Recently, a crypto airdrop is highly looked upon in the crypto community. Some analysts even said it would be bigger than Uniswap. The token project is Badger DAO ($BADGER), a DeFi protocol that brings Bitcoin into DeFi. $badger is now available to trade in FTX with $30 fee voucher, dapp.com community exclusive benefit.
Badger DAO daily transactions went up to over 3.4k soon after it launched. $Badger token price also went up by over 150% and reached ATH on Dec 6.
There are 3 reasons to explain why it gets so popular:
First, Badger DAO rewards users based on their activities related to BTC across 19 different protocols, such as minting WBTC/renBTC/sBTC, etc. Over 32K unique addresses are qualified for the airdrop, quite a large-scale airdrop. You will find its name of Badger is also tricky. It comes from a popular Meme in the bitcoin community that refers BTC to as “the honey badger of money”.
Second, Badger's Sett is like Yearn.Finance, but for BTC assets. It links BTC and major DeFi tokens: you can stake DeFi tokens/tokens that represent Bitcoin, such as WBTC, renBTC or sBTC.
Third, Badger DAO will launch a project called Digg based on AMPL and issue a cryptocurrency $DIGG that is pegged to bitcoin, in other words, a “BTC stablecoin”.
You are able to earn $BADGER if you:
Participated in SUSHI Governance
Supplied/Borrowed wBTC on Compound
MetaCartel DAO Members
Deposited/Borrowed wBTC on Aave
Participated in Yearn.Finance Governance
Participated in Yam Governance
The LAO Members
Deposited in sBTC and renBTC pools on Curve.fi
Participated in 1Hive Governance
Provided liquidity for wBTC/ETH pool on Balancer
Supplied/Borrowed wBTC on Maker
Donated to Gitcoin
Provided liquidity for wBTC/ETH pool on Uniswap
Member of dORG DAO
Participated in Harvest.Finance Governance
At the launch of the $BADGER governance token, 10% of the $BADGER supply will airdrop to users. To claim your $BADGER rewards all you have to do is go to Badger’s website, connect your wallet and click the “hunt” tab. There you will see how much $BADGER you’ve been rewarded.
You can then click “claim” or “claim & stake”. If you just want to claim the rewards, you’ll have your $BADGER transferred to your wallet. If you decide to stake as well it will be automatically deposited into the Badger Sett vault where you will earn additional $BADGER during the 8-week liquidity mining event. Badger will auto compound the rewards you receive and put them back into the vault so you earn even more $BADGER.
There’s an additional rule: You will have a 48 hour grace period from launch to claim your rewards. At that point, every 24 hours, 20% of your $BADGER rewards will be redistributed to a community pool. That’s why it’s important for you to claim your rewards as fast as possible! At the end of 5 days, there might be no more rewards left. ONLY 3 DAYS LEFT now.
When you successfully claim your $BADGER tokens, what can you do with them? We’ve mentioned above that you can stake them in Sett Vault.
A Sett is a tokenized bitcoin vault, which is similar to Vaults in Yearn.Finance. The difference is that in Yearn.Finance, you can deposit ERC20 assets and the protocol will execute automated strategies across DeFi protocols to produce yield, while in Badger’s Sett, you deposit BTC-based assets.
With Badger Sett, you can earn from these assets:
renBTC Curve Pool LP
sBTC Curve Pool LP
tBTC Curve Pool LP
$Badger<> WBTC Uniswap LP
What are the differences between Badger Sett and other normal DeFi products?
First, Bridge BTC with erc-20 DeFi yield farming. You can see that in the 5 liquidity pools in Sett, 4 of them are using mapped BTC assets like renBTC, sbtc, wBTC, tBTC. You don’t want to sell your BTC given the high potential of it breaking $20k? Now BTC can join DeFi yield farming to earn rewards!
Second, main DeFi token ($curve) liquidity pool to lower your risk. Unlike other DeFi products (eg, Harvest Finance, Pickle Finance, etc) that only provide liquidity pools of their platform tokens which have a higher risk to investors, here in Badger Sett, you can lower the risk by choosing the $curve liquidity pool (curve.fi/renBTC LP, curve.fi/sbtc LP, curve.fi/tBTC LP).
But of course, higher risk, higher return. So you can see the highest APY above is the Badger/wBTC LP pool, 1847% APY. You can know how many transactions are making into the Badger staking pool by checking the “transaction” number on Badger product page.
What interest are you actually earning?
Your interest consists of 2 parts - Uniswap liquidity provider interest and Badger Sett yield farming interest (the APY showed in the above picture). Take Badger/wBTC Uni LP pool for an example, the interest that you will earn is 1847.4377% staking interest + Uniswap Badger/wBTC liquidity pool provider rewards.
Basically, Sett is a Yearn.Finance for BTC assets. Besides Sett, we’ve mentioned another core project of Badger, Digg.
Digg is a non-custodial synthetic Bitcoin that based on the Ampleforth protocol built on the Ethereum blockchain. It’s an elastic supply cryptocurrency that’s pegged to the price of Bitcoin. Every day the supply is automatically adjusted across all wallets based on the USD value of $DIGG vs $BTC. If Digg’s price is higher than BTC, your wallet balance increases; if it’s lower than your balance decreases. This means DIGG is non-dilutive. Like Bitcoin, if you own 1% of the overall network you will always own 1% unless you actively make a transfer.
You can compare it with Ampleforth. Every day the supply is adjusted based on demand with the intention of decoupling from Bitcoin’s volatility. Ampleforth has announced that it will expand to Polkadot and Tron blockchain.
See Ampleforth social signal/users/transactions/volume data surge since Dec.
Digg will launch its token through a liquidity mining event, and the project will be totally owned by the Badger community and token holders. It is also highly-expected and eagerly awaited.
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