Liquidity depth per major asset
Babylon Protocol's assessment for RD-F-065 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
DEX slippage depth metric is inapplicable. The analogous exit liquidity constraint is the BTC unbonding queue: (1) covenant-assisted fast path requires staker + covenant 6-of-9 co-signature and BTC block confirmation; (2) slow timelock path requires waiting for script-encoded timelock expiry; (3) no immediate secondary market at protocol layer for Phase-2 BTC staking positions. LRT derivatives (Lombard LBTC, Lorenzo) provide off-protocol secondary liquidity. Yellow: withdrawal is multi-day to multi-week, there is no instant redemption, and simultaneous mass unbonding would queue against covenant committee co-signing capacity.
Sources #
- GitHubBabylon staking-script.md — Taproot UTXO spending pathsBabylon staking script docs — encodes timelock, unbonding, and slashing spending paths; timelock duration defined by Babylon Genesis parametersretrieved 2026-05-04
- Figment — Babylon's Bitcoin Staking Contract ExplainedFigment: Babylon staking contract explainer — confirms Taproot covenant structure, unbonding co-sign requirement, timelock pathretrieved 2026-05-04
Methodology #
Measure on-chain liquidity depth for protocol-held assets at 2% and 5% price impact in USD.
See the full factor methodology and distribution across all protocols →