BadgerDAO’s Partnership With yearn.finance Will Promote Bitcoin Adoption

HashFlare

ComputerUniverse Введи промокод FW7FRUX при покупке и получи скидку 5 евро

Badger DAO, an Ethereum-based decentralized finance (DeFi) protocol on absorbing Bitcoin liquidity, recently announced its partnership with Yearn.finance.

Work in Progress

Launched in December, BadgerDAO is a project that promotes bitcoin adoption (i.e., tokenized bitcoin iterations such as WBTC and renBTC) on Ethereum. So far, the project has seen tremendous growth, bringing more than $2 billion in deposits to yesterday’s highs.

The recent weeks have seen major price variations in the project’s native coin BADGER rising from lows in the $5 to highs of $80 with no predictability.

Promoting Bitcoin Adoption

Badger’s core team just unveiled that it will be working closely with Yearn.finance to bring value to the project’s bitcoin vaults, allowing depositors to earn additional funds on their initial capital.

Badger will migrate their current synthetic bitcoin vault balance to Yearn’s; the Yearn vault will display in Badger’s app. Additionally, the two protocols will work together to build a new WBTC vault while the fees will be shared between the Badger and Yearn protocols.

Protocol developers consider this necessary because it will help create long-term value for depositors in the vaults compared to the vaults’ current state. 

The partnership also means Yearn’s developers can create a bitcoin vault incentivized with Badger and DIGG prices. This partnership allows the two communities to share net income from this vault based on the total TVL Badger run.

Currently, most of Badger’s profitability gets support from the issuance of BADGER, the BadgerDAO management token, and DIGG, a synthetic bitcoin rebasing. However, these returns are limited as only 21 million BADGERS, and 4,000 DIGGs currently are to be minted.

The platform prides itself as a developer first collective, which is why they allocated 15% of their total supply to the Badger developer mining program (currently valued at $258M).  

The Future is Bright

This partnership emerged as enthusiasm for Badger DAO’s next product, CLAW, grew. CLAW will be a stablecoin backed by deposits in the DAO Badger vault. It means that consumers can deposit capital into the Badger DAO, get a return on that deposit, and then withdraw stablecoins to trade or use in various aspects of DeFi.

It is a stablecoin that you install after using one of DAO’s sets as collateral and working with the UMA. The current deduction limit is $1 billion. Unlike DAI, the Claw has a limited expiration date by established publications.

BadgerDAO’s goal is to ensure vault strategists in the industry get appropriately rewarded for their hard work. As part of the collaboration, they leverage the Badger developer pool to incentivize these strategists further.

Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4