Aside from algorithmic stablecoins, BadgerDAO has been one of Ethereum DeFi’s most talked about projects in recent weeks.
This is mainly due to the dropping of free BADGER coins on tens of thousands of DeFi users. Even funds like Three Arrows Capital and Alameda got involved, demanded their air drop, and sold or stuck their tokens.
BadgerDAO has since raised nearly $ 500 million in deposits on its platform as investors want to earn BADGER and participate in the platform’s potential returns.
The project plans to launch a rebasing token soon, similar to Ampleforth. Rebasing and algorithmic stablecoins have been all the rage in the past few months, with many up thousands of percent. The rebase token is called DIGG.
The DIGG start
It was recently confirmed that 14.5 percent of all existing DIGGs will be blown to badgers, users of the protocol.
DIGG is sent to users of the protocol based on three factors:
- Overall badger rewards earned
- Ratio badger earned / badger staked
- Badger marker staked out over time
If BIP 14 is about to pass, these are the $ DIGG airdrop details.
14.5% of the DIGG offer is sent to badgers who have used our app since launch.
The snapshot is taken immediately before it is published to give new users the opportunity to get involved now.
Thread ? pic.twitter.com/yXb0GXEMlc
– ₿adger DAO ? (@BadgerDAO) December 30, 2020
The idea here is to motivate those who put and kept their BADGE, rather than those who sold their minted coins.
BADGER is up 25 percent since the above tweet was shared.
A governance bet?
The prominent DeFi and Bitcoin-focused analyst “DT” or “Dgntec” thinks Badger could be one of the best bets on governance tokens right now.
They state that he sees the need for a DeFi protocol focused solely on Bitcoin to attract the enormous amount of liquidity on this network.
“Badger has to be less innovative – it could simply choose to be best in class (security, liquidity, UX) in every single DeFi industry for BTC. Given that more bitcoiners are falling into the DeFi rabbit hole every day, demand will grow. “
They added that BADGER may be undervalued from a purely numerical standpoint.
“Badger, a yield optimization protocol for BTC in DeFi, is one of the best R / R bets in terms of governance tokens. Advantages: 1) Mkt cap < 10M 2) TVL > 350 million (huge beneficiary of the BTC surge) 3) $ DIGG, their newly based BTC token, will 4) put 300% + APY out of the way for users. ”
Testing a Hypothesis:
1 / Badger, a yield optimization protocol for BTC in DeFi, is one of the best R / R bets in governance token atm.
1) Mkt cap <10M
2) TVL> 350 million (huge beneficiary of BTC surge)
3) $ DIGG, their newly based BTC token, is sent to users
4) 300% + APY pic.twitter.com/Nez2BY8Gwa
– DT (@dgntec) December 29, 2020
What is remarkable is that there is a lot of BADGER inflation ahead. There are only one or two million BADGER in circulation and around 20 million more are to be distributed in the coming years.
DT mentions this as one of their primary concerns when it comes to the overall banned value of the protocol and overall survivability.
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