Bitcoin is used as a form of collateral, because of it’s market cap and excellent liquidity. For users looking to earn a yield on their Bitcoin, there are little to no options on the blockchain itself. However, BTC holders can participate in Decentralized Finance (DeFi) by tokenizing it and bringing it over to the Ethereum blockchain. Most DeFi protocols can make use of tokenized Bitcoins, but there’s one specially dedicated to such an endeavor. Meet Badger DAO.
Launched in Sep 2020 – Badger DAO is a community run project with fair token distribution through retroactive airdrops, a concept popularized by the famed Uniswap. BADGER tokens were sent to participants of various DeFi protocol’s governance, those who tokenized their BTCs earlier etc. It has a publicly known team and community members assist with the project.
It’s a decentralized autonomous organization (DAO) created for promoting the use of tokenized Bitcoin in DeFi protocols and finding novel uses for them. The community can present different ideas and projects to do so, voting commences and if approved, the DAO funds the efforts up-to completion. The BADGER is the native ERC-20 token, having the same cap as Bitcoin – 21 million.
No presale or seed round was conducted for the project. The supply is inflationary and team rewards are locked up-to certain time or performance based, according to the community’s wishes. The DAO controls most of the BADGER supply. It has two products currently: Badger DAO Sett and Badger DAO Digg.
The Aragon-powered governance is utilized by Badger DAO for community consensus and matters of on-chain voting for the future direction of the project. It has a large liquidity mining program, dispensing the BADGER / DIGG tokens for providing liquidity and to developers for advancing the project’s cause. Plus, the Gitcoin donations are also provided by the protocol.
Badger DAO Sett
Badger DAO Sett is the yield aggregator, specially optimized for tokenized Bitcoin. It can use renBTC, tBTC, sBTC and WBTC in multiple Yearn type strategies to generate yield. The process is automated using smart contracts, so the users don’t have to shift continuously to get the most optimized yield. It will soon introduce unwrapped BTC deposits, more strategies, IL prevention and single vaults with multi strategy variations.
Badger DAO DIGG
Badger DAO also has a rebasing token named Digg, which goes back to BTCs price every 24 hours. It’s sort of a synthetic product, tracking the price. Digg is designed to facilitate pegged BTCs used in yield farming.
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