Until now, the Badger app hasn’t had mechanics in place to reward those who were long term supporters of the protocol. Instead the largest liquidity providers would earn the most Badger or Digg rewards and in many cases they would sell to realize gains immediately. After receiving great community feedback over the last few months, the team has developed a model that aligns the interests of users with the protocol, while enabling more than just staking Badger or Digg to have an impact on how they are rewarded. We call this innovation, Badger Boost.
What is Badger Boost?
Badger Boost is a users reward multiplier. The higher your boost (from 1 to 3) the higher percentage of the reward pool you earn.
When depositing Bitcoin in the Badger app, users receive interest in the form of compounding returns along with Badger and Digg rewards. Each vault has a range of returns based on your Badger Boost.
Badger Boost enables users to earn more rewards based on the dollar value of Badger or Digg they have staked relative to the dollar value of their Bitcoin deposits in the app. We call this the Badger Ratio and the formula is calculated as follows;
[$ value of BADGER Balance + $ value of DIGG Balance] / [$ Value of non-native staked sett positions].
This motivates users to stake the rewards they earn vs liquidating them since their overall return will be much higher.
What are non-native setts? They are sett vaults that don’t have Badger or Digg as an asset included in them. Below is a list of the current NATIVE sett vaults (excluding WBTC/ETH SLP) at the time of writing this article.
Badger Boost is also very competitive. Since there is a fixed reward pool, users are competing against other Badgers for their share. If a user has a lower boost but higher deposit amount of Bitcoin they technically could earn less of the pool than a Badger with a higher boost but lower dollar value of Bitcoin deposits.
How does it work?
For example: Badger A has $10k in Badger and $5k in BTC deposited in the app while Badger B has $10m in Badger and $10m in BTC staked in non-native setts. Despite having the smaller investment size, Badger A will receive the higher boost because their Badger Ratio is ultimately higher. This doesn’t mean they get a larger amount of rewards compared to Badger B but instead that they get a larger ROI on their deposits.
As you can see in the screenshot below, Badger A with a 2.99 Boost get’s almost the maximum ROI from the WBTC/ETH vault.
This method evens the playing field, allowing smaller deposits to achieve near-max boost relative to larger accounts.
All users will be ranked relative to each other’s Badger Ratio and will receive anywhere from a 1 (no multiplier) to a max of 3x multiplier (to start). The higher your ranking, the higher your dollar-to-dollar return on your deposits.
Composability and Flexibility
In designing Badger Boost we wanted to ensure users didn’t loose the utility in their staked Badger or Digg positions (bBadger or bDIGG) by having to lock them up for a period of time. With this model, we’re able to align incentives with users who want to stake their native assets while still enabling them to get the most out of their positions.
This formula allows for many other factors to be included outside of just staking your tokens. In V2 we’ll be activating Badger NFT’s as part of your boost. There will be many other things that users would want to have reflected in their boost over time and with this flexibility we can include them.
Where can I find my Boost multiplier?
After you’ve connected your wallet within the Badger app, you will need to ensure that portfolio view is turned on.
Once turned on, you will be able to view your Boost multiplier with your overall ranking, located below the available rewards section. Your boost will be between 1 (the lowest) and 3 (highest). It will also show your rank among all other Badgers that updates in real time.
How do I Increase my Boost?
Increasing your Boost multiplier is as simple as increasing the dollar value Badger or DIGG assets staked within the app, relative to the value of Bitcoin you have staked in non-native setts. This ultimately incentivizes users to increase their native holdings within the app over time to generate higher rewards.
Badger Boost Leaderboard
Badgers are fierce and relentless. To fuel that fierceness we’ve created a leaderboard to track your boost relative to others so you can better determine how much of the boost you need to increase to achieve your desired returns.
If you wish to view the leaderboard and your ranking within, you’ll simply click the Badger Arcade drop down menu on the left side of the app and click Boost Leaderboard to view.
This will take you to the front page of the leaderboard where you can then see where you rank in relation to other users. Clicking How Does it Work? Will take you back to this article where you can obviously learn more about how to access your Boost :).
Badger Boost V2
Today Badger Boost only takes into consideration the dollar value of Badger and Digg currently deposited relative to your total Bitcoin deposits. In V2, users will be able to increase their Badger and Digg balance through other means including Badger NFTs. In turn this increases your Badger ratio and overall boost. We’re working on a scoring system for our NFT’s and will release these details shortly.
For additional reference around how this may work see the general discussion post in the forum.
We’ll also be including deposited positions outside of Ethereum (BSC) in V2 and currently deposited in other protocols (Ruler, Cream etc.).
How Do I Learn More?
There are many ways to engage the Badger DAO community and educate yourself on the use of our protocol.