BadgerDAO treasury council member here.
Besides the excellent quantitative analysis by DefiLlama, I’d like to add a couple more qualitative points here. Mostly to speak to ChaosLabs’ concerns around community alignment and revenue potential.
BadgerDAO has been active in the DeFi space since late 2020, and has grown to a community of 30,000+ token holders since then. Over the lifetime of the protocol, BadgerDAO has integrated with other DeFi platforms, including but not limited to Uniswap, Curve, Convex, Balancer, Aura, Frax and Euler. There is both a demand for lending and borrowing in our community, depending on the type of user. Many users holding the BADGER token are utilizing various liquidity providing activities on the mentioned platforms, which has created borrowing demand. Volume is of course hard to estimate, but the initial 100k BADGER deposited by the treasury on Euler had over 50% utilization within the first few weeks. BadgerDAO is expecting an increase in volume once listed on the Aave platform, given its longer track record, depth of liquidity and wider user base.
The BadgerDAO treasury is in a healthy state to provide a runway for future development and can continue the protocol for years to come. The DAO is currently in active development of eBTC, a Bitcoin token on Ethereum, which again will provide future opportunities for the BADGER token. Please find the introduction post to eBTC here: Introducing eBTC - A Decentralized Bitcoin Powered by Ethereum Staking - General Discussion - BadgerDAO
Lastly, I understand DefiLlama’s request for feedback from ChaosLabs to be more geared towards their risk parameter choices, which I do not see mentioned in your reply. Besides the very general concerns you raised, do you see any issues with their proposed configuration?