ARC: Add Support for bBADGER (BadgerDAO) as collateral

Rational

We would like to make a proposal for Aave to support bBADGER as a collateral asset. We think being able to lend and borrow bBADGER on Aave would open up several exciting opportunities for both Aave and Badger.

References

Paragraph Summary

Badger is a governance token while bBadger is the token that represents one’s position in the Badger Sett on app.badger.finance and is indicative of a user’s partial ownership of the assets within the vault.

Currently, the TVL across all Setts is $[2.2b] (app.badger.finance), primarily in BTC via CRV LP tokens and our wBTC paired vaults.

We Propose AAVE lists the output token of the Badger Sett, bBADGER as collateral on AAVE V2 for borrowing and lending.

Motivation

Connect Badger’s User Base to aaves: Badger brings along with it a vibrant community of [9,500] holders (source) and [11,000]+ community members, known as Badgers, on Discord.

Increased TVL for Aave: This proposal will allow the Aave TVL to expand and will allow the Badger community to borrow other Assets against their $bBadger tokens, and further build out the DeFi “lego building block” stack and allow 9,500+ bBADGER holders to earn an additional layer of yield through borrowing and lending.

Specifications

  1. What is the link between the author of the AIP and the Asset?

  2. I am BitcoinPalmer a member of BadgerDAO

  3. Provide a brief high-level overview of the project and the token

  4. Badger is a decentralized autonomous organization (DAO) focused on building the products and infrastructure necessary to accelerate Bitcoin as collateral across other blockchains. Specifically, it is an ecosystem DAO where projects and people from across DeFi can come together to collaborate and build the products DeFi needs. Shared ownership in the DAO incentivizes builders to have aligned objectives while decentralized governance ensures that those incentives remain fair to all parties and that the projects pursued are determined by the community.

  5. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

  6. The current yield on bBadger stands around [85]% APY with over $[275m] locked in the Sett Vaults, making this an ideal productive asset as collateral.

  7. Provide a brief history of the project and how it overcame stressed conditions

  8. The BadgerDAO was bootstrapped by the seeding team before launching an Early Contributors Program in october of 2020. This led to Badger’s first two products, the Sett, an automated DeFi aggregator focused on tokenized BTC assets, and Digg, a non-custodial synthetic Bitcoin on Ethereum. Sett was launched on December 3, 2020, and Digg was launched on January 22nd, 2021. Since then Badger has overcome the native issues with creating a DAO structure, and non critical UI/UX bugs on the Sett vaults. We rallied our badgers to provide alternative community UI while the core team worked on issues with the native app. Our saving grace to overcoming obstacles is and will always be our community.

  9. How is the asset currently used?

  10. bBADGER is the productive asset of the Governance token (BADGER) aside from this core function, bBADGER has been listed on CREAM for borrowing and lending.

  11. Emission schedule

  12. BIP 26. Badger/DIGG Emission Plan Part III: Liquidity Mining Program Extension. - BIP | Badger Improvement Proposals - BadgerDAO

  13. Token permissions and upgradability

  14. Badger contracts are upgradeable under multisig which is behind a 48 hour timelock and 5/7 signer at the address: 0x21CF9b77F88Adf8F8C98d7E33Fe601DC57bC0893, there are no permission related blockers to usage of bBADGER as a collateral asset unless there is a requirement to interact w/ the bBADGER vault.

  15. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

  16. Market Cap: $147,942,328

  17. 24h Volume: $43,553,651

  18. 7 Day = -24%, 30 Day = 366.2%

  19. Sushiswap, Uniswap, Huobi Global, FTX, OKEx, Hoo

  20. 75 Days on market

  21. Social channels data (Size of communities, activity on Github)

  22. [9,500] holders (source) and [11,000]+ community members

  23. Pulse · Badger-Finance/badger-system · GitHub

  24. Contracts date of deployments, number of transactions, number of holders for tokens

  25. Nov-28-2020

  26. 216,923

  27. 9890

Technical Specifications

Security Considerations

Poll

Add bBADGER as collateral to Aave?
  • Yes
  • No

0 voters

10 Likes

Would love to be able to use my bbadger as collateral on Aave.

4 Likes

yes please list bbadger as colateral

4 Likes

I hold Aave and Badger. I vote for!

4 Likes

Agreed! I’m a big fan of AAVE and BADGER so this would be an excellent opportunity for both communities!

4 Likes

Badger is Defi powerhouse with over $2 billion locked. Aave should absolutely support bBadger as collateral!

1 Like

in total agreement with this proposal, good job !

2 Likes

Yes please! Badger + AAVE would be magical. Badger is just the first step. DIGG is the next… after that CLAWS… the market cap potential is insane here…

1 Like

bBADGER as collateral on Aave is the 1st step to :rocket: mission

1 Like

I’m an Aave and Badger user. I would love to be able to add my bBadger as collateral to borrow against along with my other assets I hold on Aave.

1 Like

Hey @bitcoinpalmer, thanks for this proposition, it would be awesome to be able to borrow with bBadger as a collareral.
Did you ask for a risk analysis by the risk team already ?

2 Likes

Please list bBADGER as collateral on Aave

1 Like

It’s hard not to consider it with such a TVL.

2 Likes

I am hoping the great @Alex_BertoG could provide a risk analysis from Aave! great shouts @Dydymoon

3 Likes

Think this could be a big win for AAVE. The market cap for Badger is $1.2 Billion (total supply) - that could mean a lot of collateral/lending on AAVE going forward. AAVE has always been a step ahead of the competition and adding this large asset, creating significant demand, would be a reinforcement of this.

1 Like

Love the idea. Badger DAO has grown very quickly and has already a great engaged community and adding bBadger as collateral is something that needs careful consideration. I would like to see a risk analysis first though, but in principle I believe that such a partnership would create a ton of value for both communities and the DeFi space in general.

1 Like

YES :+1:

I mean some don’t know but Chris Spadafora and the Badger guys are OG Bitcoiners they are well know by all and understand crypto.

I’m my biggest position is BADGER my second biggest is AAVE need I say more ? LoL

Let’s talk parameters !

1 Like

After an initial assessment of the Aave’s risk framework I feel it would sit somewhere between C to B-
But would love to hear an assessment from Aave’s risk team. @Dc_aave @cryptomooniac @Dydymoon any thoughts from you guys?

2 Likes

Thank you, also went through the framework and agree with you.

In my perspective, BadgerDAO will keep growing to become one of the main projects in the DeFi space. A lot of things in the pipeline for them. Aave is already a top liquidity protocol. I think it will make a lot of sense and add a ton of value, for both projects, to embrace bBadger as collateral.

1 Like

Mr. @bitcoinpalmer i think the initial parameters assessment is very fair.

I agree with them at C to B- (…for now ;)

The greatest @Alex_BertoG and the AAVE team knows ;)

We can always make changes in the future and as much as i want to have more usage , I think being a bit conservative for starts it’s for the better in the longer run.
So many projects in the pipeline for Badger also.

Cheers Everyone :beers:

@BADGER SEND IT !!!
LET’S GOOOO !!!