Badger x Meme NFT Honeypot part II: Diamond Hands
Tl;dr: A new game from BadgerDAO and MEME. Anyone can play, those with the strongest hands win.
BadgerDAO has always been about games. After all, Bitcoin itself is a massive money game with different participants locked in a never ending battle to secure and drive the network. In the most gamified experience to date Badger DAO has partnered once again with the MEME team to launch the Honeypot part II: Diamond Hands.
In Honeypot part I players staked bBADGER or BADGER UNI LP tokens to farm any of 6 NFTs. The first to collect all 6 NFTs was able to claim a pot of BADGER (worth >$30,000 at the time of redemption). A few addresses were able to farm across 6 wallets all at once and claim the last NFT within a couple blocks of each other, with one address beating the rest to win the prize. It was a great way to inspire some deposits into vault and LP positions and add some drama around the distribution of the first 6 (of what will ultimately be many) badger NFTs.
Since Badger had its turn it is only right to do the same for the second BadgerDAO asset DIGG (and in this instance the vault-deposited DIGG, bDIGG). With this second run at the honeypot though we made some adjustments based on what we learned from the last event. The changes are both around the pineapple accrual mechanism and the claiming mechanism. The goal is to extend both the level and timeframe of participation.
- No Deposit caps — There was a limit to how much an address could stake the first time around. For round II the pool will be uncapped!
- Root Earnings — If Pineapples were to accrue linearly, whales would have an immense advantage in an uncapped pool. To level the playing field we are 4-rooting the Pineapple accrual. Staking .2 bDIGG will earn you ~5 pineapples a day, 1 bDIGG = 7.59, 10 bDIGG = 13.5.
The overarching goal for the design of this game was to create multiple concurrent somewhat equal competitions. Where acquiring most rare MEME NFTs usually comes down to being the fastest to click and stake and mint in the first blocks possible, this structure adds more uncertainty as everyone is accruing pineapples at a different rate.
X axis = staked bDIGG, Y axis = pineapples/day, Z is set to 1.35 to normalize .2 bDIGG = 5 pineapples/day.
When playing money games on open systems it is impossible to completely level the playing field. What can be done though is to level tiers of different playing fields. A game where only whales win at the expense of smaller holders is not fun. But in a game where whales compete against whales while shrimp compete against shrimp there are winners and losers in both categories.
bDIGG is fairly evenly distributed which removes the risk of one entity being able to overwhelm the root calculation. Some addresses could split funds but they would risk falling out of the top 10 individual stakers and lose out on the rarest NFT. We are hoping this results in a more interesting and fun game for all involved.
- Everyone “wins”- All NFTs will be able to be redeemed for a portion of the honeypot. In the first game there was only one winner, in this game everyone can redeem.
- Play the long game — The later you are to redeem the larger portion of the redemption pool you get. This game could be quick but that would be surprising, it may never end. The first round was over minutes after the last NFT was mintable. The last player in part II to redeem gets ~5% of the pool regardless of what NFT it is.
To achieve this we are using a power-adjusted redemption method. When an NFT is sent to the redemption contract the sender receives a proportion of the honeypot relative to the number of NFTs remaining. There will be 260 total NFTs, if you have the rarest NFT you will be able to redeem the first one for 1/260th (.38%) of the pool and that will continue linearly. But there are only 10 of the legendary. The common and the rare NFTs (200 and 50 supply respectively) will both have a power (1.5 and 1.3 respectively) applied on redemption. If a common is the first card to be redeemed then the redeemer will receive .023% of the redemption pool. If the second redeemer is a common then they will receive .024%. Adding the power on the more common cards makes it so that the later you are to redeem the higher portion of the pool you will receive (shout out to tree.finance for the inspiration here). There is a massive disadvantage early but that dissipates as the final cards are being redeemed so, as they all become more scarce, the values of the different cards should converge.
X Axis = % of total NFTs redeemed, Y Axis = % of pool distributed, red = legendary, blue = rare, green = common
You can see how the mechanics work with a randomly chosen redemption order here:
Honeypot pt.2 - Diamond Hands [PUBLIC]
Card Root 200/50/10 Pineapple Accrual,Deposit,Pineapples/Day mult,1000,0.2,5.08 bDIGG in pool,10,points/day,3.7,1,7.59…
The NFTs themselves will be dropped in a subsequent post.
A key component of the game will be the size of the redemption pool. Jon Tompkins will be putting forth a BIP to approve the funds that will go into the pool. The bigger the pool the more incentive to redeem (lock in return now) and to hold (potential for larger gains in the future). Keep an eye out to see just how big the game gets!