In 2018, the Bitcoin price plunged to $3.2k. Earlier that year, it was trading at $19.8k. A record at that time.
The correction was painful for holders. However, it didn’t kill the idea. Instead, the price contraction made it more robust and more refined, forcing even more evolution in how ordinary folks handled finance.
The result was the birth of decentralized finance, DeFi.
As of writing, the number of assets locked under these decentralized Money Legos in Ethereum alone is at a record high of $25.2 billion.
In early 2020, this stood at around $850 million.
A 29X growth, year-to-date.
Following suit is another wave of a crypto rally.
Bitcoin, on Jan 5, breezed to a new high of $42k. Ether prices are also on a tear, racing to over $1.4k (ATH).
Building Bitcoin DeFi Bridges
The cool thing about DeFi is its innovation and elimination of barriers.
Currently, the major hurdle facing BTC holders in finding secure, mature, and trustless bridges of moving BTC from the Bitcoin network to DeFi in Ethereum without risks of exploitation.
As of today, there is over $4.6 billion worth of BTC tokenized in Ethereum, used as collateral in DeFi.
However, this can be accelerated as the amount, in all honestly, is lower since more people want to benefit from the explosive DeFi.
The only way of doing this–and unlocking the over $600 billion of under-utilized value is by building and creating trustless, community-owned, and easy-to-use infrastructure.
what is Badger DAO
Badger DAO is doing just that.
How? You may ask.
Well, Badger DAO is an open-source and decentralized automated organization (DAO) in Aragon dedicated to building products and infrastructure to fast-track the movement of Bitcoin as collateral to not only Ethereum but to other smart contracting platforms.
The platform is a shared space where developers—called Badger builders, collaborate with one thing in mind: Build and avail Bitcoin as collateral to as many blockchains as feasible.
As a DAO, their incentives are aligned, eliminating needless competition.
The developer infinitely earns a percentage of fees and BADGER tokens from the developer mining pool for every build.
What sets Badger DAO apart is that the project actually had a fair provable launch with audited codes and measures to prevent whale games.
Two Flagship Badger DAO products: Sett and DIGG
Badger DAO is community-driven, and before development, products must first be pitched and voted for by token holders.
All decisions are voted, and the BADGER governance token is fairly distributed, allowing community members to participate and draw benefits.
Their foundational products are Sett–inspired by Yearn Finance Vault but for tokenized BTC only, and Digg.
Sett (and Super Setts) is a DeFi aggregator with flash loan mitigation measures focused on tokenized BTC only using five strategies. Upon deposit, users can earn a yield as the protocol’s smart contract does the leg work.
To incentivize participation, farmers depositing tokenized BTC to the Sett vault earns BADGER and DIGG depending on the weekly emissions rate that’s decided by the community. Besides the 0.5 percent fee, another 4.5 percent of the profits earned are deducted to cover for Gas and transaction costs.
With further incentives, participants can stake wrapped tokens into the Badger Geyser to earn more BADGER tokens. Rewards depend on the duration of the staking period.
Digg is a non-custodial synthetic Bitcoin on Ethereum, pegged to the price of BTC with flexible supply and a re-base function, adjusted depending on BTC spot rates.
The goal of Digg is to rid centralized third parties and to create a synthetic token that tracks the price of Bitcoin, trustlessly, adjusted inversely depending on Bitcoin’s price.
Initially, DIGG and BADGER tokens were airdropped to users interested in Bitcoin DeFi.
Under the Badger Early Contributor Program, 14.5 percent of all DIGG (4,000—dropped from 6,250) and 5 percent of BADGER coins (21 million) were allocated to early contributors. Earned tokens will be unlocked linearly every two weeks for six months.
Approved products (garnering 10 percent of the total supply BADGER votes) are developed by the community in collaboration with the Badger DAO operations team.
Unique to the Badger DAO is their approach to make product development transparent, open-source, and fair from the onset.
Their governance token, BADGER, has no intrinsic value.
However, their role besides governance is in:
- Staking in the Sett vault
- Liquidity provision
Minting MEME NFTs Users can also hold the asset, benefiting from capital gains.
BADGER tokens are distributed as follows:
- 4.83 million is for liquidity mining
- 3.15 million is for developer mining
- 7.35 million is for the DAO treasury
- 420k is for Bitcoin core developers
- 3.15 million is for airdropping to the community.
- 2.1 million is for the founding team. For every block mined during the liquidity mining event that takes eight weeks, a BADGER token is rewarded to the founding team.
These are some steps that make Badger DAO unique and interesting, especially as they are inclined to build products to unlock the use of Bitcoin as collateral in other projects:
- A fixed supply of 21 million BADGER tokens like Bitcoin
- Audited code by third parties like Zokyo.
- No surprise launches
- No crowdfunding
- A publicly known founding team
- Founder rewards that are time-locked with white-listing functionality
- Community governed
The Badger DAO Team
Platform users will mine BADGER, and 10 percent is for the founding team. The remainder is set aside for the community.
The Badger DAO Founders are:
- Chris Spadafora is the operations lead. He’s a crypto enthusiast and investor.
- Ameer Rosic, an investor and a founder of other crypto projects.
- Albert Castellana, the product advisor, and CEO at StakeHound.
- Alberto Cevallos, the technical advisor. He also advises Travala.
In the spirit of community and collaboration, the founding team has partnered with dOrg—a development collective specializing in building DeFi products, custom DAOs, and Web3 Tooling.
This team has worked with the likes of established DeFi megaliths like Balancer, Aragon, The Graph, DeversiFi, and others.
Still, Badger remains as a DAO. The community takes charge in the product’s operations, submitting code, and marketing efforts.
Badger DAO Market Performance
As of Jan 19, the BADGER token was trading at $14.61 with a market cap of $29.9 million. The token is up 86 percent in the last week and just broke ATH and seems to be ready for price discovery.
Notably, the Badger DAO token has the attention of the investment community. Roughly after a month of launching, the token’s market cap has risen to $30 million with fluctuating but decent average daily trading volumes.
Most BADGER trading is at Uniswap. There is also small activity at MXC Exchange and at Gate.
However, the token’s liquidity remains low.
Short Term Catalysts
- BADGER’s price performance is impressive. While prices have contracted, it is still up 2X from its all-time low but with a decent market cap of $10.2 million. Analysts are confident of a recovery and a subsequent rally.
- The token is presently present in Uniswap and few centralized exchanges. However, once Badger DAO gains traction, cements its position in the top-10, BADGER may find support from the likes of Binance or Gemini.
- There will be only 21 million BADGER tokens, a relatively low market cap, fixed with liquidity mining to attract farmers and protocol users.
- Relative to the projects TVL of over $570 million, the utility BADGER token is one of the most undervalued projects in Ethereum and Bitcoin DeFi, breaking into the top-10 by TVL.
- Huge DeFi whale @0x_b1 is already building up their position in BADGER. Their liquidity mining program only runs for a limited period presenting more opportunity for traders and investors confident of the protocol’s prospects.
- Digg is live, and three dedicated vaults are live. All three vaults earn BADGER and DIGG as rewards.
- The BADGER/wBTC pool is one of the most liquid in the new Sushiswap’s Onsen Program. Liquidity exceeds $2.3 million, days after Badger DAO activated two Sushiswap optimizer vaults. There are two vaults—wBTC/ETH SLP and BADGER/wBTC SLP. Instead of dumping SUSHI for protocol users, their Sett vault strategies stake them for xSUSHI.
- Badger v2 is out with an even simpler interface and layout that’s easy to use for investors who want to leverage Setts, stake, or use DIGG.
- It is also easier to track the Badger DAO pools’ performance following support from DeBank DeFi, Coingecko yield farm page, and a tracker, DappRadar.
- Badger DAO has partnered with Nexus Mutual allowing users to insure their deposits against smart contract flaws. Users who stake NXM also earn NXM and 0.05 BADGER/week as rewards marking the beginning of a new shield mining campaign.
Long Term Catalysts
- Badger Sett stakers will earn a portion of the vault’s shared fees. Sett takes after Yearn Finance vaults but with a focus on Bitcoin DeFi and employs over five strategies.
- The incentives in place by the team, rewarding protocol users, is already successful and will drive more organic participation. Their Flash loan and whale fighting measures are proving successful.
- Besides an intuitive interface, the protocol continues to attract more users. By Dec 31, 5,500 unique addresses (people) had interacted with the platform and therefore qualified for DIGG and BADGER airdrops. The number should rise in the coming months.
- On development, following the launch of Digg, the team plans to launch a new Bitcoin AMM, introduce new vaults, mint native Bitcoin and wBTC/renBTC, and introduce the borrowing of stablecoins against user’s Badger vault position.
- Badger DAO has integrated with Ren. Users who have ever minted (tokenized BTC) using the protocol can earn BADGER tokens.
- The multiplier effect in the protocol’s staking means the longer they stake, the more BADGER tokens they receive during the liquidity mining event. There is a higher reward multiplier up to 3x after 8 weeks.
- All of Badger DAO’s code is audited by a third-party (Haechi Audit) and is has been founded secure.
- DeFi has a total of $20 billion as TVL across different protocols. Badger DAO is accelerating the movement of Bitcoin DeFi so that more users can use their BTC in DeFi. Using their flagship product–and therefore being part of their goal, means receiving BADGER either through airdrops or Sett.
- Badger DAO is allocating funds for Gitcoin and has a grant for Bitcoin core developers. Already, the first $200k was sent in late December 2020 to the Gitcoin Grants Program. The more hacker-proof and refined Bitcoin is, the more successful Badger DAO becomes as they drive to make Bitcoin DeFi a reality and lucrative.
- The Badger DAO founding team is publicly known, reducing the chances of a rug pull.