Badger

Yield Aggregator

Badger is a multi-chain protocol creating an ecosystem of products to enable DeFi applications for Bitcoin. It is the first DeFi platform that focuses on BTC as the main reserve asset.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Bader has developed infrastructure and products to simplify the use of Bitcoin on the Ethereum network.
What we like less
BTC on Badger are synthetic or wrapped assets (non-native) and prone to greater centralization and smart contract risk.
What it means for you
Offers you a set of products to earn yield on BTC through staking vaults and automated strategies.
Information
Exploit/Hacks
One
Info
  • Website
  • Token: BADGER
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $33.8M (Rank #103)
  • TVL Ranking by Yield Aggregator: #5
  • Blockchain: Ethereum, Arbitrum, Polygon, Binance, Fantom
  • Chain TVL
    • Ethereum: $33.41M
    • Arbitrum: $418.28K
    • Polygon: $320.67
    • Binance: $0
    • Fantom: $0
Risk Assessment
Good
Protocol Code Quality
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one critical governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Badger

How Badger works

Badger consists of an ecosystem of products and infrastructure to accelerate the adoption of BTC as collateral in DeFi. The protocol's first product, Sett Vaults, allows users to earn yield on synthetic BTC assets. Setts are liquidity pools where users can deposit their tokenized BTC assets to earn yield from automated yield strategies. Users that deposit into Sett Vaults receive bTokens in return. These bTokens are interest-bearing tokens that represent the user's share of the assets in the Sett Vault. Badger's second product, Digg, is a smart contract that manages the DIGG token, an elastic-supply asset that is pegged to the price of BTC. Digg automatically adjusts the supply of DIGG to expand or contract the circulating supply of DIGG in order to attempt to mimic the price of BTC. If demand is high, the price of each DIGG token may exceed the price of 1 BTC so the Digg protocol automatically increases the supply to bring its price back to parity with the market. And vice versa, if demand is low, the protocol decreases the supply to drive the price up through greater scarcity. Lastly, ibBTC or interest-bearing BTC is another BTC pegged asset that was built in partnership with DefiDollar. The difference with ibBTC is that it is a fully collateralized asset that is backed by major BTC-pegged assets including WBTC, renbTC, sBTC and tBTC.

How Badger makes money

Badger generates revenue by charging fees to use its products. Currently, the protocol only charges fees related to its Sett Vaults. For vault users, there is a withdrawal fee of 0.1% and performance fees ranging from 10 to 20%.

How you make money on Badger

You can stake your synthetic BTC assets into Sett Vaults to earn yield on BTC through automated strategies. You can further boost your yield by holding native Badger assets (BADGER, DIGG) in your wallet or in Sett Vaults.