defirisk.co
rubric v1.7.0

Low-threshold multisig vs TVL

Babylon Protocol's assessment for RD-F-028 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

Covenant committee (Bitcoin-layer analog to admin multisig) is 6-of-9 with Babylon Labs holding 3/9 keys (33.3%). Babylon Labs alone cannot reach threshold (needs 6), but Babylon Labs + any 3 others = threshold. At $4.16B TVL, this concentration is notable — below peer norm for comparable TVL tier. Covenant committee cannot steal BTC (only co-signs unbonding) but could co-sign unauthorized unbonding if compromised. BABY governance is DAO-level with no fixed signer set.

Sources #

Methodology #

Determine whether the multisig threshold is abnormally low relative to TVL peer cohort (e.g., 2-of-3 for a protocol with >$100M TVL where peer norm is 5-of-8).

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol babylon-protocol factor RD-F-028 score yellow collected_at 2026-05-04 19:43:27