Badger DAO’s launch of DIGG, a synthetic rebasing asset used to track Bitcoin price, is one of the highly anticipated product releases in recent DeFi recollection – but the person most excited about DIGG coming to market , may not be a dealer. but Badger DAO founder Chris Spadafora himself.
According to community-oriented Spadafora, who would quickly find out that he doesn’t like the “Founder” label despite its technical truth, the anticipation of the launch has led to more than one “Badger” request on Twitter addressed to him is directed.
“You’ve probably seen it … ‘If $ DIGG, if $ DIGG’ – it’s constant,” Spadafora sighed.
Despite all the excitement, the exact date of the launch is still unknown. In an interview with Cointelegraph on Tuesday January 5th, Spadafora said that DIGG should be released “within a few days”. However, on a community call on Friday, he pushed that timeline back, saying users could expect DIGG “sometime next week” – a series of delays that only fueled the passions of the Twitter crowd.
who $ bDIGG? who $ CLAWS?
so many questions.
We need answers.
whom ???
– coin.profit (@ C0inAlchemist) January 10, 2021
Even so, Spadafora has largely remained in a good mood when it comes to “badger fishing”, knowing it is rooted in an eager community ready to play the latest algorithmic asset game.
However, he’s excited about the launch for another reason: He believes that when all of the impending stabilization mechanisms are in place, DIGG could become more than just another spin on the rebase casino and could even become a true synthetic Bitcoin asset.
Hold a proper pen
It’s hard to get to. So far, algorithmic assets such as algorithmic stablecoins have proven to be great ways for savvy game theorists to enrich themselves, but inefficient when it comes to holding their intended pens.
To that end, Spadafora and the rest of the team took inspiration from previous rebasing experiments like Ampleforth.
“We believe the secret sauce learns from what AMPL has done in terms of liquidity and then adds the automated vaults,” said Spadafora.
The Ampleforth model is a proven model (at least according to DeFi standards) that has gone through over 600 rebases to date. Success was significantly accelerated when they developed the “Geyser” that would allow users to deposit their AMPL into a pool of liquidity for additional token returns.
However, adding vaults on top of that is a novel step that can be beneficial for both tenon stability and users.
“What we want to do with our vault system is really spacious, let’s be … let’s call it the” buy-and-sell “dictators. So automated strategies allow us to buy when the time is right and sell when the time is right to optimize returns for users. ”
Indeed, a DIGG vault would automatically and programmatically play the token economy “games” that other algorithmic asset projects expect users to play with bonds or coupons. Right now, Badger’s vaults are worth $ 700 million – a huge pool of automated, return-generating liquidity that could come into play to peg the price of DIGG to BTC.
Spadafora informed Cointelegraph that the DIGG safes and their strategies would ideally start “a few weeks” after the DIGG token was launched and that additional stabilization measures, such as B. Vault rewards, which vary depending on the proximity of the DIGG to the pen, also works in the.
In the end, however, the community itself is the best resource Badger DAO could bring to the stabilization effort. Spadafora said the DAO will have the option to tweak mechanics like rebase time or even come up with a completely different model for the token if the plans the team brings to the table don’t work. Such community-led operational efforts have proven successful on projects like Synthetix.
“We are handing all DIGG parameters and control over DIGG into the hands of the BADGER token holders. All parameters – you want to switch to a different model, you want to change the rebase time, you want to do everything that comes with it – that is within the control of the community. ”
Big offer?
Even if DIGG manages to properly track the price of Bitcoin, it is an open question how much market appetite there is for more Bitcoin on Ethereum. BTC at ETH has peaked in the past few weeks and has fallen below 150,000 BTC for most of 2020 after parabolic progress.
DIGG’s launch is expected to bring a total of 4000 BTC to market, although only 15% of the supply will be available on day one, according to Spadafora – around 580 tokens. Half will be allocated to the Badger Treasury and another 30% will come to market over a period of several weeks as part of a liquidity mining event. But aside from the issuance plan, would anyone even want a different bitcoin source on Ethereum?
Spadafora thinks so. He describes Bitcoin as “the ultimate security” and says that a long-term goal is for Badger to flip the stack – instead of Badger being the endpoint in a cycle of smart contract transactions (wrap BTC, combine WBTC with Ethereum, deposit pool tokens in Badger for yield) it would be more of a base layer
“If groups like us can say,” Oh, you can unlock this illiquid position and borrow to develop additional strategies, buy and buy more Bitcoin, put that stable coin somewhere as liquidity, or just buy new – Invest that in our safes and increase your APY in the Badger app. That’s where things get interesting. ”
“As soon as these things open up, I see a lot more people wanting to bring more token bitcoin to Ethereum because they will have more uses.”
One way to accomplish this is to allow users to borrow assets against staked liquidity pool and vault positions – likely with a stable coin called $ CLAW.
Badger Buck https://t.co/ABTsEFhFMY
– straight DAO (@BadgerDAO) January 10, 2021
As a result, some clever Badger DAO fans are already looking past DIGG and looking at the potential of taking out stablecoins in exchange for their positioned DIGG safes. The question for you now is “Who CLAW?”
Long-term security
Bringing all of these new products into the DeFi ecosystem is a development burden, but Spadafora says responsibility for a locked total value of nearly $ 1 billion weighs on him more than depletion.
“Those last five weeks have been probably the most stressful five weeks of my life,” he admitted.
After all, it’s hard to sleep when “you don’t know what you don’t know” and you’re building a hugely successful project in a room full of hacks, exploits, and vulnerabilities. Additionally, the complexity of Badger’s interacting systems – farms, vaults, a rebasing token, liquidity pools, etc. – provides layer after layer of intelligent contract risk.
To that end, the Badger DAO team is at the forefront with a variety of security processes that Spadafora believes will become the standard.
First, Spadafora says the team conducted what is known as a “non-intelligent contract security audit”. This included internal guidelines on how developers deal with updates, changes to the web app UI, and mitigating things like spear phishing attacks. The most important development, however, is the “Badger War Room”.
Many of the recent exploits in the past few months have had half a dozen to a dozen white hat hackers congregating to try to replicate attack vectors and then mitigate them. The “War Room” aims to create the same ad hoc group from the start, with a contract management and repository system that makes it easier to unravel potential exploits.
According to Spadafora, the team also integrated all War Room participants into Badger’s systems, pre-designed a test environment, and established multiple communication channels and a schedule of vigilance and availability to respond to an attack.
It is a system that has been developed with the reality in mind that it is impossible to predict where the next exploit might come from, but one that has been developed to better analyze and possibly to the damage that such an exploit could cause to reduce.
Given that the project has barely run for more than a month, the progress is remarkable. In the end, however, Spadafora hopes anything could help create a new, sustainable niche in DeFi:
“I think it will change the way people think about algorithmic stablecoins.”
