The recent popularity of decentralized finance is quite unimaginable. The system comes with a great possibility in creating lasting solutions to many limitations before its advert. It explains why several fintech developers are aligning their works on the DeFi ideology.
Bitcoin holders have always had the challenge of transferring BTC to a DeFi platform in Ethereum through a secure and reliable means.
They face the risk of exploitation which has kept locked over $600 billion value of under-utilized Bitcoin. So, it will take a community-owned, user-friendly, and trustless platform to overcome such challenges.
That’s where Badger DAO comes in. It’s a decentralized automated organization that is under the control of a crypto community. This new DeFi protocol offers the right solution to BTC investors by presenting the platform for speedy transfers of Bitcoin.
This article will review the Badger DAO protocol, how it works, its token, and solutions to salient expectations in DeFi.
What is Badger DAO?
Badger DAO is an open-source, decentralized platform that aims to simplify Bitcoin as collateral in decentralized finance. It does that by creating infrastructure and products that monitor the movement of Bitcoin in Ethereum and other smart contract platforms.
As a DAO, it means that Badger is a decentralized autonomous organization. So, the community is at the head of the governance structure and controls the protocol.
Badge DAO has the fundamental design of collaborating and developing joint products with other DeFi projects. In addition, the DAO governance structure of Badger DAO permits other developers to include their rewards within the decentralized governance. So, this promotes partnership in the decentralized ecosystem rather than competition.
Furthermore, Badger DAO kick-started with the basic aim of establishing a community governed project. The community will solely propose and decide on the potential new products that need to be created from its functionality. Moreover, they will state how and when such products are required. Also, it lies within the DAO community to ensure fair token distribution to participants on the platform. This will help in creating a transparent platform where there’s fairness for users.
To ensure the successful move of the protocol, the DAO has to lure sufficient liquidity, content coders, and creators into the community.
History of Badger DAO And Its Team
As a DAO project, Badger DAO places no significant preferences on its founders. However, Badger DAO has the following four founders:
- Chris Spadafora – He is the operation lead of Badger DAO. As a serial entrepreneur, he has founded several companies. He was part of Alwayshodl.com. Also, he partnered with Angelrock, a strategic consulting firm for crypto holding on a long-term basis.
- Albert Castellana – He is Badger DAO’s product advisor. Also, he is the CEO and co-founder of Stakehound.com.
- Ameer Rosic – He is in the operation team at Badger DAO. Also, he’s the founder of Blockgeeks.com and a serial entrepreneur.
- Alberto Cevallos – He is the technical advisor at Badger DAO. Also, he’s the founder of Metl, an infrastructural developer for the internet of money, and Travala’s advisor.
Badger DAO’s founding team worked in collaboration with dORG to develop this community governance project. dORG is a development organization that specializes in creating Web3 Tooling, DeFi products, and custom DAOs. They have collaborated with other projects such as The Graph, Balancer, DAOstack, and DeversiFi.
As a DAO, the project community has the governance power on the platform. They are in charge of marketing efforts, product operations, and code submission.
How BADGER Work?
As preference swifts from centralized control to community governance, more DAO projects are emerging to fill in the gaps. Thus, most protocols now use governance tokens in the functionality of the projects.
The ideal design of a DAO community is completely different from its real-world application that is less attractive. Several reasons are contributory factors, among which are the gas fees that go with on-chain voting.
Also, there are situations where users rarely participate in the community. This could be from the lack of responsibility or ownership to the DAO. The ideal concept of DAO inculcates active community participation and voting. However, it will be worthless if users relegate them or dismiss and disapprove of relevant proposed changes. Where the votes are not regarded, people will pay less attention to any possible chances of change.
What Makes Badger DAO Unique?
For the development of any product on Badger DAO, the governance community has the authority. There will first be a proposal, voting, and approval by the token holders.
Badger DAO has two major projects – Sett and DIGG.
These aspects of Badger DAO ensure that the project constantly remains a community-led DAO that is fair and transparent:
- Products are community-initiated and created.
- Badger Builders.
- Codes are open-sourced.
- Badger dedicated operations team.
- Fair initial distribution of the governance BADGER tokens.
Community members can raise a new product proposal to the DAO, after which the proposal is pitched on a video to the greater community. When the proposal passes the initial stage, it then requires approval through official voting. If approved, the Badger DAO operations team steps into the collaboration to build, fund, and market the product. The major idea remains that no single community member proposes and approves a product. The entire process must involve several community participants for the development of products in Badger DAO.
There is collaboration, openness, and willingness from the Badger Builders to work with interested persons. The door is open to DeFi applications and developers who intend to join the program.
Moreover, Badger DAO includes a structure that allows users to develop what is relevant for the DeFi ecosystem. The development ideas can come from individuals, developers, blockchain firms, or even dev shops. The platform runs with fairness, transparency and incentivizes those product initiators through token rewards, shared fees, and others.
Furthermore, Badger DAO brings a solution that replaces the fragmented solutions from centralized entities. As a result, the DeFi protocol, through its DAO community, creates suitable products that satisfy the demands of the industry.
BADGER Token Launch
Badger runs similarly to Yearn.finance with its token launch. This puts the BADGER token to be precisely used for DAO governance without any monetary value. Also, the token started through an impartial liquidity mining launch.
The starting process removes the vulnerability of the protocol to any centralized control. Thus, the project had no VC funds, early investors, or anonymous backers that could inflict a token crash by dumping all their holdings.
This pushes Badger DAO to be completely decentralized as it evades any potential sketchy circumstances in its operations. As a result, the protocol distinguishes itself from other projects launched with over 90% control by founders, early investors, or advisors.
Also, the system had a thorough audit of its smart contract code by Zokyo, the reputable third-party auditing company. This helped to confirm the flawlessness and security of the platform.
The Badger DAO has a max supply of 21 million BADGER tokens, with over 10 million tokens already in circulation. The protocol has a market cap of over $262 million. At the time of writing, the BADGER is priced at $24.11 token.
Based on the fixed maximum supply of the BADGER tokens, the mint function was burnt at launch. Also, there is no seeding of liquidity by Badger on other exchanges.
Badger DAO operates with incentivization. It has a 10% of the total supply (21 million) BADGER tokens set aside as its founder rewards. This helps to motivate the founder team in deepening their commitment to the success of the project.
Also, this founder reward will not have a one-time distribution. The founder reward wallet will keep receiving a percentage of Badger as the community mine the tokens. The Badger DAO community has the reaming 90% BADGER tokens for its mining.
Furthermore, the founder reward wallet will remain locked for one year but can participate in voting. After that, there will be an even weekly release of tokens from the wallet to the founder across 12 months. Thus, it will checkmate the founders from dumping all their holdings and create deflation in the BADGER market price.
Badger DAO’s First Product – Sett
Naturally, badgers are animals that dig tunnels and caves into building their homes. Then they a huge covering with frass and leaves as their beddings. And a badger’s home is known as a Sett.
Setts have the reputable of lasting for a very long time; some can last for centuries. They are known for their strength and protective nature, that several generations of badgers can continue to inhabit them.
This is the exact concept used by the Badger DAO in developing its product Sett for crypto users. Badger Dao aims to develop products that focus on Bitcoin. It’s also imperative to have a product that BADGER holders have a product to govern. Also, BADGER holders can earn more tokens through the use of Sett.
Sett is an automated decentralized finance aggregator. Being inspired and patterned after Yearn,Finance vaults, SETT vaults focus exclusively on tokenized Bitcoin. By depositing their assets, users can earn a yield.
Through the smart contract, the protocol utilizes the assets to execute some strategies across other DeFi platforms. So, users can leverage yield earning without any heavy lifting, such as gas fees or multiple transactions.
When users deposit into Sett vaults for a limited number of weeks, they can earn yield and more BADGER tokens. The amount of BADGER to earn depends on the period for staking. The longer the stake, the higher the rewards, and it runs in the range of 1x, 2x, 3x, etc.
Also, users have the choice of withdrawing their assets anytime. However, a withdrawal fee of 0.5% and an added 4.5% fee from generated profit account for transaction costs and gas fees.
At the time of launch, the Badger DAO team created five Setts. The first four are for compounding strategies, while the fifth is for the staking of BADGER.
The five Setts are:
- Curve – STBC – LP tokens
- Curve – RENBTC – LP tokens
- Curve – TBTC – LP tokens
- Badger – WBTC Uniswap LP
- Badger – Stake BADGER and earn more BADGER
Also, there are additional six more Setts, among which users can use to earn more DIGG by staking DIGG.
From the trend of its move, there are high expectations for more Sett products through strategy development and community proposals. Some of the innovative expectations include:
- More compounding strategies
- Native BTC deposits
- Single asset vaults that have many strategies, etc.
Badger DAO’s Second Product – DIGG
Badger DAO has a second product called DIGG, which is a community project. DIGG is a non-custodial product that links to Bitcoin synthetics on Ethereum. Furthermore, DIGG is an elastic supply digital asset pegged to Bitcoin’s price. Hence, it can be considered a stablecoin.
There’s a daily automatic adjustment of DIGG’s supply in all holders’ wallets. These adjustments depend on the current of DIGG about the U.S. dollars and Bitcoin.
When the price of DIGG is higher than BTC, the DIGG token in users’ wallets will increase. Conversely, a reduction in DIGG price below BTC will cause a decrease in the DIGG tokens in users’ wallets.
From its functionality, DIGG intends to eliminate centralized control on BTC. It does that through the use of elastic parameters in its smart contracts to sustain the price peg. The DIGG system relies on its connection to a price oracle that updates the real-time USD price of BTC.
When the price of DIGG is higher than BTC, it means that there are more demands. Subsequently, users will have more DIGG tokens in their wallets, and there will be more selling pressure for the token. The reverse is the situation when the price of DIGG is lower than BTC.
In its rebasing process, DIGG uses its parameters to influence a price change. It maintains the price peg by either using incentives to increase or reduces price or each block rebasing.
There is an available Sett Vault for users can stake to earn more DIGGs.
There are still 50% undistributed tokens under liquidity mining that are under the control of the Badger DAO. The BADGER token holders have the governance power over the following through the first product:
- Future smart contract changes
- Token supply
- Marketing decisions
- Protocol products’ parameters.
By staking BADGER, users get composable yield farming tokens known as bBadger. Also, the staking rewards are auto-compounding as users earn in bBadger.
This process of staking and its rewards encourages a higher lockup of tokens. This accounts for the lockup rate of over 90% after the DAO approved the auto-compounding of bBadger. Furthermore, there’s no gas requirement for staking. Rather, it’s the unstacking that does.
The Badger DAO team is still striving to include a utility to bBadger tokens through integrating other DeFi projects as a collateral type. This will create the opportunity of earning more yield for users by minting stablecoins on UMA.
Moreover, adding the token to CREAM platform users to utility bBadger collateral for borrowing assets. Traders can also leverage in their transactions by using the long/short bBadger limits.
There are quite a handful of other proposals involving bBadger that will drive more yield from the token. It all lies in the use of bBadger’s composability to facilitate money machines for passive income through different sources.
Where and How to Buy Badger DAO – BADGER
When looking for where to buy BADGER, always ensure to use trusted and reputable platforms. This will save you the risk of being exposed to unregulated platforms that are susceptible to fraud and hacks.
BADGER is listed on some crypto exchanges such as Binance, Huobi Global, FTX, OKEx, ZT, etc.
For most exchanges, you can’t buy BADGER directly using fiat currency. Instead, the process demands that you first buy another cryptocurrency such as Bitcoin or Ethereum and then exchange for BADGER.
The following steps serve as a guide to buying BADGER from Binance.
- Sign up for an online exchange account – You’ll first sign up for an account by visiting Binance’s official website. Then, click on create a new account to register for your online account. Next, you will fill the on-screen form using your detail.
- Verify your account – You will need to verify your account by uploading your government-issued ID and a recent utility bill. This process serves as KYC documentation. You will receive a confirmation once your account is verified.
- Deposit your fiat money – Select any of the listed payment methods on the platform suitable for you. Some of the options include bank transfers, credit/debit cards, Paypal, Skrill, etc.
- Buy BADGER – Once your fund’s deposit is confirmed, you can proceed to buy BADER from the platform.
Remember to get a compatible wallet for the storage of your BADGER after buying the tokens.
Conclusion of Badger DAO Review
Just like other blockchain protocols, the continuity and success of Badger DAO depend on its adoption. The protocol needs the collective effort of both the community and its team to maintain the crucial collaboration. Also, content creators and developers will play their role in ensuring apps and necessary content. The community will as well utilize such creation to boost the entire crypto ecosystem.
From its progress, Badger DAO proves to bring a solution to crypto users, especially Bitcoin holders. The protocol uses its incentives to reward users according.
Furthermore, through its community-led governance, it eliminates any possibility of third-party control in its operability. This offers more security to the platform and prevents common errors from the influences of project investors and their likes.
Going by its recent stance from its launch, Badger DAO promises to be among the top DeFi protocols that users can never relegate.