and your rewards are measured again with todays APY as if you chose to lock until today. With exponential rewards, this can greatly reduce APY. It is not recommended to use this function. The KDA penalty is fixed but Babe depends on how long you have left on the lock.

Liquidity Providers

Those offering liquidity in the BABE/KDA pair get rewarded with the full penalty amount incurred from emergency unlocks. Providing liquidity rewards from weak hands unlocking early.

Initial Supply

A smaller locking pool will be opened where you can lock 1.25m KDA for up to a year. This pool has higher APY but a faster and more aggressive decrease in rewards. You get your KDA back with your rewards after your lock ends, unless you use the emergency function where you lose 10% of it.

Lock Duration and Amount

Kadena:
60 to 365 days
Minimum: 10 KDA

Babena:
120 to 1095 days
Minimum: 10 BABE

Total Supply

The maximum number of Babena that could ever exist is slightly over 50 millions. Inflation starts pretty fast with the KDA pool being high reward, then slows down once only the Babena pool remains.

Launch

December 5 at 19:00 UTC
You can try to lock before but it will fail

Zelcore Tutorial

https://kadenaprojectnetwork.medium.com/how-to-stake-kda-with-babe-in-zelcore-9ba66055e74b