Bitcoin DeFi challenge Badger DAO diversifies its $21 million treasury

Badger DAO is without doubt one of the solely Bitcoin-focussed DeFi merchandise available on the market and is increasing its ambitions.

Forwards for Badger

Badger DAO, the Bitcoin-focused decentralized finance (DeFi) protocol, has diversified a $21 million treasury by way of its “strategic companions,” the challenge said this morning. The companions shall assist add worth to the DAO’s governance together with bringing long-term Bitcoin liquidity.

We’re excited to share that we have accomplished a $21M diversification of the Badger DAO treasury with strategic companions @0x_b1, @polychaincap, @paraficapital & @blockchaincap.

21M Bitcoin ➡️ 21M Badger ➡️ 21M Diversification

All the main points 👉 https://t.co/0AntGBZhnq

Thread 👇 pic.twitter.com/Yyu42ilBB0

— ₿adger DAO 🦡 (@BadgerDAO) March 3, 2021

The transfer got here after the Badger Enchancment Proposal (BIP) 37 [Treasury Diversification through Strategic Partnerships] was handed earlier in February. 

Based final 12 months, Badger brings Bitcoin to DeFi by constructing out usecases for ‘wrapped BTC’ merchandise. Over $2 billion price of assorted cryptocurrencies is locked on Badger, $36 million in annualized revenue has been generated, and a treasury of $600 million has been amassed by way of Badger (a governance token) and DIGG (elastic provide crypto pegged to Bitcoin).

The protocol’s now taking its aspirations a step forward. As per the announcement, the brand new strategic companions—crypto funds Polychain Capital, Parafi Capital, and Blockchain Capital, and nameless DeFi investor “0xB1”—would now be concerned in governing the platform, serving to the protocol develop, present long-term liquidity, and constructing extra synergy with different institutional funds.

“Over the previous 12 months, near 1% of circulating Bitcoin has migrated to Ethereum’s DeFi ecosystem and made productive in varied yield producing alternatives,” stated Santiago Santos, a companion at ParaFi Capital.

He added as extra Bitcoin holders regarded in the direction of interacting with DeFi apps, Badger would seize the rising share of that demand.

Jacob Phillips, a Technical Researcher at Polychain, stated that by aggregating current Bitcoin DeFi protocols, constructing out a set of latest BTC-focused DeFi merchandise, and economically aligning a group obsessed with BTC in DeFi, Badger was rapidly changing into a Schelling point for each new and current Bitcoin liquidity.

Not a 21 meme

Within the launch, Badger stated the treasury diversification marked the beginning of the “Badger Backstop” fund—an effort that may see continuous improvement in the direction of securing person belongings and rising the protocol “whatever the market situations.”

The discharge stated:

“We plan to make use of a portion of the DAO capital to create an insurance coverage fund, offering elevated platform safety for our customers — which is able to drive elevated TVL in the long term.”

Doing so would keep away from the scenario of protocol improvement ceasing in case of an unfavorable market (final seen within the aftermath of the notorious 2017 ICO bubble).

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Though there’ll solely be 21M Bitcoin & 21M Badger, there’ll NOT solely be this $21M diversification. This represents the primary tranche of probably 3 we intend to finish over the approaching months as outlined in BIP 37.

We’ll proceed to search for the proper companions.

— ₿adger DAO 🦡 (@BadgerDAO) March 3, 2021

In the meantime, regardless of the “21” meme (of there being 21 million Bitcoin, 21 million Badger, and the $21 million diversification), Badger stated the transfer was simply the beginning of three upcoming diversification. The staff stated it will proceed to search out the proper companions to develop Badger and construct belief within the protocol.

“Badgers are relentless, fearless, and unshakeable,” the discharge ended.

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