Babylon (milkBABY)

An overview of milkINIT, MilkyWay’s liquid staking token for Initia. For step-by-step instructions for minting milkTIA, jump to Quick Start.

Purpose of milkBABY

MilkyWay converts BABY into milkBABY, delivering three core benefits:

• Liquidity: Holders keep Babylon staking yield while the token remains transferable across ecosystems.

• Capital efficiency: milkBABY can be supplied to DEX pools, lending markets, and other DeFi protocols without forfeiting staking rewards.

How milkBABY Works

• Deposit: User IBC transfers BABY from Babylon to MilkyWay and calls Deposit. The protocol mints milkBABY at the current exchange rate. This is done under the hood through the 1-click stake functionality supported for milkBABY minting.

• Delegation: MilkyWay protocol delegates pooled BABY to a diversified set of Babylon validators.

• Reward accrual: Block rewards accumulate and are manually claimable.

• Redemption: Burn milkBABY to start unbonding. After unbonding period, the original BABY is released back to the user.

Incentive Design

• Staking yield: milkBABY captures native BABY rewards after validator commission.

• Protocol fee: MilkyWay retains a small percentage of rewards (set by governance) to fund audits, infrastructure, and further development.

• Liquidity incentives: Selected pools may receive BABY or partner-token incentives to bootstrap depth during launch phases.

Why Mint and Hold milkBABY

• Protect against inflation: Earn BABY staking rewards without lock-up.

• Deploy in DeFi: Use milkINIT as collateral, LP, or yield strategy collateral while rewards continue to accrue.

• Redeem: Redeem for Baby at any time; only the Babylon unbonding time applies.

• Airdrop eligibility: many projects snapshot liquid-staking balances alongside native stake.

Validator Slashing

• MilkyWay's diversified validator set, on-chain monitoring, transparent slashing records mitigate slashing risks.

milkBABY gives Initia stakers continuous yield, crosschain liquidity, and access to an expanding DeFi toolkit, all without surrendering the security of the base chain stake.