Hey, thanks for the questions! I work as Lead Solution Engineer at Babylon Labs, let me try to address questions.
The Temp Check is scoped to integration architecture. Risk and configuration parameters, the supporting risk analysis, and the specific Arbitrageurs and Universal Challengers will be presented in the follow-up ARFC, prepared in collaboration with Aave DAO risk providers.
TBV has multiple actors, each with their own incentive to act as a challenger. Challengers monitor every claim in real time, and any one of them can block an invalid one during the fraud-proof window.
- Vault Provider (VP). A service that handles vault creation, vault claims and challenges. It can be run by the depositor or delegated to an external operator for a commission, with a fallback redemption path always available. The incentive is protecting their BTC (when self-run) or earning a commission (when delegated).
- Arbitrageur. A permissioned set with redemption rights. Arbitrageurs buy vaults from the BTC Vault Swap Spoke and redeem them for a margin. Their incentive to challenge is preventing wrongful claims, since they could otherwise have captured the same vault.
- Universal Challenger (UC). A permissioned set with challenge-only rights, acting as a protocol-level fallback. UCs monitor every claim and challenge invalid ones. The set is composed of entities aligned with the protocol’s long-term success.
Both Spokes (Babylon Core Lending Spoke and BTC Vault Swap Spoke) and the V4 Hub that provides their liquidity will be governed by Aave DAO. This means Aave DAO controls all Spoke parameters, including risk parameters, Hub liquidity allocation, pause and freeze, and listing decisions. On the Babylon side, Babylon governance representation governs the TBV protocol, integration contracts, and the addition of permissioned actors, with specific participants and parameters to be disclosed in the ARFC.