[bBADGER] - MIP6 Collateral Onboarding Application

  1. Who is the interested party for this collateral application?

ParaFi Capital, with material prepared by @monet-supply, @BitcoinPalmer, the BadgerDAO community, and the ParaFi team.

  1. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

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 the ecosystem can 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 initiatives pursued are determined by the community.

BADGER is the DAO’s governance token, while bBADGER is the token that represents one’s position in the Badger Sett on app.badger.finance and is indicative of a user’s partial ownership of the assets within the vault. bBADGER receives liquidity incentives and is a yield-generating asset with revenues from Badger’s suite of products and vaults.

There is currently 2,815,000 bBADGER in circulation, which corresponds to 3,434,300 BADGER. This amount of BADGER represents approximately half of the circulating BADGER supply.

  1. Provide a brief history of the project.

The BadgerDAO was bootstrapped by a small team before launching an Early Contributors Program in October of 2020. This led to Badger’s first two products, the Sett, an automated DeFi aggregator focused on tokenized BTC, and Digg, a non-custodial synthetic Bitcoin on Ethereum. Sett was launched on December 3, 2020, and Digg was launched on January 22nd, 2021. There are additional products under development, such as a fixed term yield dollar product and an interest-bearing bitcoin basket. The DAO is collaborating with projects like UMA, DeFiDollar, and Yearn.finance.

  1. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Documentation: Badger Finance - Badger Finance

Website: https://badger.finance/

Source Code: Badger Finance · GitHub

bBADGER token contract: https://etherscan.io/token/0x19d97d8fa813ee2f51ad4b4e04ea08baf4dffc28

BADGER (underlying token) contract: https://etherscan.io/token/0x3472a5a71965499acd81997a54bba8d852c6e53d

  1. Link any available audits of the project. Both procedural and smart contract focused audits.
  1. Link to any active communities relating to your project.

Twitter: https://twitter.com/BadgerDAO

Telegram: Telegram: Contact @badger_dao

Discord: Badger

Blog: https://badgerdao.medium.com/

  1. How is the applying collateral type currently used?

bBADGER is the staked version of the BADGER token. Currently, bBADGER holders receive liquidity incentive rewards for staking, but bBADGER’s utility increases daily as the DAO pursues expanded cash flow streams, use cases, and products. bBADGER is currently under consideration to be onboarded as a collateral type to Aave, and is already a supported asset on Cream

  1. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

Badger contracts are upgradable by the BadgerDAO multisig which is behind a 48 hour timelock and 5/7 signer at the address: 0x21CF9b77F88Adf8F8C98d7E33Fe601DC57bC0893

BadgerDAO is a decentralized organization, and BADGER is a bearer/non-custodial asset.

  1. Where does exchange for the asset occur?

bBADGER can be easily exchanged for BADGER via the bBadger deposit contract. BADGER is traded on several decentralized exchange platforms, with the largest amount of liquidity available on Sushiswap. BADGER was also recently listed on Binance, and is also listed on other prominent exchanges such as FTX, OKEx, and Huobi.

There is significant liquidity for BADGER across the crypto ecosystem. Through January and February, there was over $40 million worth of BADGER liquidity across both Uniswap and SushiSwap. Importantly, the liquidity for the token has been stable despite volatile market conditions.

According to CoinGecko, BADGER has consistently seen over $20 million worth of volume per day across centralized and decentralized exchanges since the start of January.

  1. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

n/a

  1. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

n/a

  1. (Optional) List any possible oracle data sources for the proposed Collateral type.

Centralized exchanges listed in section 9 may offer price feeds for BADGER. The BADGER<>bBADGER ratio can be computed from on chain data. The live ratio can be viewed by querying the bBadger contract, found here.

The price for bBADGER is determined by price of BADGER * PricePerFullShare() of the bBADGER contract.

  1. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.

n/a

Disclosure: Interested parties may hold a financial stake in tokens mentioned. This collateral application is for informational purposes only, and does not constitute advice of any kind.

Copyright and related rights waived via CC0.

6 Likes

This would be great for both communities. I fully support this. Cream has ~14 million USD value in bBadger supply and is at 60% borrow limit. I myself have used this feature. I believe with Maker on board, this will bring the Badger community into Maker increasing traffic and income through interest in the assets being borrowed, as well as allowing bbadger to broaden its use.
Thank you for considering Badger to become a part of your ecosystem.

1 Like

I support!

1 Like

I created my first cdp with Maker in 2017 and have been a holder of the Maker token since then. Late last year I became involved with Badger and see much of the same potential I saw with Maker. Bringing these two together will unlock great value for both protocols. Badger is focused on bringing bitcoin to defi and is only very early in its journey yet already it has gained a huge amount of TVL. It’s focus on security and the many new products coming this year will bring in massive amounts of capital that bitcoin represents and being able to use that as collateral on Maker will allow for large amounts of dai to be created and generating fees for Maker. It will also unlock value for badger holders to use throughout defi. Please make this happen!

2 Likes

Weird how your account was created on Feb 6th 2021 despite holding Maker since 2017

Thanks for the proposal!

Is there any concern with how the Badger team has ran the project so-far?

Their code standards are questionable (https://twitter.com/StanKozlovski/status/1361602807305031682) and they have a history of making and passing controversials proposals in the past, like paying everybody from their DAO team (11) north of $800k yearly in Badger tokens, paid out daily.

2 Likes

I fully support this as the badger team is dedicated an committed to expanding Bitcoin beyond its own chain. The badger team has proved to be innovative and bring an elastic supply token (DIGG) based on bitcoin’s price. We need this innovation in the space.

I also fully support this proposal. The team at Badger is really doing a nice job to improve the protocol every day.

1 Like

Why is it weird? I never participated in the forum before.

Hello, mitche50 from the badger team here. Thanks for the proposal and looking forward to feedback!

Addressing these two concerns:

  • The Twitter link goes to a PR where there are less than 60 lines changed of actual code, and a large json file added. This has nothing to do with coding standards.

  • The “controversial” BIP had a 98% acceptance rate and one of the highest voter participation: Snapshot

1 Like

Fair point - even if that particular PR is mostly json, it doesn’t change the fact that there are no reviews.

The Twitter post links to another large PR (again, a fair amount of JSON but a lot of other changes (124 commits, 163 files changed) that is a mix of commits from different contributors and absolutely zero review activity. It doesn’t take much for one to open up the recently-merged PRs and take a cursory look of the coding standards that the project employs.

Regarding the controversial BIP - the forum says otherwise - BIP 35: Long-Term Core-Contributors - BIP | Badger Improvement Proposals - BadgerDAO

Just some excerpts:

So, this is what I am doing. I have mentioned that I agree in principle with the framework, except that I believe the Badger portion should not be paid daily, and that everyone (you, Badger, the community) would be better served if that portion is used in a more strategic way

Although I love this project, the compensation is not reasonable. Especially if the compensation isn’t locked up somehow.

And the proposal itself was very half thought-out and rushed. There were a lot of shortcomings - no mentions of contributors’ track-records, deliverables, in-depth compensation, etc - just a no-questions asked continuous outflow into contributors.
It seems ludicrous to me to propose such high salaries paid out daily (!) for an 11-person team in just a 800-word post.

Regardless, I’m not here to rip on the project. This is the limited research I’ve done on it and it made me question the legitimacy of the project. As with anything - I suggest everybody DYOR - I just wanted to shed some light on what I’ve found.

I support this ! The badger team is great!