Today, the Bitcoin-on-Ethereum income vault project BadgerDAO and the other income vault platform Yearn.Finance announced a partnership aimed at bringing Yearn’s expertise in sustainable vaults to Badger.
“Today we’re excited to develop a partnership that will bring our teams together to further accelerate the industry’s best BTC safes for the industry,” BadgerDAO said in a blog post. “This is a step in further securing user funds as we continue to offer our users more safes designed, maintained and secured by Yearn.”
Badger will migrate its current synthetic Bitcoin vault balance to Yearns and the Yearn vault will appear in the Badger app. Additionally, the two protocols work together to create a new WBTC vault. The fees from the vaults are split between the Badger and Yearn protocols.
The partnership between the income vault projects achieves two goals: ensuring sustainable income for roof vaults and providing meatier compensation for Yearn strategists.
Currently, much of the revenue from Badger vaults is supported by the issuance of $ BADGER, BadgerDAO’s governance token, and $ DIGG, a synthetic Bitcoin that is newly based. These returns are limited, however, as only 21 million BADGER and 4,000 DIGG are currently to be minted. Eventually the yields will dry up.
In their announcement post, BadgerDAO stated that by partnering with Yearn, they can build high-yielding vaults without the distribution of governance tokens – ultimately a more sustainable model.
“Strategies created by Sehnsucht help because Sehnsucht v2 focuses solely on sustainable, unsubsidized returns,” said Palmer, a soon-to-be core member of BadgerDAO. “We are connected to Andre in the train of thought. It’s best to work with the best in niches. Longing is the best part of unsubsidized strategies. “
In return, Yearn vault strategists who are announced to be “the best in the world” will receive an additional reward from Badger’s Developer Mining Program, a $ 258 million fund designed to encourage developers to join Badger, in addition to their normal vault service fee to build.
“Our goal is to create positive cash flow products. We can’t spend badger / digg forever, ”said Chris Spadafora, founder of BadgerDAO. ” […] Supporting the remuneration of strategists through our developer pool ensures that developers receive incentives and are rewarded. “
