BadgerDAO Launching Curve Optimizer Vaults in Collaboration with Convex Finance

Overview

Why Partner First?

We are deploying new Curve strategies that will:

  • Only sell 20% of the earned CVX and CRV rewards for BTC and the rest is staked.
  • Lock 80% of all CRV earned for veCRV (in the form of cvxCRV).
  • Optimize yield on CVX and CRV by staking rewards and supporting the Convex protocol.

Convex

New Curve Optimizer Strategies

Deposits in the strategy will receive CRV and CVX

  • 10% will be sold for the underlying BTC asset and compounded to the pool
  • The remaining CVX and CRV will go towards optimal auto compounding as staked positions that will be distributed to the depositors directly and earn additional yield via cvxCRV, CVX, CRV & 3CRV rewards.

Depositors will receive

  • Higher yield through auto-compounding into crvBTC position
  • Staked CVX
  • Staked cvxCRV (CRV staked in Convex)
  • Boosted yield due to staking CVX and CRV on the users behalf.

BadgerDAO Treasury receives

30% performance fee

  • 10% will be sold for a BTC equivalent and added to the BadgerDAO treasury
  • 20% in staked CVX + staked cvxCRV (which will over the long term help badger strategies earn higher yields)
  • 0.20% Withdrawal fee

By building up these staked positions BadgerDAO will, over time, gain higher yield for its strategies and more influence in the CRV and Convex ecosystems. These are long term focused strategies and it will take some time for the benefits to be fully realized. To balance this out we will be evaluating performance and proposing emissions boosts if appropriate.

We don’t want to just make the switch immediately with the existing vaults so we will be launching 5 new vaults through a guarded launch with the identical strategy implemented.

  • oBTC
  • hBTC
  • bBTC
  • pBTC
  • Tricrypto

Once those vaults have been live for a sufficient period and the migration proposal passes we will then migrate the existing vaults to using the new convex strategy.

  • renBTC
  • sBTC
  • tBTC

Fees

Due to the nature of a fee change there will be a subsequent governance vote before implementing these new vault fees.

Introducing Helper Vaults

  • CVX: Deposit your CVX, BadgerDAO will stake it and handle autocompounding of all rewarded assets
  • cvxCRV: Deposit your CRV, Badger will stake it and handle autocompounding of all rewarded assets

There will be just a 10% performance fee and 0.1% withdrawal fee on these vaults. They will earn some BADGER rewards and might be eligible for reduced contribution to a users’ native balance in badger BOOST.

Badgers intention is to use the rewards in these vaults to vote in Convex governance to increase incentives for BTC pools and in turn increase yield for Badger depositors.

Unaccounted for Assets

We are open to talking to anyone from these teams if there’s a more mutually beneficial way to manage the assets.

Transition and Security

1. Begin with a guarded launch for up to 7 days for HBTC/OBTC/PBTC/BBTC/Tricrypto vaults. These will have a deposit cap per address and total cap for the vault.

2. Remove guards for the 5 new vaults and begin migration of the current renBTC/sBTC/tBTC vaults to the new strategies.

These strategies use mostly the same building blocks used for all of Badger’s existing strategies so full audits will not be needed before the gated launch. All strategies will still go through the review board and extensive testing before release. Details around exact launch time frame for phase 1 will be shared shortly.

Conclusion

How Do I Learn More?

ℹ️ Visit Badger Website

➡️ Check Out Our Github

➡️ Join Our Community Discord

➡️ Follow Us on Twitter

➡️ Connect on Telegram

*Badger tokens are a means by which users may utilize and govern the protocol. Badger DAO does not recommend purchasing Badger for speculative investment purposes. Badger tokens may lose value or have no value and may have no market. Note that if applicable law does not allow all or any part of the above limitation of liability to apply to you, the limitations will apply to you only to the maximum extent permitted by applicable law.*

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DAO dedicated to building products to bring BTC to DeFi.