Badger DAO (Badger) is a decentralized autonomous organization designed to enable the use of bitcoin as collateral across a wide range of DeFi products. Built to ride the wave of DeFi growth starting in 2020 and continuing afterward, Badger addresses the demand for bitcoin inside DeFi platforms operating on Ethereum, Polkadot, Solana, and other blockchain networks.

True to its name, Badger DAO primarily operates as a DAO. At the same time, the ecosystem includes multiple products aimed at helping bitcoin function as a practical asset. Its approach features collaborations with various DeFi projects, including Yearn, Curve, and Ren.

What are Badger DAO’s (BADGER) key features and how does it work?

Badger brings a suite of offerings to the market as DeFi interest continues to climb. These offerings include Sett Vaults and Digg. 

The central product in the Badger DAO lineup is Sett Vaults. These vaults let users deposit over twenty different Bitcoin-linked assets into smart contracts. The protocol then runs automated trading strategies intended to generate yield and higher returns. The exact strategy depends on the specific cryptocurrency and may include lending assets for interest, farming governance tokens from other protocols, or supplying liquidity for traders.

Badger’s second product, DIGG, is a digital asset pegged to the BTC (Bitcoin) price. It runs in a decentralized way and uses an “elastic supply” model. DIGG keeps a flexible peg to BTC through parameters built into its smart contracts. If DIGG trades above 1.05 BTC, a positive rebase occurs and the DIGG amount held in wallets and smart contracts increases. Conversely, if the DIGG price drops under .95 BTC, the supply contracts. 

Keeping DIGG can raise APYs inside Vaults on the BadgerDAO protocol, and DIGG can also be used to supply liquidity to the DIGG-WBTC pool on Sushiswap.

Working alongside Ren Protocol, Badger Bridge acts as a connection between Bitcoin and Ethereum. It has three primary functions: Mint, Mint & Earn, and Release. Mint lets users turn BTC into renBTC or wBTC. Mint & Earn moves BTC from the Bitcoin blockchain into a Sett Vault designed for yield. Release converts renBTC or wBTC from Ethereujm back into BTC on the Bitcoin blockchain.

What can Badger DAO (BADGER) be used for?

The BADGER token is Ethereum based and supports governance for the protocol, along with reward payments within Badger DAO. Those who assist in managing Sett Vaults receive rewards. Anyone holding BADGER can vote on proposals submitted by community members, and greater BADGER holdings translate to increased voting influence.

Where can you buy BADGER DAO (BADGER)?

BADGER can be purchased on the following CEXs and DEXs: