Shaurya Malwa · 19 hours ago · 2 min read
Badger DAO, a decentralized finance (DeFi) protocol on absorbing bitcoin liquidity on Ethereum, recently announced a partnership with Yearn.finance.
Badger DAO launched in December as a project looking to drive the adoption of Bitcoin (namely tokenized Bitcoin iterations such as WBTC and renBTC) on Ethereum. The project has seen immense traction thus far, garnering over $2 billion worth of deposits as of the highs yesterday.
The project’s native coin BADGER has been on a tear over the past few weeks, moving as high as $80 from its lows in the $5 range.
Badger DAO unveils partnership with DeFi powerhouse Yearn.finance
Badger’s core team just unveiled that it will be working closely with Yearn.finance to bring value to the project’s Bitcoin vaults, which allows depositors to earn additional capital on their initial capital.
“Today we’re excited to develop a partnership that will bring our teams together to further accelerate best in class BTC vaults for the industry. This is a step to further secure users funds as we continue to introduce more Yearn developed, maintained and secured vaults to our users.”
Excited to announce our partnership w/@iearnfinance to bring the best in class BTC vaults to the industry!
Together we can give users the most innovative yield strategies while upholding the highest level of security.
Read the details 👉 https://t.co/DUiOTqS2K4
Thread 👇 pic.twitter.com/NQjGIrz1ZP
— ₿adger DAO 🦡 (@BadgerDAO) February 10, 2021
The protocol’s developers see this as critical as this will help drive longer-term value to the depositors in vaults, as opposed to the current state of the vaults, which are largely being subsidized by BADGER and DIGG rewards, which are distributed to depositors to incentivize participation.
This partnership will mean that Yearn developers will be able to create Bitcoin vaults, which will be incentivized with Badger and DIGG rewards.
This partnership will allow both communities to “share in the net revenue from these vaults based on the total TVL that Badger brings.”
BADGER is stagnant over the past 24 hours, trading 0.1 percent down. This means the Ethereum-based coin is outperforming BTC by three percent.
Yearn.finance (YFI) is up 2.5 percent in the past 24 hours and is outperforming Ethereum by 5.5 percent, per CryptoSlate data.
More to come
This partnership comes as the hype has begun to grow about Badger DAO’s next product, CLAW.
CLAW will be a stablecoin that will be collateralized by deposits into Badger DAO’s vaults. This means that users can deposit capital into Badger DAO, earn a yield on that deposit, then take out a stablecoin to trade or to use in different facets of DeFi:
“It is a stablecoin that you mint after using one of our Setts as collateral and is in collaboration with UMA. The current cap on how much can be minted is $1b. Unlike DAI, Claw will have an expiration that will be a fixed term, from release.”
Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in assets mentioned in this article. The views displayed in this article are opinions of the author—and the author only.