It is almost time ⏰
Time for the Badgers to build and release products that excel in a Bitcoin-dominated bull market! At the end of 2020, the #1 cryptocurrency has broken its all-time-high and is just starting its upward trend. As adoption of Bitcoin grows, so will the demand for financial instruments revolving around it.
In a similar light, it is the farming and liquidity mining protocols leveraging Bitcoin (BTC) and wrapped Bitcoin (wBTC) that are giving the cryptocurrency increased flexibility. Flexibility in leveraging your Bitcoin for liquidity, with protocols like Compound, or in earning enhanced rewards.
In the latter case, BadgerDAO is proudly releasing an elastic BTC-pegged token soon, $DIGG, and launching 3 new Setts or vaults dedicated to the token. To learn more about DIGG, including the specifications of our launch, the new $DIGG farming Setts, token functionality and utility, read on.
When Badger rocked the DeFi community with numerous Setts to earn competitive returns on Bitcoin assets and its namesake $BADGER token, there were aftershocks of excitement following another token burrowing its way from beneath the surface. $DIGG was in development by the Badger DAO team, and would soon be unearthed to the community surrounding the project. Fortunately for eager Badgers, with the passing of several governance matters surrounding the token, the DIGG launch is around the corner!
DIGG is an elastic supply cryptocurrency pegged to the price of Bitcoin. It has been developed and governed by the Badger DAO. When $BTC price moves, $DIGG will automatically adjust its supply accordingly. DIGG’s aim is to mimic Bitcoin’s price movements, with 24-hour rebasing period. This is reminiscent to projects such as Ampleforth, where the supply adjusts based on demand, while being pegged to the price of USDn. Badger’s Sett offerings, clearly favouring the Bitcoin bulls as community members in addition to their respected Badger stakeholders, design their DIGG token accordingly.
DIGG will maintain an elastic supply across all wallets holding the token. The total supply adjusts based on demand to reflect the pegged price of Bitcoin. The first rebase will be completed 24 hours after launch, with rebases scheduled daily. The token has the benefit of being non-dilutive. This means that like Bitcoin, owning 1% of the overall supply will not change unless you actively make a transfer. One of the key benefits of DIGG is the consistency of its mechanics, possessing rules governing its behavior that are the same for everyone who holds it.
When DIGG launches, there will be an extremely limited initial distribution of 4000 tokens over time (amended via BIP 19), with 600 for the $DIGG airdrop. Per Badger forum governance, DIGG Launch Parameters, DIGG will be distributed under the following parameters:
· 40% BadgerDAO Treasury
· 40% Farming Rewards (through DIGG Setts)
· 5% Founding Team
· 15% Airdropped to App Users
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%)
‘Earned Rewards’ means ‘Total $BADGER’ an address has earned, both claimed and unclaimed. ‘Badger Stake Days’ are calculated based on ‘Total $BADGER and BADGER LP’ staked multiplied by the days staked. In order to account for how supportive an address has been to BADGER, a ratio of Stake Days versus Earned Rewards is used. This helps Badger DAO reward those who have been staking their rewards vs those who sold.
Other details regarding the distribution were outlined in the BIP 14 forum post, including the use of a 1.75 root applied to the Earned Rewards to determine relative distribution. The purpose is to make the DIGG wealth distribution more equal among Badger users, benefiting DIGG as a product through increasing its store of value capacity. Sybil-resistance measures have also been implemented to prevent abuse of the distribution model.
While many eager Badgers have been asking for specifics on their expected DIGG airdrop, the best approach is to support Badger by using the Badger App and waiting patiently for the launch. Be ready, Badgers; the airdrop is near!
Badger’s New Setts 🦡
Along with DIGG’s launch, Badger is also releasing 3 new Setts or vaults for liquidity providers. The new Setts are dedicated exclusively to earning liquidity providers (LP’s) additional rewards through staking $DIGG through the following methods:
· DIGG Sett — Stake $DIGG for Compounding $DIGG Rewards
· DIGG/wBTC UNI — Stake pooled $DIGG and $wBTC for $BADGER + $DIGG Rewards
· DIGG/wBTC SUSHI — Stake pooled $DIGG and $wBTC for $BADGER + $DIGG +$xSUSHI Rewards
The goal of these new Setts is giving LP’s flexibility and variety in how they earn returns on their $BTC assets. As always, maximizing the return on your assets in a secure environment remains top priority for Badger DAO!