DeFi

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BadgerDAO is a decentralized autonomous organization building the infrastructure necessary to allow the use of Bitcoin as collateral across DeFi blockchains.

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Bitcoin’s dominance in the fintech space cannot be underestimated. While 

 has been used largely as a store of value, there’s been a growing practice of using it on blockchains such as 

This has opened up the asset to the lucrative world of 

 (DeFi), where holders can earn interest and use Bitcoin as collateral to borrow assets.

However, along with the evolution of the global financial landscape via DeFi, there’s been an influx of projects that aren’t backed by any intrinsic value. Moreover, the infrastructure and protocols that allow you to bridge BTC to participate in DeFi opportunities are still relatively immature and highly centralized.

It’s against the backdrop of these challenges that BadgerDAO was born. Let’s take a deeper look at the project, and its efforts to entrench Bitcoin into DeFi.

 (DAO) that’s building the infrastructure necessary to allow the use of Bitcoin as collateral across DeFi blockchains.

Launched in 2020, BadgerDAO has provided a community-led ecosystem to build products through shared ownership and aligned incentives to promote fairness.

As a fair and transparent platform, its key pillars are the Badger Builders, community-created products, governance through fair distribution of Badger tokens and the full open-sourcing of all its codes.

BadgerDAO’s community makes all decisions through consensus and 

 DAO.The project has expanded its assets beyond Bitcoin to include tokens such as ETH and 

BadgerDAO’s primary token is BADGER, which is used for governance, 

 and as collateral across DeFi platforms.

BadgerDAO operates a DAO-based ecosystem in which all of its products are ideated and passed by its community through the support of an operations team and the DAO treasury.

Some key elements of BadgerDAO are as follows.

One key component of BadgerDAO’s operations are its vaults. Borrowed from 

’s concept, Badger vaults allow you to deposit assets in order to earn optimized yield through leveraged opportunities in various DeFi protocols, known as 

. The vaults are powered by smart contracts, and users can withdraw their funds anytime from some of them. When you deposit your tokens into the vault, you’ll receive b-tokens (e.g., bBadger) to represent the amount you’ve deposited, usually in a 1:1 ratio.

DIGG is an elastic supply token pegged to Bitcoin’s price. By depositing DIGG in a vault, users receive bDIGG tokens, which don’t rebase and can be used as any other ERC-20 token across DeFi protocols.

While DIGG isn’t a stablecoin, it mimics BTC and uses a non-dilutive, continuous rebase to ensure fairness and transparency. DIGG tokens are also bound in price between 0.95 BTC and 1.05 BTC, which helps ensure elastic supply.

Interest Bearing Bitcoin (ibBTC) was launched in collaboration with 

. It’s designed to serve as the tokenized version of Bitcoin on Ethereum, allowing users to generate interest from it.

, it can be collateralized, lent out or bridged to other chains. The ibBTC token can be minted on the 

 using different assets such as byvWBTC, bCrv RenBTC and bCrv BTC.

BADGER is the native token of the BadgerDAO ecosystem. As a 

 token, BADGER plays a crucial role in the collective governance and incentivization of the BadgerDAO community. Holding BADGER allows you to vote on proposals for new product ideas on the platform.

 proposal. Those who hold BADGER tokens in select vaults and are willing to participate in community voting receive more BADGER rewards as determined by a stake ratio.

Furthermore, you can use BADGER to participate in yield farming across numerous DeFi protocols such as 

 through a hack totaling approximately $120 million. The hacker is said to have injected a malicious 

 from Cloudflare, a cloud network on the platform. 

 keys, the hacker periodically injected malicious code to exploit several customers on the DeFi platform.

However, following this front-end exploit, BadgerDAO carried out a series of activities to try to recover the funds and prevent another such incident in the future. The operations team contacted the relevant authorities and cooperated in the recovery process.

BadgerDAO also updated the Cloudflare account password and deleted/refreshed the API keys.

The project has engaged both Chainalysis and cybersecurity firm/Google subsidiary Mandiant to conduct comprehensive reviews to improve security on the platform. Consequently, almost 40% of the affected customers have recovered 100% of their funds. The community has also developed a thoughtful plan to restitute the rest.

As of Apr 25, 2023, BADGER is at $2.65, a 28.27% increase from its all-time low (ATL) and 97.02% lower than its all-time high (ATH). BADGER’s ATL was on Dec 29, 2022 at $2.07, and its ATH was on Feb 9, 2021, when it hit $89.08.

Experts are bullish about the future price of BADGER tokens. 

 is $9.14, with the possibility of hitting $27.92 by 2030. 

 in the long run, anticipating BADGER’s price at $$9.03 in 2025 and rising to a maximum of $61.18 in 2030.

While these price predictions seem bullish, they aren’t financial advice, and we highly recommend that you do your own research before investing in BadgerDAO or any other 

Despite a generally tough 2022, BadgerDAO has been relentlessly building products powered by its DAO-business approach. Its treasury sustained a remarkable revenue through 2022, and its performance report is publicly available to ensure transparency.

As mentioned above, BadgerDAO has devised a comprehensive restitution strategy to make amends for the damages caused by the 2021 hack. This involves the creation of the 

, which will allocate $2 million worth of BADGER tokens toward compensating those who lost funds. 

As such, BadgerDAO’s community-based approach to investing in DeFi protocols and organized Badger team make the project attractive to investors, and could yield a good return in the future.

The DeFi niche is poised to keep expanding. Its offerings are becoming increasingly sophisticated and responsive to the market's needs. BadgerDAO has the suitable infrastructure to help Bitcoin holders use BTC to take advantage of the lucrative opportunities presented by various DeFi protocols. Its functional DAO-powered ecosystem provides a decentralized governance and transparent system for building products. Badger DAO is definitely a project to watch, especially for its unique approach to leveraging DeFi to earn yields for its users.

Badgerdao (BADGER): Expanding Yield Across DeFi Protocols

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