Why hold Bitcoin when you can hold Interest Bearing Bitcoin?
We did it, Badgers
Today is the long awaited launch of interest bearing bitcoin (ibBTC) in partnership with DefiDollar. An asset that will become the easiest onramp for any user holding bitcoin to put it to work through DeFi.
For Badgers it opens up a whole new world of opportunities. No longer will your deposits in the Badger Bitcoin vaults be illiquid, as users can now use their vault positions to mint ibBTC and leverage that asset across DeFi. Think lending, borrowing, farming, providing liquidity and bringing it cross-chain.
The first utility will be to provide liquidity on the new Sushiswap ibBTC/WBTC pool and deposit that LP token into a Badger vault for boosted APY and little impermanent loss.
We can’t get ahead of ourselves though. As per our more recent enhanced security standards, ibBTC will have a guarded launch to ensure the protocol has no security vulnerabilities.
Guarded Launch Plan
The initial guarded launch will have a 3 phase approach.
Phase 1: Whitelist Participants Only
- 1 BTC/user with a cap of $2m total mint
Phase 2: Whitelist Participants Only
- 5 BTC/user with a cap of $10m total mint
Phase 3: Open to Everyone
- 10 BTC/user with a cap of $25m total mint
Do you qualify for the guarded launch?
Our team pulled data based on several conditions to prequalify a select number of wallet addresses for the guarded launch.
We determined that a users wallet address qualifies if:
- They are a non-native Sett user today
- They are a DIGG supporter below peg
Or they fulfill at least two of the following conditions:
- They are a governance participant
- They were Badger staking & LPing before DIGG launch
- They have been Badger staking & LPing since DIGG launch
- They have been in non-native Setts since the beginning
- They have been DIGG Staking & LPing since launch
- They own a Badger NFT
The qualification criteria for the DefiDollar community is as follows:
- Users who staked DFD in the DFD Vault for > 4 months
- A minimum of 10k DFD currently staked
If you still aren’t quite sure if you qualify, we’ve got you covered. Just follow the steps below to find out if you are eligible.
- Visit http://score.badger.finance
- Enter your wallet address.
- If qualified, get ready to mint when we go live!
Building together with DeFiDollar
DeFiDollar’s experience building indexes on top of Curve pools makes this culmination of 4 vaults assets together into a single interest bearing BTC token possible. ibBTC is a highly composable product, and this highlights the modular nature of both protocols. This collaboration will pave the way for more partnerships of a similar nature in the future. We invite everyone to come and build that future with us.
How to mint and leverage ibBTC
To begin minting ibBTC, you’ll need to have Badger Sett Assets staked in the following vaults:
If you don’t have any Bitcoin in the Badger Setts, the easiest way to stack sats with Badger is to take your WBTC and deposit it in the Yearn WBTC vault like so:
And if you are just starting with good old BTC, you can send it straight to the Sett Vaults through the Badger Bridge.
*Note: If you have been using the Badger Setts for a while now, you’ll remember that you didn’t just have to Deposit, but you also had to Stake. Although we recently made our Sett Vault assets composable, those who were originally were required to stake their assets, will need to Unstake to get their Sett Vault tokens.
I. Mint ibBTC with your Sett Vault assets
1. Connect Metamask
When you get to the ibBTC page, on the top right there should be a button to connect your wallet. Once connected, the app will recognize that your vault tokens are present and allow you to begin the minting process.
2. Enter the amount of ibBTC you’d like to mint, and from which Sett, then click Mint
Now you have your interest-bearing Bitcoin — composable and earning yield just by HODLing! But the yield opportunities are only getting started.
II. LPing with Sushi
You might be familiar with Sushi — an AMM decentralized exchange where you can deposit assets in 50/50 pools and earn $SUSHI rewards.
1. Head over to Sushi and provide liquidity in a ibBTC/WBTC pool
Remember you will need to have the exact value in both. In this case, it’ll be very close to 1:1. So if you want to stake 0.5 ibBTC, you’ll have to pair it with roughly 0.5 WBTC to match it. When you deposit into the WBTC/ibBTC pool, you’ll then receive liquidity pool tokens, also known as SLP tokens.
Head back to the Badger App and stake your SLP tokens into our new SLP WBTC/ibBTC Sett
Here is where you’ll be able to earn rewards in $BADGER, $DIGG, $SUSHI, and $DFD from DeFiDollar. Back in the Badger App, you’ll see a brand new Sett for the SLP WBTC/ibBTC pool token. All you have to do is Approve and Deposit your SLP tokens, sit back, and watch your stack build. ⚒
III. Redeeming your ibBTC
Let’s say you’ve been staking SLP WBTC/ibBTC in the Badger Sett and you want to go back and redeem your ibBTC in order to unlock the underlying assets.
- Go to your SLP WBTC/ibBTC Sett Vault and Withdraw
This gets you your SLP WBTC/ibBTC liquidity pool tokens, which you can then redeem for WBTC and ibBTC on Sushi.
2. Take your ibBTC back to the ibBTC Minter page and click Redeem
Input the amount of ibBTC you’d like to redeem for your Badger Sett Vault tokens and you’ll have finally redeemed your ibBTC.
With more products from Badger come more ways to earn yield on your Bitcoin. Stay tuned, as this is only the start of what you’ll be able to do with the interest-bearing standard for Bitcoin, ibBTC.