Badger Completes $21 Million DAO Treasury Diversification with Partners 0xB1, Polychain Capital, Parafi Capital and Blockchain Capital
Badger has one mission; bring BTC to DeFi. Since launch 3 months ago we’ve accelerated to $2B in total value locked, 13,000 active community members, $36M in annualized profit and amassed a treasury of $600M primarily in Badger/DIGG. As we mature it’s critical for us to align with strategic partners that can add value to the DAO’s governance along with bringing long term Bitcoin liquidity.
On Feb.20th community governance proposal, BIP 37 Treasury Diversification through Strategic Partnerships’ was passed and the core team began identifying the right partners to help Badger become the most trusted place to put Bitcoin to work.
We’re excited to share we’ve completed a $21M diversification of our Badger treasury with strategic partners 0xB1, Polychain Capital, Parafi Capital and Blockchain Capital.
“We are incredibly excited to partner with the BadgerDAO community. BadgerDAO is on a mission to vertically integrate the entire BTC-in-DeFi stack. By aggregating existing BTC DeFi protocols, building out a suite of new BTC-focused DeFi products, and economically aligning a community passionate about BTC in DeFi, Badger is becoming a Schelling point for new & existing BTC liquidity.”
- Jacob Phillips (Technical Researcher, Polychain)
As part of this diversification our strategic partners have committed to being actively involved in governance to help the protocol grow, providing long term liquidity and building more bridges with institutional ecosystem partners. With our goal to be the one stop shop for all things Bitcoin in DeFi, we need to further build trust in our protocol and having partners like these will continue to do that.
“Bitcoin is emerging as an incredible form of collateral due to its scarcity, history, and broad distribution. Badger DAO is building a best in-class broad suite of products that massively increase Bitcoin’s utility in DeFi, and we couldn’t be more excited to work with the team.” — Derek Hsue (Investor, Blockchain Capital)
The Badger Backstop
This treasury diversification is the beginning of the “Badger Backstop” fund as we continue to be hyper focused on securing our users funds. This is what we need to grow Badger regardless of the market conditions, as well as a means of securing our working capital to purchase platform insurance and builder compensation. We plan to use a portion of the DAO capital to create an insurance fund, providing increased platform protection for our users — which will drive increased TVL in the long run.
“ We’ve been involved in Badger since the day it launched and the team has continued to deliver with security always the top priority. As Badger grows to become the most trusted place to safely generate yield on Bitcoin across all chains, they will lead new waves of DeFi users into the space.”— 0xB1
DAO treasury transactions are novel and few have been done before. So we created a smart contract that ensured complete transparency and made the transaction easy on our partners. All the counter-party needed to do is approve the amount they intend to transact in their wallet. No need to send any funds at all. We encourage other protocols looking to do decentralized transactions to try using what we built.
- Approves the escrow contract for the exact amount of USDC (or any asset) of the trade
- They will fund the escrow with the exact amount of their asset (in our case bBadger)
- Either party can atomically execute the trade
- The beneficiary (counter parties wallet address) will be the recipient of a new timelock contract that can be claimed after a set period of time.
This is the escrow contract we’ve used https://github.com/Badger-Finance/badger-system/blob/develop/contracts/badger-timelock/OtcEscrow.sol.
“Over the past year, close to 1% of circulating Bitcoin has migrated to Ethereum’s DeFi ecosystem and made productive in various yield generating opportunities. As more Bitcoin holders wake up to the potential of DeFi, we believe Badger is uniquely positioned to capture that growing share. We’re excited to back the Badger team and help them further entrench their position as the primary home for Bitcoin in DeFi.” — Santiago R Santos, Partner @ ParaFi Capital
Although there will only be 21M Bitcoin and 21M Badger, there will NOT only be this $21M diversification. This represents the first tranche of potentially 3 we intend to complete over the coming months as outlined in BIP 37. We will continue to look for the right partners to grow Badger, build trust in the protocol and provide the capital necessary to weather all storms. Badgers are relentless, fearless and unshakeable.
“Badger DAO is a community of like minded individuals on a mission and who can’t be stopped. I feel confident welcoming the strategic partners and new badgers to the community like we’ve done with this diversification. This will only make us stronger and better position us to accomplish our mission.”
- Chris Spadafora, Badger