BadgerDAO and UMA Collaborating to Create Exclusive Liquidity Pools on SushiSwap

By Abhimanyu Krishnan | News | 29 Jan 2021


On Jan 28., BadgerDAO co-founder Chris Spadafora published a proposal that would see BadgerDAO and UMA collaborate to create exclusive liquidity pools for new synthetic stablecoins on SushiSwap. 

  • BadgerDAO and UMA are currently working to let users mint synthetic stablecoins sCLAWS and bCLAWS which can then be used in Sushi LPs or Badger positions in the Badger Sett Vaults
  • The ultimate goal of the collaboration is to partner with SushiSwap so that users can exclusively earn interest while borrowing against their vault positions
  • These vaults will have special restrictions, including a cap on total deposits, an 8 week operational period, a minimum APY threshold when at full capacity, and strict entry requirements
  • Selection criteria includes wallets with Badger NFTs, and the time for which bBadger and bDIGG has been held
  • BadgerDAO hopes to partner with SushiSwap to establish these pools, which could result in users earning Badger, DIGG, UMA and xSUSHI 
  • On Twitter, the co-founder provided a summarized explanation of the motivation behind the collaboration, saying that it was important to bring utility to users by unlocking value in BTC LP positions
  • He expects that the new LPs could result in a large inflow of funds and provide a competitive advantage for the exclusive nature as the LP positions could be used to borrow the CLAWS stablecoin
  • Spadafora also confirmed that the underlying technological developments are nearing completion, with more such launches also envisioned

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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