Proposal: Add bDIGG as a Collateral Asset

Summary
We propose to add $bDIGG to Cream as a collateral asset. We think being able to lend and borrow bDIGG on Cream would open up several exciting opportunities for both Cream and Badger.

About Badger
Badger is a decentralized autonomous organization (DAO) focused on building the products and infrastructure necessary to accelerate Bitcoin as collateral across other blockchains. Specifically, it is an ecosystem DAO where projects and people from across DeFi can come together to collaborate and build the products DeFi needs. Shared ownership in the DAO incentivizes builders to have aligned objectives while decentralized governance ensures that those incentives remain fair to all parties and that the projects pursued are determined by the community. Badger is, first and foremost, a community-led initiative that prioritizes collaboration over competition and operates on fairness, transparency, and high collective engagement.

Badger’s first two products are Sett, an automated DeFi aggregator focused on tokenized BTC assets, and Digg, a non-custodial synthetic Bitcoin on Ethereum. Sett was launched on December 3, 2020, and Digg was launched on January 22nd, 2021.

About DIGG
An elastic supply token pegged to the price of Bitcoin and governed by the Badger DAO. bDIGG is the token that represents one’s position in the DIGG Sett on app.badger.finance and is indicative of a user’s partial ownership of the assets within the vault. The current yield on bDIGG stands around [154.28]% APY with over $[58m] locked in the Sett Vaults, making this an ideal productive asset as collateral.

How does it work?
Elastic Supply - Across all wallets, the total supply is adjusted based on demand to reflect the pegged price of bitcoin.

Daily Rebase - If the price is above the USD value of BTC that day the rebase is positive and balances increase, if the price is below, the rebase is negative and balances decrease.

Non Dilutive - This means DIGG is non-dilutive. Like Bitcoin, if you own 1% of the overall network you will always own 1% unless you actively make a transfer.

Continuous - The process repeats every day and is built into the DIGG protocol. Making its rules transparent and equal for everyone.

How do the Sett vaults work?

User goes to app.badger.finance and deposits $DIGG
User receives $bDIGG that represents their share of $DIGG staked in the Sett
$bDIGG is yield bearing and the rewards earned will be auto compounded for the user soon, outlined in BIP 24 (https://forum.badger.finance/t/bip-24-badger-boost-multiplier-replacement/1914 32)
User’s can at anytime unstake and claim their share of the $DIGG in the Sett

Benefits for Cream
Access to DIGG’s User Base: DIGG brings along with it a vibrant community of [3,137] holders (source) and [11,000]+ community members, known as Badgers, on Discord.
Increased TVL for Cream: This proposal will allow the Cream TVL to expand and will allow the Badger community to borrow other Assets against their $bDIGG tokens.

Risk Mitigation
We have been audited by both ZOKYO on December 11, 2020 and HAECHI on January 26, 2021. The DAO has funded a bounty on the Immunefi bug bounty platform for up to $500,000 to mitigate bugs and exploits. Seen here, Badger DAO Launches $500k Bug Bounty Program with Immunefi. A “War Room’’ with some of the industries leading white-hats in the space has been established in advance to prepare for quick maneuvering in case any exploits occur.

Links
Website: badger.finance
Application: app.badger.finance 3
Twitter: @BadgerDAO
Discord: Server Invite 1
Medium: Badger DAO
Github: Badger Finance
Gitbook: Badger Finance
Token holders source: https://etherscan.io/token/0x798d1be841a82a273720ce31c822c61a67a601c3
bDIGG contract Address: 0x798d1be841a82a273720ce31c822c61a67a601c3

Add Support for bDIGG on Cream?
  • Yes
  • No

0 voters

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