投票进展：DAO Committee /7 通过
研究种类：Bagder, Sett, Rebase, Ampl, Defi
贡献者：黑白BQ, DAOctor @Daorayaki
Badger Finance核心产品是Sett Vault，它允许代币化的比特币自动获得收益；Badger DAO，专注于将比特币带入 DeFi 的去中心化组织,已经在12月份正式上线，并已开启空投治理代币 BADGER的发放以及流动性挖矿活动。
1.Badger Dao：权力代币，拥有它基本上可以参加Badger Dao所有的事情，并且它作为统筹规划参与所有的DeFi；
Badger DAO 基于 DAO 解决方案提供商 Aragon 的 Company Template 构建，代币 BADGER 可用于通过提案、投票来参与财务和组织决策的治理。具体来说，BadgerDAO 在治理聚合平台 Snapshot 进行决策治理，一旦作出决策后，然后通过 Aragon 上链生效这些治理决策。
在 DIGG 在启动时，将引入新的 Sett，其中，我们将新的Sett 统称为 DIGG Setts，而原来就存在的 Badger Setts 则属于非 DIGG Setts。
系统将根据 DIGG 相对于比特币价格变化的实际情况，调整 DIGG 代币奖励在「DIGG Setts」和「非 DIGG Setts」中的百分比比例，从而刺激 DIGG 的价格重新与比特币价格锚定。
Chris Spadafora：运营主管。一位连续创业者，在 Badger Dao 之前的最新项目是 Alwayshodl.com。他还是 Angelrock的合伙人，该公司为长期加密资产提供战略咨询。
Ameer Rosic：Badger DAO 运营团队的一员。也是一位连续创业者，Blockgeeks.com 的创始人。
Albert Castellana：Badger DAO 的产品顾问。他是 Stakehound.com 的联合创始人兼首席执行官。
Alberto Cevallos：技术顾问。他还是 Travala 顾问，Metl 的创始人。
如果没有出现“快速致富”的尝试，那这一切都不会出现。匿名开发者（如pasta, noodle, hotdog, kimchi…等）的食物代币正在根据流行的DeFi 协议发布未经审核的分叉代码，并在数小时内获得数亿美元的收入。这些项目大部分没有内在价值或目的。
Yearn.finance 之类的项目从vc或者投资者控制，转为“fair token launch”的模式，让社区从项目启动时就握有项目的掌控权
2020 年1 月1 日，以太坊上有1000 个比特币
2020 年9 月25 日，以太坊上有56,000 个比特币以上。
随着智能合约基础设施的成熟、DeFi 的兴起、代币公平发行的需求、比特币在DeFi中的潜力以及社群对产品所有权的渴望，我们决定创建Badger DAO。
1）Badger DAO 是什么
Badger是一个去中心化的自治组织（DAO），而这个组织的目的只有一个：构建一个加速比特币作为其他区块链抵押品的产品和基础架构。这是一个去中心化自治生态系统，来自DeFi 的项目方和人员可以聚集在一起，协作并构建我们空间所需的产品。DAO 中的所有权共享将使开发者能够采取一样的激励措施，而去中心化治理可以确保这些激励措施对所有各方保持公平。这个想法会带来较少竞争的以及更多的合作。
● Badger 开发者
● Badger 专属运营团队
● $Badger 治理代币一开始的公平分发
Badger社区成员可以向DAO提出新的产品构想，通过视频将提案呈现给社群的所有人，如果提案通过这些阶段，进行正式投票以得到批准，则最终采纳提案。一旦获得批准，Badger DAO 营运团队将与他们合作进行开发,资助和营销。当然，这样做的目的不是让单一社群成员提出提案，而是希望许多贡献者聚集在一起创造我们所能做到最好的产品。
2）Badger DAO 第一款产品Sett介绍
首先，为什么叫Sett？Badger 通过挖隧道和山洞并用草和树叶铺垫来安家。badger的家叫做SETT。Sett 是如此坚固且具有保护性，以至于它们已经有数百年的历史了，而且历久不衰。正是我们想为加密货币持有人所做的。
Badger是一个DAO，用于创建以比特币为中心的产品，重要的是，当$Badger 发行时，必须有一个实际的产品来管理。除了管理Sett之外，Sett将是人们赚取Badger 的唯一途径。
Setts 是专注于代币化比特币资产的自动DeFi 聚合器。受Yearn.Finance Vault 的启发并以其为基础，用户存入资产以赚取收益，然后我们的智能合约将这些资产用于执行DeFi 协议中的各种策略。通过这种方式，用户可以优化自己从仓位中获得的收益，而不必进行所有繁重的工作（多次交易、昂贵手续费等）
在启动后的几周内，在我们的Setts 中存款的任何人都将获得收益以及$Badger。用户在Sett中投入的时间越长，他们获得的$Badger 奖励的乘数就会增加（即1x、2x、3x）。
用户可以随时提取资产，提取时需支付0.5％ 的费用，并从产生的利润中额外收取4.5％ 的费用，以支付交易费用。
启动的5 个Setts 分别为：
● Curve_sbtc_lp tokens: 复利策略
● Curve_renbtc_lp tokens: 复利策略
● Curve_tbtc_lp tokens: 复利策略
● Badger <> wBTC Uniswap LP: 复利策略
● Badger: 质押$Badger，赚取$Badger
这只是Setts 的开始。随着策略的发展和社区的团结，我们希望有更多创新的Sett 进入市场。
● Rebase 弹性供应机制管理以及优化
3）Badger DAO 第二个产品Digg 介绍
该产品的目标是消除对中心化机构保管我们比特币的需求，不再依赖代币智能合约中的弹性参数来维持钉住汇率。每天同一时间，系统都会调用预言机所提供的比特币美元价格，如果需要增加供应量（ Digg 高于BTC ），则应该会推动Digg 的卖压，因为持有人现在拥有钱包中的Digg 数量更多。反之亦然。
$Digg 代币将在$BADGER 分发的中途启动。与Badger 相似，它将有一个独立的流动性启动，用户将在我们的Setts 中质押，而Badger DAO 的代币持有人将对该协议拥有完全控制权。Badger DAO 还将控制流动性挖矿期间未分配的$DIGG 剩余供应的50％，进一步推动社区所有权。
当 Staking BADGER 用户收到 bBADGER 代币时，它是一种可组合的流动性挖矿代币。此外，在bBADGER中还提供了staking奖励，使staking奖励自动复合。这应该会鼓励对代币进行更大程度的锁定，因为不需要抵押gas，但需要解除抵押。事实上，自从 DAO 通过了让 bBadger 自动复合的决定以来，BADGER 的锁定率已经超过 90%。
目前，Badger DAO 团队正致力于通过将 bBADGER 代币集成为其他 DeFi 协议的抵押类型来为 bBADGER 代币添加实用程序。这将允许用户在 UMA 上铸造稳定币并获得额外收益。它还看到代币被添加到 CREAM 平台，它将允许用户使用 bBADGER 作为抵押品借入资产。这有效地允许投机者利用杠杆做多/做空 bBADGER。
还有一项提议是在 Sushi 平台上为 CLAWS 创建流动性池，并为 SLP 代币创建额外的 Sett Vaults，这些代币将被创建用作稳定币的抵押品。
目前基本上所有与 bBADGER 相关的建议都是在收益之上增加收益的方法。目的是利用 bBADGER 的可组合性来创建具有多种收入来源的被动收入货币机器。
虽然 CLAWS 被一些人描述为稳定币，但它本质上是一种“收益美元”而不是稳定币。从本质上讲，收益美元是一种有到期日的抵押资产。一旦收益美元到期，它可以在 UMA 协议上以价值 1 美元的抵押品赎回。在到期之前，市场决定资产的价格——但通常随着到期日的临近，它应该接近 1 美元。
您会喜欢将您的 CLAWS 投入到这个新的收益美元中。图片来自 Badger DAO 博客。像 CLAWS 这样的收益美元是抵押资产。也就是说，当用户以设定的贷款价值比较提供一些抵押品时，它们就会被铸造出来。就 CLAWS 而言，有两种抵押品类型可用于铸造代币——bBadger 和 wBTC/ETH SLP 代币。这将是获取 CLAWS 代币的主要方法，尽管它们也可以在公开市场上购买。但是，如果在公开市场上购买 CLAWS，投机者将需要小心，随着接近到期，代币将接近 1 美元。
DeFi 可组合性的奇迹之一是能够使用相同的基础资产获得多种形式的收益——最大化潜在回报。CLAWS 就是这种情况。一旦用户铸造了 CLAWS 代币，他们将能够将他们的 CLAWS 存入 Sushiswap 流动性池并收到 CLAWS-SLP 代币作为回报。然后可以将这些 CLAWS-SLP 代币放在专用的 Badger Sett 金库中以获得额外的奖励（以额外的 UMA、xSushi、bDIGG 和 bBadger 的形式）。
总的来说，CLAWS Sett 金库有近 10 个收入来源——使其本身成为一个多元化的被动收入篮子。最终，CLAWS Sett 金库将通过提供具有多个收益流的稳定资产来改变流动性挖矿游戏。
Badger DAO 的开发
因此，我们与dOrg合作，该公司致力于与加密项目合作推出产品。我们共同建立了Badger 和Digg 的基础结构。代币智能合约、DAO、流动性采矿等基础设施，所有部分与智能锁之间的可组合性。
dOrg 是一个开发团队，致力于构建自定义DAO ， DeFi 产品和Web3 工具。他们与Balancer 、The Graph、 DeversiFi 和DAOstack 等行业领先的项目合作。
直到现在，创始团人出资设计和开发等一切。这包括第三方审核（与Zokyo 合作）。展望未来，Albert Castellana 和Alberto Cevallos 将在Badger 中担任顾问角色，而Chris Spadafora 和Ameer Rosic 将成为运营团队的一部分。Chris 将在团队中其他人的支持下担任首席运营长。随着运营团队扩大内部资源，dOrg 将在短期内帮助支持技术基础架构。
这是对所有希望与Badger DAO 一起全职或兼职工作的人员的呼吁。迫切需要开发人员，社群经营者和内容创建者。
三、Badger Finance 运行机制
根据 Badger Finance 公开资料 显示，该项目主要由以下五个组成成分组成：
代币分发：大部分 BADGER 和 DIGG 初始将通过空投分发给积极参与比特币 DeFi 和社区治理的用户、DAO 早期贡献者以及作为 Sett 质押的奖励；
Assistant：项目背后支撑服务，包括预言机、优化策略收益的 Keeper 以及系统监视器；（system monitor），如 Badger Tree、Digg 预言机、Digg Rebaser （供应量再调整机制）、Sett Keeper 等。
Badger DAO 基于 DAO 解决方案提供商 Aragon 的 Company Template 构建，代币 BADGER 可用来通过提案、投票来参与财务和组织决策的治理。具体来说，BadgerDAO 在治理聚合平台 Snapshot 进行决策治理，一旦作出决策后，然后通过 Aragon 上链生效这些治理决策。
目前，Badger DAO 目前有 5 个核心聚合器 Badger Sett Vault，分别为 Badger/WBTC Uniswap LP、Badger Pool、sBTC Curve Pool LP、renBTC Curve Pool LP 和 tBTC Curve Pool LP，以及一个针对合作伙伴策略的 SuperSet Vault，为 Harvest : renbtcCRV Curve LP。
1）Badger Sett Vault 产品
费用方面，核心 Badger Sett Vault 中，在项目启动后为期 8 周的流动性挖矿活动中，提款手续费为 0.5％，绩效费用为 20%（其中 50% 将分配给策略执行者），之后将取消提款手续费，届时还将增加 2% 的管理费，绩效费用保持不变。不过，Badger Sett 和 Badge/wBTC Sett 无需支付费用。
针对合作伙伴策略的 SuperSet Vault 的费用分为合作伙伴费用和 Badger Super Sett 费用，其中，Badger Super Sett 费用为 0.5% 的提款费用、FARM 收益的 20%，没有绩效费用。
弄清楚 DIGG 代币奖励机制非常重要，这不仅仅是因为该奖励直接和参与者的收益切实相关，更重要的是，在以太坊区块链上锚定比特币价格是 Badger DAO 的核心目标，也是其建立社区的初衷，而该锚定机制是基于 DIGG 的奖励机制来维持的，也就是说，DIGG 奖励机制和 Badger DAO 最终是否能为以太坊生态带来价值稳定币的映射比特币密切相关，因此，该机制的成败将直接决定 Badger DAO 这个项目是否有价值。
值得注意的是，虽然 Badger DAO 将实行双代币奖励机制，但只有新的 DIGG 代币奖励会根据 DIGG 与比特币的相对价格变化实行动态变化，而原来的 Badger 代币奖励将维持不变，即无论 DIGG 价格如何波动，分发给所有 Setts 的奖励代币 Badger 都保持不变。
Badger DAO 目前已上线社区奖励提案BIP 22向社区成员征集意见，就 DIGG 代币的奖励分配进行投票和达成共识。该机制试图尝试基于 DIGG 与比特币价格的实际锚定情况，向多个 Setts 分配不同比例的 DIGG 代币奖励，以稳定维持 DIGG 锚定比特币的目标价格。
在 DIGG 在启动时，将引入 3 个新的 Sett，其中，2 个是 DIGG LP 和一个单资产 DIGG 质押 Sett，我们将这 3 个 Sett 统称为 DIGG Setts，而原来就存在的 Badger Setts 则属于非 DIGG Setts。
根据该提案，系统将根据 DIGG 相对于比特币价格变化的实际情况，调整 DIGG 代币奖励在「DIGG Setts」和「非 DIGG Setts」中的百分比比例，从而刺激 DIGG 的价格重新与比特币价格锚定。
以下表格详细列出了基于 DIGG 的价格变化如何动态分配 DIGG 奖励：
当 DIGG 价格处于正常锚定水平时，也就是此时 DIGG 价格等于 BTC 价格，此时，DIGG Setts 和 Badger Setts 各自分配 DIGG 总释放奖励的一半。
如果 DIGG 的价格为 BTC 价格的 80％或更低，则 DIGG 所有释放量全都分配给 DIGG Setts。
如果 DIGG 的价格等于或高于 BTC 价格的 130％，则 DIGG 释放量的 70％分配给 Badger Setts，30％分配给 DIGG Setts。
1，当 DIGG 的价格低于锚定价格比特币价格时，会将 DIGG 所有释放量全都分配给 DIGG Setts，这些奖励会激励 DIGG 持有人提供流动性成为 LP，并使用这些 LP 进行质押。DIGG Setts 的 APY 越高，DIGG 需求就越高，从而保持其价格尽可能锚定比特币的价格。
2，这种机制也会激励将Badger Setts 用户纳入，因为 DIGG 可使这些用户获得更多奖励，因此他们也会支持 DIGG 的价格。
3，当 DIGG 的价格高于锚定的比特币价格，系统会释放更大比例的 DIGG 给 Badger Setts，比如，如果 DIGG 的价格等于或高于 BTC 价格的 130％，则 DIGG 释放量的 70％分配给 Badger Setts，30％分配给 DIGG Setts。这将激励 DIGG LP 和 Staker 降低 DIGG 的价格，以获得更大比例的 DIGG 奖励。
BADGER 代币总供应量与比特币一致，为 2100 万枚，55% 的代币将通过 Honey Badger Hunt 空投活动、流动性挖矿活动、Gitcoin 资助空投等活动分发给参与 DeFi 或社区治理的用户，35% 将分配给 DAO 库存，另外 10% 将分配给团队。
Honey Badger Hunt 空投活动：空投活动在项目启动时面向 20 来个不同的社区、协议和项目空投了 BADGER 供应量的 10％（210 万枚），空投对象包括资助过 Gitcoin 的地址、参与过 SUSHI、YAM、YFI 和 1Hive 治理，在借贷平台 Compound、Aave 和 Maker 上使用 wBTC，去中心化自治组织 MetaCartel DAO 成员，铸造过 wBTC、renBTC 和 sBTC，合规 DAO 项目 The LAO 成员，在 Curve.Fi 的 sBTC 和 renBTC 资金池上存储过资金，在 Balancer 的 wBTC/ETH 资金池上提供过流动性的地址等。无人认领的奖励将迁移到一个新的池由社区决定未来的空投对象。另外，还有 BADGER 供应量的 5％会分配给在项目启动之前为 Badger DAO 提供过反馈、建议、指导和运营支持的社区成员，这些奖励中的 30％会在项目发布时分发，其余 70％在将在接下来的 6 个月中逐月分发。
流动性挖矿活动：项目启动 8 周内，在 Sett 产品中通过存款进行流动性挖矿活动的用户将获得共 483 万枚 BADGER 代币（总供应量的 23%），用户得到奖励将与质押资金和质押时长有关。
开发者挖矿活动：开发产品和 Sett Vault 策略的开发人员将获得 315 万枚 BADGER，约占代币总供应量的 15%。
DAO 库存（DAO treasury）：735 万枚 BADGER 在流动性挖矿计划启动后锁定 30 天，之后将由社区决定用处。
团队：10% 的代币（210 万枚）将分配给团队，具体将每月线性释放，为期一年。
DIGG 总供应量为 6250 枚，55% 的代币将通过空投、流动性挖矿分发给用户，40% 将分配给 DAO 库存，另外 10% 将分配给团队。
DAO 库存：2500 枚 DIGG 将供社区决定用处，不过在启动流动性挖矿后将锁定 30 日，以防止恶意操作。
流动性挖矿：根据 Badger DAO 10 月份发布的公告，DIGG 流动性挖矿活动将在 BADGER 分发启动后的两周后进行，也将持续 8 周。在 BADGER 和 DIGG 流动性挖矿活动同时进行的情况下，用户可在 Sett 产品中同时挖矿 BADGER 和 DIGG 两种代币。
空投：15% 的代币（937.5 枚）将用来空投。
团队：5% 的代币（312.50 枚）将分配给团队，每月会线性释放，为期一年。
Badger DAO Badger Finance 的治理通过具有流动治理代币的 Aragon DAO 进行管理。
Badger治理代币($BADGER)和Digg代币($DIGG)最初将通过空投分发给对比特币DeFi 和社区治理表现出积极兴趣的用户、DAO 的早期贡献者，并作为质押奖励参与Sett。
Badger Sett 是一种收益聚合器产品，它利用自动化策略为各种基础资产的用户存款生成收益。它们是非托管的、透明的，用户可以随时提取他们的资产。
现有的大部分 Sett 都基于 Yearn Vaults V1 架构，通过新策略、新费用结构和对系统治理的修改对其进行了扩展。
根据市场上的机会自动产生收益的资本池。保险库通过将gas成本社会化、自动化产生收益和重新平衡过程以及在机会出现时自动转移资金来使用户受益。最终用户也不需要精通所涉及的底层协议或 DeFi，因此 Vaults 代表了一种被动投资策略。
展望未来，我们将使用基于 Yearn V2 的架构开发大部分 Setts & Strategies。最值得注意的是，这将支持每个 Sett 的多个主动策略。
内部设置以产生 BTC 相关资产的有机收益并支持 Badger 代币生态系统。
renbtcCRV Curve LP
sbtcCRV Curve LP
tbtcCRV Curve LP
Uni LP Badger<>wBTC
Uni LP Digg<>wBTC
Sushi LP Badger<>wBTC
Sushi LP Digg<>wBTC
Sushi LP wBTC<>ETH
收获 : renbtcCRV Curve LP
与其他金库不同，您不需要抵押 DIGG。 您只需存款，您就会收到自动复利的 DIGG 奖励。
存入 Badger 相关的 Uni LP 代币，从特殊的 StakingRewards 合约中接收 Badger，类似于 StrategyBadgerRewards。将获得的Badger的50%回收回底层 LP 中，并通过 BadgerTree 分配其余部分。
20% 绩效费（50% 给策略师）
在以太坊链上持有 BADGER或 DIGG的BADGER、DIGG 和 Uniswap LP 设置不收取任何费用。所有 BSC 设置都收取所有标准费用。
Sushiswap LP setts 都收取收获和质押的 SUSHI 的 20% 作为绩效费。那些包含 BADGER 或 DIGG 代币的代币没有提现费用。WBTC/ETH 有标准的 0.5% 提款费。
在 Harvest.finance Super Sett 中：Harvest 收取 30% 的绩效费以换取发行的 FARM 代币。Badger为您收割这些，并收取 FARM 的20%作为绩效费。请注意，BADGER无法控制 Harvest 绩效费用和 FARM APY，这些可能会发生变化。取款费用适用。
Badger Finance DAO使用以下Aragon应用程序。
DAO的初始情况值得注意的是，有大量初始供应的治理代币被铸造出来，这些代币被锁定并随着时间的推移进行分配。在Aragon DAO中，分配治理的 "典型 “方式是在参与者加入时为其铸造新的代币进入系统。
DIGG目前与1BTC挂钩，并使用一个定制的oracle来确定供应量的必要变化。目前正在调查其他oracle解决方案，作为可行的替代方案。如果DIGG的价格高于1.05 BTC，DIGG的供应就会增加。这被称为正向回溯。如果DIGG的价格低于0.95 BTC，DIGG的供应就会减少。这就是所谓的负回调。如果DIGG价格在0.95和1.05 BTC之间，DIGG不会回调。每个DIGG持有者在每次回调时都会得到相同的供应增加或减少。然而，这种增加或减少被随后的价格增加或减少所抵消。
最初，一个中心化式oracle，在链上由Gnosis safe代表，向market Median Oracle提供数据。这个中心化的oracle的可信操作者将计算Digg相对于BTC在链外的价格，并提交这一数据。
除了marketMedianOracle之外，cpiMedianOracle在理解Digg的市场价值方面也发挥了作用。这个Oracle在Ampleforth系统中被用来跟踪消费价格指数，以了解美元在一段时间内的相对购买力。在Digg，由于BTC是挂钩的，而不是2019年的美元，CPI Oracle实际上没有被使用。与其修改经过审计的Ampleforth代码，不如通过让CPI Oracle总是返回 "1 "来 "禁用 "这一功能。
BADGER 的很大一部分将分发给通过 DAO 参与表现出对 DeFi 或社区治理中的比特币的热情的用户。
Honey Badger Hunt - badger总供应量的 10% (2,100,000)
有 24 小时的宽限期，可以要求全额。
再过 5 天后，所有奖励都已迁移。
随着治理事项BIP 14在论坛的通过和snapshot投票，15%的空投部分（特殊的MEME NFT空投少约0.5%）将按照以下参数进行分配：
· 获得的badger总奖励 (55%)
· Badger 抵押代币随时间推移 (10%)
流动性挖掘和 Sett 奖励
Sett 的参与者可以质押他们包装的代币以获得额外的 BADGER，作为早期参与收益聚合服务的激励。
Sett 中的每个参与者都可以将他们包裹的代币放入 Badger Geyser 以获得额外的 BADGER 奖励。 他们获得的奖励金额将根据资产抵押时间的乘数增加。 Digg奖励也将分发
最多 8 周抵押的奖励比例线性增加（1 倍到 3 倍）
流动性供应奖励将通过相同的 Sett Rewards 计划提供给 wbtc<>badger Uni LP 代币持有者。 将您的 LP 代币添加到适当的 Sett，并获得 BADGER 奖励。 该策略将自动将代币抵押到 Badger Meta-Sett 中，以自动复合 Badger 奖励并将一部分分配回您的 LP 位置。
可索取的价值是按照DAO决定的时间表更新的。默认的是每4小时一次。DAO选出一个或多个 "RootUpdater "账户，作为更新Merkle根的权限。
在监护人通过批准交易对根部进行 "签字 “之前，new roots不会变得活跃。
Badger : Building Products to Bring Bitcoin to DeFi
DAOrayaki DAO Research Grant：
Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71
Voting Result：DAO Committee /7 Yes
Grant Amount：200 USDC
Category: (Bagder, Sett, Rebase, Ampl, Defi）
Launch time: 15 Sep 2020
Badger DAO (BADGER)
Token：Badger (governance token, ERC20)
DIGG (rebase mechanism token, ERC20)
Coin Value：Badger: $15.1328, DIGG: $21,833.00
Mission and Vision:
Our goal with Badger DAO is to create the most developer-friendly environment possible where they can build the products they want, have the appropriate incentives to do so, and maintain shared ownership. All while focused on accelerating Bitcoin in DeFi.
Badger is a project to bring BTC to the ETH Defi ecosystem. BadgerDAO aims to be a community that brings together all the best developers to accelerate various products for BTC in Defi applications.
Badger Finance's core product is the Sett Vault, which allows tokenized bitcoins to earn revenue automatically; Badger DAO, the decentralized organization focused on bringing bitcoin to Defi, has officially launched in December and has opened the distribution of airdrop governance tokens BADGER and liquidity mining activities.
Built on DAO solution provider Aragon's Company Template, the Badger DAO token BADGER can be used to participate in the governance of financial and organizational decisions through proposals and votes. Specifically, BadgerDAO governs decisions in Snapshot, a governance aggregation platform, and once decisions are made, these governance decisions are then validated through the Aragon uplink.
DIGG's goal, using the Rebase mechanism, is to anchor the price of a specific asset without the need for a third party to guarantee the collateralized asset's value and arrive at the cost of the investment in a more decentralized way.
Scenario 1: If the time-weighted average price (TWAP) of $ Digg > Bitcoin, the amount of $Digg in circulation will be automatically increased in equal proportion to suppress the price increase by increasing the supply, which we call "positive base."
Scenario 2: If the time-weighted average price of $Digg (TWAP) < Bitcoin, the amount of $Digg in circulation will automatically decrease in equal proportion, pushing up the price by reducing the supply, which we call "negative base."
In addition to the Rebase mechanism, BadgerDAO also adjusts the liquidity mining reward according to whether $Digg is at a premium or a discount, thus inducing the market to converge the price of $Digg to the cost of Bitcoin.
There are currently three product lines.
1. Badger Dao: power tokens, the possession of which enables participation in basically everything in Badger Dao, and its participation in all Defi as an integrated plan.
2. Setts Dao: Setts functions as an automated Defi aggregator focusing on tokenized Bitcoin assets. The longer a user pledges in Setts, the greater the multiplier reward.
3. Digg: It is the elastic coin set according to the Ampl model, but the anchor target is the price of BTC. This point is good to lift the possibility that other flexible coins are easily manipulated by large investors; (Rebase every 24 hours, 40% of Digg will flow to Badger Dao's vault).
In DIGG at startup, three new Setts will be introduced, of which 2 are DIGG LP and a single asset DIGG Pledge Sett, which we will collectively call DIGG Setts, while the pre-existing Badger Setts are non- DIGG Setts.
The system will adjust the percentage ratio of DIGG token rewards in "DIGG Setts" and "Non- DIGG Setts" based on the actual change of DIGG relative to the bitcoin price, thus stimulating the price of DIGG to be anchored to the bitcoin price again.
Chris Spadafora is the operations lead. He’s a serial entrepreneur who has founded a number of companies over the years. His latest project prior to Badger Dao was Alwayshodl.com. He is also a partner at Angelrock, a company that provides strategic consulting for long-term crypto holdings.
Ameer Rosic is also part of the operations team at Badger DAO. Another serial entrepreneur he is the founder of Blockgeeks.com. He is also an integral part of Dollarcake, a browser extension that can be used to monetize social media networks.
Albert Castellana is the co-founder and CEO at Stakehound.com and serves as the product advisor for Badger DAO.
Alberto Cevallos is the technical advisor for the project. He also advises Travala and is the founder of Metl, a company engaged in creating the infrastructure for the internet of money.
For many of us it’s been a long 2.5 year bear market, especially for those new to the space. Those focused on building during this time are starting to see the fruits (no pun intended) of their labour. Many of the things that we all believed would take center stage are now what everyone is excited about and DeFi is at the top of that list.
The total value locked in DeFi protocols has increased from approximately $650M on January 1st 2020 to $8.5B today. Projects like Uniswap are now dominant players frequently eclipsing large centralized exchanges in daily volume. Aggregators like YFI have exploded onto the scene and other leading lending/borrowing protocols like Compound, Synthetix and Aave have built 2 year+ battle tested protocols managing billions of dollars. It’s safe to say DeFi is here to stay.
That doesn’t come without the “get rich quick” attempts popping up as well. New food coins with anonymous founders like pasta, noodle, hotdog, kimchi etc, are launching unaudited forked codes from popular DeFi protocols and garnering hundreds of millions of dollars in the span of hours. These projects for the most part have no intrinsic value or purpose and will inevitably fade into irrelevance.
There always is some good to come with the bad. Projects like Yearn.finance have sparked a shift from VC or investor-backed projects with centralized control to a “fair token launch” with the community owning control of the project from the onset.
Another major progression in the last year has been the demand for Bitcoin to be used as collateral on other blockchains, especially Ethereum.
Bitcoin is the soundest money ever invented. Many would argue the best collateral the world has seen. Today there are limited ways to use your BTC for decentralized finance, especially on the Bitcoin network. This is why an increasing amount of Bitcoin holders are wrapping their BTC on Ethereum to use finance protocols for earning interest, borrowing against their position etc.
The problem is the infrastructure, products and protocols for enabling BTC on other blockchains are very immature. Most BTC bridges have centralized parties we must trust to custody and mint the equivalent BTC on ETH. There are only a couple large liquidity pools for trading synthetic BTC. Although many of the lending/borrowing protocols have enabled these wrapped assets as collateral, there are only a few of these trusted protocols in the market right now.
With the maturity of smart contract infrastructure, the rise of DeFi, demand for fair launches, the potential of BTC in DeFi and the desire of community ownership of products, we decided to create the Badger DAO.
What is the Badger DAO
Badger is a decentralized autonomous organization (DAO) with a single purpose: build the products and infrastructure necessary to accelerate Bitcoin as collateral across other blockchains.
It’s meant to be an ecosystem DAO where projects and people from across DeFi can come together to collaborate and build the products our space needs. Shared ownership in the DAO will allow builders to have aligned incentives while decentralized governance can ensure those incentives remain fair to all parties. The idea is less competing and more collaborating.
That’s why it’s important that it starts as a community-led initiative from day one. Any decisions are made through a governed vote including what, how, and when Badger DAO products are created. Equally important is ensuring there is a fair distribution of $BADGER to give all participants the opportunity to get involved and benefit.
This forms the pillars of what ensures Badger always remains community first, fair and transparent.
- Badger Builders
- Community created products
- Dedicated Badger operations team
- Fairly initial distribution of $Badger Tokens for governance
- All code open-sourced
Badger community members can propose new product ideas to the DAO, pitch the proposal to the greater community over video and finally take the proposal if it passes these stages to an official vote for approval. Once approved the Badger DAO ops team will collaborate with them to build it, fund it and market it. Of course the intention is that it’s not a singular community member proposing these but instead many contributors coming together to create the best products we can.
Badger builders are open and willing to collaborate with anyone wanting to build with together. It would be amazing to see leading developers and DeFi protocols participate in this program.
This structure is meant to give everyone an opportunity to build what’s needed regardless if they are an individual developer, blockchain company, dev shop or just a person with an idea. Anything launched by the Badger community should be inherently fair, transparent and rewarding all those involved in bringing the product to life. This includes shared fees, token rewards etc.
We believe that together the community can build the products that our industry needs more effectively, compared to single centralized entities building fragmented solutions.
How is Badger Token Going to Launch?
*DISCLAIMER: BADGER IS STRICTLY A TOKEN TO GOVERN THE DAO AND ITS ACTIVITIES. IT HAS NO MONETARY VALUE. *
Badger will follow in YFI’s footsteps with a fair liquidity mining launch. We are attempting to innovate how fair launches are actually conducted.
- Zero individual or centralized control of smart contracts upon launch.
- Fixed supply with mint function being burned at launch.
- All smart contracts and systems audited pre-launch.
- No surprise launch date and list of assets for staking. The entire community will know weeks in advance all these details.
- No investors or capital raised.
- Team is publicly known and involved in ongoing operations.
- Time-locked founder rewards + whitelist functionality to enable performance based unlocking of rewards voted by the community.
- No seeding of liquidity on exchanges by Badger.
- Leaving control and decisions to the community of how to best distribute and utilize a significant portion of token supply.
Unlike the trend of products launching without audits and anonymous founders, the founding team has ensured a 3rd party firm (Zokyo)has audited any and all contracts for Badger and Digg before launch. We as founders are also not hiding and are going to be very public about our involvement. We aren’t here to launch and leave but instead intend to lead the operations team and stick around for the long haul.
Shortly we will release the audit report well before launch and over the next week we will share all the details of the stakeable assets.
We believe incentivization is critical for teams to ensure they’re committed to doing everything they can over the long term to make a project successful. With that, we’ve decided to have 10% of the total supply, (2,100,000 $BADGER) allocated for founder rewards. These tokens won’t be distributed all at once. Instead, as Badger is mined by the community, a percentage of each Badger will be sent to the founder rewards wallet (of which the address will be made public). The remaining 90% is for the community and no one else.
As mentioned above, we aren’t here to launch and leave. The founder rewards wallet will have a 1 year time lock on it with the ability to participate in voting. This wallet will release tokens weekly to the founders evenly across 12 months.
There will be a transparency report released shortly with all the reference code so the community can confirm authenticity of our claims, including time locks, private key ownership, token distribution, etc.
Introducing Badger DAO’s 1st Product, Sett
Firstly, why the name Sett? Badgers make their homes by digging tunnels and caves and use grass and leaves for bedding. A badger’s home is called a SETT.
Setts are so strong and protective that they can be centuries old and are used by many generations of badgers. Exactly what we’re doing for crypto holders.
Badger is a DAO that creates Bitcoin focused products, and it’s important that when $Badger distribution occurs there is an actual product to govern. Beyond governing it, Sett will be the only way for people to earn $Badger.
Sett is an automated DeFi aggregator focused on tokenized BTC assets. Inspired by and based off the Yearn.Finance vaults, users deposit assets to earn a yield, our smart contracts then put those assets to work executing a variety of strategies across DeFi protocols. Through this, users optimize the yield they get out of their positions without having to do all the heavy lifting (multiple transactions, gas fees etc.).
To review our Sett code please go here
At launch for a limited number of weeks, anyone that deposits in our Setts will receive the appropriate yield + $Badger. The longer users stake in the Sett the increased multiplier of $Badger rewards they will receive (ie. 1x, 2x, 3x).
Users can withdraw their assets at anytime, upon withdrawal there is a 0.5% fee and an additional 4.5% fee from the profit generated to cover gas and transaction costs.
The 5 Setts at launch are;
- Curve_sbtc_lp tokens: Compounding strategy
- Curve_renbtc_lp tokens: Compounding strategy
- Curve_tbtc_lp tokens: Compounding strategy
- Badger <> wBTC Uniswap LP: Compounding Strategy
- Badger: Stake Badger and earn Badger
This is just the beginning for Sett. As strategies develop and the community comes together we hope for additional innovative Setts to come to the market.
- Native BTC deposits
- Single asset vaults with multiple strategies
- Additional compounding strategies
- Aggregator to aggregator to help preserve value in their GOV token
- Impermanent loss mitigators
- BTC neutral strategies (deposit BTC and prevent against price swings)
- Rebasing management and optimization
Introducing Badger DAO’s 2nd Product, Digg
It’s important to set precedence on how products should be developed and launched. With that, in conjunction with the $BADGER token, there will be the launch of its second community owned product, Digg.
Digg is a non-custodial synthetic Bitcoin on Ethereum. 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.
The goal of this product is to remove the need for centralized parties to custody our BTC and instead rely on the elastic parameters in the token smart contracts to maintain the peg. Every day at the same time the system calls a price oracle to provide the USD value of Bitcoin and if there is a need to increase the supply meaning (Digg is higher than BTC) it should drive sell pressure on the token since holders now have a higher quantity of the Digg in their wallet. The same works on the inverse in driving demand.
The parameters of Digg were created this way to encourage changes. We believe there is lots that can be done to the protocol to bring it closer to peg like rebasing every block or creating additional incentives to drive buy and sell pressure. After launch the community will control this protocol and we hope to see these changes put forward.
The Digg token will launch midway through the $BADGER distribution. Similar to Badger, it will have an independent liquidity launch where users will stake in our Setts and the Badger DAO token holders will have complete control of the protocol. The Badger DAO will also control the remaining 50% of the $DIGG supply not distributed during liquidity mining, further driving community ownership.
When staking BADGER users receive bBADGER tokens which are a composable yield farming token. In addition, staking rewards are also delivered in bBADGER, making the rewards for staking auto-compounding. This should encourage even greater lockup for the token since no gas is required to stake, but is required to unstake. Indeed, BADGER is seeing a lockup rate in excess of 90% since the decision to make bBadger auto-compounding was passed by the DAO.
bBadger is a composable DeFi asset. Image via Badger DAO blog.
Currently the Badger DAO team is working on adding utility to bBADGER tokens by integrating them as a collateral type for other DeFi protocols. This will allow users to mint stablecoins on UMA and earn additional yield. It’s also seen the token added to the CREAM platform, where it will allow users to borrow assets using bBADGER as collateral. This effectively allows speculators to long/short bBADGER with leverage.
There has also been a proposal to create liquidity pools for CLAWS on the Sushi platform, and create additional Sett Vaults for SLP tokens that will be created to use as collateral for stablecoins.
Basically all of the proposals being made in connection with bBADGER at this time are ways to add yield on top of yield. The intention is using the composability of bBADGER to create passive income money machines with a wide variety of income sources.
While CLAWS has been described by some as a stablecoin, it is essentially a “yield dollar” rather than a stablecoin. Essentially, a yield dollar is a collateralized asset with an expiration date. Once the yield dollar expires, it can be redeemed on the UMA protocol for $1 worth of its collateral. Until expiration, the market determines the price of the asset — but generally it should approach $1 as expiration nears.
Yield dollars like CLAWS are collateralized assets. That is, they are minted when a user puts up some collateral at a set loan-to-value ratio. In the case of CLAWS, there are two collateral types of collateral that can be used to mint tokens — bBadger and wBTC/ETH SLP tokens. This will be the primary method for obtaining CLAWS tokens, although they can also be purchased on the open market. Speculators will need to take care if purchasing CLAWS on the open market however, bearing in mind that the token will approach $1 as it gets closer to expiration.
One of the wonders of DeFi composability is the ability to earn multiple forms of yield with the same base assets — maximizing your potential returns. This is the case with CLAWS. Once a user mints CLAWS tokens, they will be able to deposit their CLAWS into a Sushiswap Liquidity Pool and receive CLAWS-SLP tokens in return. These CLAWS-SLP tokens can then be staked in a dedicated Badger Sett vault to earn additional rewards (in the form of additional UMA, xSushi, bDIGG, and bBadger).
In total, CLAWS Sett vaults have nearly 10 sources of income — making it a diversified basket of passive incomes unto itself. Ultimately CLAWS Sett vaults are going to change the yield farming game by providing a stable asset with multiple yield streams.
Who is Behind Badger DAO
4 long term cryptocurrency investors and friends came together earlier this year with an idea to launch a truly community-owned ecosystem DAO that can push Bitcoin as collateral forward.
We’re strong believers in the future of DAOs for shared ownership and the value that can be created when an ecosystem collaborates to build vs compete.
With that, we partnered with dOrg, a DAO itself, that’s dedicated to working with crypto projects to launch products. Together we built the foundation of Badger and Digg. The token smart contracts, DAO, liquidity mining staking infrastructure, composeability between all parts and smart locks.
In building our goal, we leveraged battle tested code for the foundation while adding minor changes. However, they enabled us to define the specific parameters that made everything a cohesive architecture. That includes the parameters that guarantee and enforce fairness at a code level.
dOrg is a development collective that builds custom DAOs, DeFi products, and web3 tooling. They’ve worked with industry-leading projects like Balancer, The Graph, DeversiFi, and DAOstack.
Up until this point the founders funded, designed and developed everything. This includes 3rd party audits (with Zokyo). Moving forward Albert Castellana and Alberto Cevallos will be taking advisory roles within Badger while Chris Spadafora and Ameer Rosic will be a part of the operations team. Chris will act as the lead operator with the support of others on the team. dOrg will help support the technical infrastructure in the near term as the operations team expands its internal resources.
We intentionally set it up this way. For any DAO to be successful, it needs ongoing operational support. With Badger being community-driven we believe that community members should be the ones heavily involved in the operations with us.
This is a call to all those that would like to work with the Badger DAO on a full time or part time basis. There is an immediate need for developers, community leaders and content creators.
The DIGG release mechanism
It is essential to clarify the DIGG token reward mechanism, not only because the reward is directly related to the participants' revenue, but more importantly, anchoring the bitcoin price on the ethereum blockchain is the core goal of the Badger DAO and the original purpose of building the community. This anchoring mechanism is based on the DIGG reward mechanism to maintain, that is, DIGG. That is to say; the DIGG reward mechanism is closely related to whether Badger DAO will eventually bring the value of stable coins mapping bitcoin for the ethereum ecology. Therefore, the success or failure of this mechanism will directly determine whether Badger DAO is a worthwhile project.
It is worth noting that while Badger DAO will have a dual token reward mechanism, only the new DIGG token reward will change dynamically based on the relative price changes of DIGG and Bitcoin. In contrast, the original Badger token reward will remain the same, i.e., regardless of the fluctuation of DIGG price, the reward token distributed to all Setts Badger will stay the same irrespective of the instability in DIGG price.
Badger DAO is currently live with the community reward proposal BIP 22 to solicit input from community members to vote and reach a consensus on the distribution of rewards for DIGG tokens. The mechanism attempts to attempt to allocate different percentages of DIGG token rewards to multiple Setts based on the actual anchoring of DIGG to the Bitcoin price to maintain the target price of DIGG anchored Bitcoin steadily.
At the launch of DIGG, three new Setts will be introduced, of which 2 are DIGG LPs and a single asset DIGG Pledge Sett, which we will collectively refer to as the pre-existing Badger Setts are non- DIGG Setts.
According to this proposal, the system will adjust the percentage ratio of DIGG token rewards in "DIGG Setts" and "Non- DIGG Setts" based on the actual change of DIGG relative to bitcoin price, thus stimulating the price of DIGG to be re-anchored to bitcoin price.
The following table details how DIGG rewards are dynamically allocated based on changes in the price of DIGG.
When the DIGG price is at the average anchor level, i.e., when the DIGG price is equal to the BTC price, DIGG Setts and Badger Setts are allocated half of the total DIGG release reward.
If the DIGG price is 80% or less of the BTC price, all DIGG releases are allocated to the DIGG Setts.
If the price of DIGG is equal to or higher than 130% of the BTC price, then 70% of the DIGG releases are allocated to Badger Setts, and 30% are earmarked for DIGG Setts.
This mechanism is set up with the following assumptions.
1, when the price of DIGG is lower than the anchor price bitcoin price, all of the DIGG release volumes will be allocated to DIGG Setts, and these rewards will incentivize DIGG holders to provide liquidity to become LPs and use these LPs for pledging. The higher the APY of DIGG Setts, the higher the DIGG demand will be, thus keeping its price as anchored to the price of Bitcoin as possible.
2, This mechanism will also incentivize the inclusion of Badger Setts users, as DIGG allows these users to receive more rewards, and therefore they will support the price of DIGG.
3, When the price of DIGG is higher than the anchored bitcoin price, the system will release a more significant percentage of DIGG to Badger Setts; for example, if the price of DIGG is equal to or higher than 130% of the BTC price, 70% of the DIGG release will be allocated to Badger Setts and 30% to DIGG This will provide an incentive for DIGG LP and Staker to lower the price of DIGG to receive a more significant percentage of the DIGG reward.
BADGER Token Distribution Model
The total supply of BADGER tokens is in line with Bitcoin at 21 million. 55% of the tokens will be distributed to users participating in Defi or community governance through Honey Badger Hunt airdrops, liquidity mining events, Gitcoin funded airdrops, etc., 35% will be distributed DAO inventory, and another 10% will be allocated to the team.
BADGER Token Distribution Model
Honey Badger Hunt airdrop: The airdrop was a 10% (2.1 million) airdrop of the BADGER supply to 20 different communities, protocols, and projects at launch, including addresses that have funded Gitcoin, participated in SUSHI, YAM, YFI, and 1Hive governance The LAO, a member of the decentralized autonomous organization MetaCartel DAO, which has minted wBTC, renBTC and sBTC, and a member of the compliance DAO project The LAO, which has stored sBTC and renBTC on Curve.Fi's sBTC and sBTC pools. renBTC pools, addresses that have provided liquidity on Balancer's wBTC/ETH pool, etc. Unclaimed rewards will be migrated to a new pool for the community to decide on future airdrops. In addition, 5% of the BADGER supply will be distributed to community members who have provided feedback, advice, guidance, and operational support to Badger DAO before the project's launch. 30% of these rewards will be distributed at the project's launch, and the remaining 70% will be distributed every month over the next six months.
Liquidity Mining Campaign: Within eight weeks of the project launch, users who conduct a liquidity mining campaign by depositing in the Sett product will receive a total of 4.83 million BADGER tokens (23% of the total supply) and will be rewarded concerning the pledged funds and the length of the pledge.
Developer Mining Event: Developers who develop products and Sett Vault strategies will receive 3.15 million BADGER, about 15% of the total supply of tokens.
DAO treasury: 7.35 million BADGER are locked for 30 days after the liquidity mining program starts, after which the community will decide what to do with them.
Teams: 10% of the tokens (2.1 million) will be allocated to groups, which will be released linearly every month for one year.
DIGG Token Allocation Model
The total supply of DIGG is 6,250 tokens, 55% of which will be distributed to users through airdrops and liquidity mining, 40% will be allocated to the DAO inventory, and another 10% will be assigned to the team.
DIGG token distribution model
DAO Inventory: 2,500 DIGG will be available for the community to decide what to do with them but will be locked for 30 days after liquidity mining is initiated to prevent malicious operations.
Liquidity Mining: According to Badger DAO's announcement in October, DIGG liquidity mining activity will occur two weeks after the launch of the BADGER distribution, which will also last eight weeks. In the case of a simultaneous BADGER and DIGG liquidity mining campaign, users can mine both BADGER and DIGG tokens in the Sett product.
Airdrop: 15% of the tokens (937.5 tokens) will be used for the airdrop.
Teams: 5% of the tokens (312.50) will be allocated to groups and released linearly every month for one year.
Badger Finance is a community DAO, focused on bringing Bitcoin to DeFi. The DAO's debut products are Sett, a yield aggregator, and Digg, a BTC-pegged elastic supply currency.
Badger DAO The governance of Badger Finance is managed via an Aragon DAO with a liquid governance token.
Sett The debut yield aggregator product of the DAO, focused on innovating on the best bitcoin-related yield strategies.
Digg A BTC-pegged elastic supply currency, based on the Ampleforth protocol.
Token Distribution The Badger governance token ($BADGER) and the Digg token ($DIGG) will be initially distributed via airdrops for users who have demonstrated an active interest in Bitcoin DeFi and community governance, early contributors to the DAO, and as staking rewards for participation in Sett.
Assistants Traditional backend services to provide necessary updates to the system. These include oracles, keepers, and system monitors.
Badger Sett is a yield aggregator product that leverages automated strategies to generate yield for user deposits of various underlying assets. They are non-custodial, transparent, and users can withdraw their assets at any time.
The bulk of existing Setts are based on the Yearn Vaults V1 architecture, expanding it with new strategies, a new fee structure, and modifications to the governance of the system.
Yearns' documentation captures the premise best:
Capital pools that automatically generate yield based on opportunities present in the market. Vaults benefit users by socializing gas costs, automating the yield generation and rebalancing process, and automatically shifting capital as opportunities arise. End users also do not need to have a proficient knowledge of the underlying protocols involved or DeFi, thus the Vaults represent a passive-investing strategy.
Moving forward, we will be developing a large portion of Setts & Strategies with a Yearn V2 based architecture. Most notably, this will support multiple active strategies per Sett.
Access Control Notes
The active Governance module (currently the Dev Multisig) can elect trusted parties to hold various permissions such as the right to run keeper operations or enter emergency withdrawal mode.
Contract upgradability rights exist for all Setts unless explicitly burned.
There are two Sett systems, one for core Badger strategies, and one for partner strategies.
In-house Setts to generate organic yield on BTC-related assets and support the Badger token ecosystem.
- renbtcCRV Curve LP
- sbtcCRV Curve LP
- tbtcCRV Curve LP
Liquidity for Badger assets on Uniswap and Sushiswap is incentivized.
- Uni LP Badger<>wBTC
- Uni LP Digg<>wBTC
- Sushi LP Badger<>wBTC
- Sushi LP Digg<>wBTC
Sushi LP wBTC<>ETH
These vaults deposit into the vault systems of our partners, leveraging their strategies for organic yield while adding Badger/Digg incentive rewards on top.
- Harvest : renbtcCRV Curve LP
- Yearn: wBTC
- Single Asset
When you deposit $DIGG in our $DIGG only vault, you will receive a token called bDIGG, which is a representation of your share in the pool. This token does NOT rebase and can be used like any other standard erc20 token. Holders of this token will be continuously receiving DIGG rewards to their position via our liquidity mining program while enabling them to use it across DeFi.
Unlike other vaults your DON’T need to stake DIGG. You simply deposit and you’ll be receiving auto compounding DIGG rewards.
Deposit Badger-related Uni LP tokens to receive Badger from a special StakingRewards contract, similar to StrategyBadgerRewards. Recycle 50% of Badger gained back into underlying LP position, and distribute the rest via BadgerTree.
No fees, as this Sett Strategy is focused on providing a service to the Badger ecosystem.
Deposit underlying LP tokens into the StakingRewards contract
Harvest earned badger and convert it into more underlying. Deposit this into StakingRewards.
Withdraw the required number of tokens from StakingRewards.
Exit the StakingRewards contract, sending all underlying to controller. All harvested Badger is sent to RewardsEscrow for distribution.
Standard Sett Fees:
These fees apply on all Setts on all chains except if noted in the exceptions.
- 0.5% Withdrawal Fee
This fee is taken from the total amount withdrawn upon withdraw.
- 20% Performance Fee (50% to strategists)
These fees are taken during harvest and already accounted for in stated ROIs.
- The BADGER, DIGG and Uniswap LP setts holding BADGER or DIGG on the Etheruem chain have no fees. All BSC setts charge all standard fees.
- The Sushiswap LP setts all charge 20% of the harvested and staked SUSHI as a performance fee. Those containing BADGER or DIGG tokens have no withdraw fees. WBTC/ETH has the standard 0.5% withdraw fee.
- In the Harvest.finance Super Sett: Harvest charges a 30% performance fee in exchange for emitted FARM tokens. Badger harvests these for you, and takes 20% of the FARM as a performance fee. Note that badger does not have control over Harvest performance fees and FARM APYs, these are subject to change. Withdraw fees apply.
Here is a view of the address where all Sett fees are sent. Note that this may not represent all fees ever collected as the DAO could decide to transferred funds out to support operations or reinvest.
The Badger DAO is based on the Aragon company template.
The BADGER token is the native governance token for the DAO, granting voting rights over the future direction and use of the treasury.
Badger Finance DAO uses the following Aragon Apps:
Voting: Used to create and participate in votes. Votes can be linked to an action, such as minting BADGER or transferring funds, or be purely informative.
Tokens: Manages the supply and distribution of BADGER.
Finance: Manages the organization's financial assets, including ETH and ERC20s.
Agent: Enables the organization to interact directly with any other smart contract on Ethereum. For example, adding liquidity to a Uniswap or Balancer pool.
Notes on configuration
The initial circumstances of the DAO are noteworthy in that there is a large initial supply of governance tokens minted, which are locked & distributed over time. In Aragon DAOs, the 'canonical' way of distributing governance is to mint new tokens for participants entering the system as they join.
The effect of this initial minting is that during the first days of the DAO it will not be possible to pass actions via the governance process, as a vast majority of the governance weight will be locked. At least Minimum Approval % of tokens must be distributed and used to vote in order for proposals to pass within the system with a relative majority. Proposals will not be able to immediately pass until the Support threshold is able to be used within voting, and is used. This means that every proposal in the initial days of the system must pass via relative majority, and be subject to a 7 day waiting period before the action occurs.
In order to alleviate the duration of this effect, the Minimum Approval threshold has been reduced to 10% (from 20% default)
In the first thirty days, before the remaining 50% of tokens is released from the timelock, it will effectively take 20% of token holders to reach the minimum approval, and 100% to instantly pass a proposal.
What is DIGG
An elastic supply token pegged to the price of Bitcoin and governed by the Badger DAO.
What is Elastic Supply?
For most assets as supply and demand change the price is driven by normal market forces. The supply is a fixed input (that can be changed for different reasons) but is generally held steady and increases or decreases in demand manifests in a decrease or increase in price. Elastic supply tokens (AMPL, YAM, BASED, ESD) are an experiment in changing this relationship and dynamically adjusting the supply as the price changes relative to a target.
What is rebasing?
Rebasing is the mechanism that adjusts the supply of an elastic supply asset to promote price stability
There are generally the same parameters
- Target price (this is taken from an oracle, badger has a custom oracle, looking into other solutions)
- Current price (also taken from an oracle, likely referencing the most liquid dex pools)
- Rebase Delay (minimum amount of time that has to have passed for a rebase to be called)
- Rebase multiplier (What % of current supply should be minted/burned relative to different in current and target price. Hoe many cycles is it targeting to take to reach the intended price?)
DIGG is currently pegged to 1 BTC, and uses a custom oracle to determine the necessary change in supply. Other oracle solutions are currently being investigated as viable alternatives. If DIGG price is above 1.05 BTC, DIGG supply increases. This is known as a positive rebase. If DIGG price is below 0.95 BTC, DIGG supply decreases. This is known as a negative rebase. If DIGG price is between 0.95 and 1.05 BTC, DIGG does not rebase. Every DIGG holder gets the same increase or decrease in supply every rebase. However, this increase or decrease is offset by the subsequent increase or decrease in price.
What is the math behind each rebase?
DIGG does not try to target 1 BTC all at once, instead attempting to do it over 10 rebase periods (while the buffer is set to 10%). To calculate change in supply we need to determine how far from the peg the current price is. This formula is:
Deviation from peg = (Current Price - Target Price) / Target Price
Rebase Amount = Current Supply * (Deviation From Peg/Rebase Multiplier)
New Supply = Current supply + Rebase Amount
Does this mean I gain or lose money every rebase?
No. All approved liquidity pools are in sync with every rebase. Be careful to not add liquidity to pools not explicitly supported by badger as they may not be treated the same. Since all approved pools are automated market makers the price is a function of the relative balances in the pools. As soon as supply of one asset in a pool changes and the other does not the price the pool can sell or buy the assets relative to each other has changed. This means that if supply is increased by 20% in a rebase, price will drop 20% to offset it. Imagine the following scenario. DIGG is at $20,000 (1 BTC) and you hold .1 DIGG. This means your DIGG holdings are $2000. A rebase comes and it's a positive 20% rebase. You now have .12 DIGG but the price will go $16,667 so your DIGG holdings are still worth $20,000!
The Digg Core is based on the Ampleforth system. At a smart contract level, it is composed of an Orchestrator, uFragmentsPolicy, and uFragments.
- Orchestrator: the entry point of the rebase actions, can forward notifications of the rebase to other contracts.
- uFragmentsPolicy (i.e. SupplyPolicy): Consumes data from the Oracles, to determine the market value of Digg token. Has unique permission to inform the Digg token about this.
- uFragments: Core Digg token. Maintains balances / approval data as per ERC20, and modulates it's displayed supply as per Ampleforth mechanics.
The purpose of oracles in the Digg system is to track the market price of Digg relative to Bitcoin, and adjusts the Digg supply to maintain it's peg.
The market median oracle is the ultimately 'source of truth' for this data.
The median oracle is named as such because it can take in multiple sources for the same data, and will report the median of the values as the official value.
The implmentation used is the Ampleforth median oracle
Initially, A centralized oracle, represented on-chain by a Gnosis safe, provides data to the marketMedianOracle. The trusted operators of this centralized oracle will calculate the price of Digg relative to BTC off-chain and submit this data.
New data sources, beyond the centralized oracle, are intended to be added to the market median oracle over time. A Chainlink integration is a possible next step.
In addition to the marketMedianOracle, the cpiMedianOracle plays a role in understanding the market value of Digg. This oracle is used in the Ampleforth system to track the consumer price index in order to understand the relative purchasing power of a USD over time. In Digg, as BTC is the peg rather than a 2019 USD, the CPI Oracle is effectively unused. Rather than modify the audited Ampleforth code, it was considered perferable to 'disable' this functionality by having the CPI oracle always return "1".
A trustless ConstantOracle is deployed and used as a data provider to provide this static information to the cpiMedianOracle.
MarketMedianOracle: On-chain source of truth for DIGG/BTC price.
CpiMedianOracle: Unused in the Digg system, always returning one.
Centralized Oracle: External,trusted service that publishes market data to the MarketMedianOracle via a Gnosis safe.
ConstantOracle: Trustless Oracle that always returns 1 to the CpiMedianOracle.
Centralized Market Oracle Details
The centralized oracle is a Gnosis safe.
The multisig is 1 of N, with keys belonging to trusted participants.
The oracle server has one of the keys, calculates BTC/BADGER Price, and calls pushReport() on the MedianOracle by proposing it through the Gnosis safe. (It is instantly executed because it's 1 of N).
The remaining N-1 keys are used for backup purposes, and to fix incorrect data pushes from the server.
7 Token distribution
A significant portion of BADGER will be distributed to users who have demonstrated through their actions an enthusiasm for Bitcoin in DeFi or community governance through DAO participation.
Honey Badger Hunt - 10% of the Badger Total Supply (2,100,000)
All users who are eligible for the airdrop can claim their BADGER in the badger hunt.
There is a 24 hour grace period where the full amount can be claimed.
Once this period is up, every day 20% less of the reward is claimable.
The unclaimed rewards are migrated to a new pool which can be used in future airdrops as decided by the community.
After 5 additional days, all the rewards have been migrated.
With the passing of governance matter BIP 14 in the forums and snapshot voting, the 15% airdrop portion (less about 0.5% for the special MEME NFT airdrop) will be distributed under the following parameters:
- Total Badger Rewards Earned (55%)
- Badger Earned / Badger Staked Ratio (35%)
- Badger Staked Tokens Over Time (10%)
Liquidity Mining & Sett Rewards
Participants in Sett can stake their wrapped tokens for additional BADGER as an incentive for early participation in the yield aggregation service.
Every participant in a Sett can stake their wrapped tokens into a Badger Geyser for additional BADGER rewards. The amount of rewards they receive will increase according to a multiplier based on the length the assets are staked. Digg rewards will also be distributed
Linear increase in rewards proportion for up to 8 weeks staked (1x to 3x)
Liquidity provision rewards will be provided to wbtc<>badger Uni LP token holders through the same Sett Rewards program. Add your LP tokens to the appropriate Sett, and receive BADGER rewards. This strategy will auto-stake tokens into the Badger Meta-Sett to automatically compound Badger rewards and distribute a portion back top your LP position.
8 Badger Tree
Badger Tree is a central rewards management contract that uses the magic of Merkle trees to distribute rewards from across the system to users. This allows users to realize their gains from all liquidity mining programs, special Sett rewards, and any other rewards programs in the Badger ecosystem in one place at very low cost.
The claimable values are updated on a schedule decided upon by the DAO. The default is every 4 hours. The DAO elects one or more "RootUpdater" accounts that are the permission to update the Merkle root.
How it works
Each Merkle tree uploaded specifies a mapping of each user to their total accumulated rewards, across every token for which rewards are distributed. The reward amounts are generated by tracking on-chain conditions and events via an open source script (Such that any user can independently verify it).
An appointed Guardian account must sign off on any new Root before it is made official.
The BadgerTree contract tracks the cumulative amount of rewards claimed by the user, allowing them to claim their full unclaimed reward balance from across the system at once.
The full data of each Merkle tree, along with UI-friendly metadata, is uploaded to IFPS by the RootUpdater. The IPFS content hash and corresponding Merkle root are published to the contract on update.
The Admin has the rights to add or remote RootUpdaters
RootUpdaters can propose new Merkle roots with corresponding IPFS content hashes
The Guardian (also elected by the DAO) can approve proposed merkle roots, and pause the contract in an emergency situation.
The Guardian is expected to be running scripts independently to confirm every root.
The contract is aware of the total amount of each given token should be available for claiming at any given time.
Funds to be distributed via the BadgerTree are held in the RewardsEscrow to prevent malicious roots from allowing more tokens to be claimed than expected.
New roots do not become active until the guardian has 'signed off' on the root via an approval transaction.
Official website: https://badger.finance/
Whitepaper Link: https://badgerdao.medium.com