The goal here is to build one of the most developer-friendly communities that's focused around creating amazing products and infrastructure.

 - Chris Spadafora

What is Badger DAO?

In this strategize session, Chris Spadafora walks us through some of the philosophies behind Badger DAO, the goals they're trying to achieve, and the investment strategies they're aiming to build. Let's simplify this a bit for those who are newer to DeFi. Even though this write-up is a bit of a throwback at this point, let's not exclude the newbies... well, let's not do it on purpose.

Badger DAO is a yield aggregator focused on earning yield on your Bitcoin (BTC). And what is a yield aggregator exactly? Yield aggregators enable you to engage in "yield farming" - a process by which an investor locks up or stakes crypto funds into a smart contract within the protocol. In return for staking an investment with your chosen smart contract, you're provided with an estimated ROI. Frequently, this includes returns in governance tokens for allowing the protocol to utilize your liquidity in various ways. In the most simple terms possible, yield farming allows you to make more crypto with your crypto by putting your money to work for you.

Anyhow, Badger DAO's principal goal is to build products and infrastructure to bring Bitcoin to DeFi. If you aren't aware, Bitcoin, while a wonderful store of value, is not able to interact directly on the Ethereum blockchain - the place where EVERYTHING BIG is happening in DeFi. This is a problem for BTC investors who are essentially stuck in the speculator market. Because Bitcoin was not built with a complete DeFi ecosystem in place it does not yet have the same utility as fiat currency. Again, it's a fantastic form of money and an amazing store of value, but it just sits around collecting dust for the most part. Creating ways to get Bitcoin onto the Ethereum blockchain allows investors to begin earning rewards on their investments. And that's exactly what Badger DAO is doing!

Earning With Badger - The Sett Vaults

The Sett Vaults are Badger's name for their various investment strategies created to yield high returns for their investors. And before you ask the question "why Sett?" here's the answer... Badgers' dens are known as setts. They are strong fortresses for these resilient animals and due to their strength, they're able to be passed down from generation to generation. So I'd say the name is quite fitting. Anyhow, Badger's Sett vaults put your investments to work across different protocols with the goal of creating the best yields possible. Frequently, a user will deposit coins into a protocol, get liquidity provider (LP) tokens, deposit those into Badger, and then the protocol takes over. In other words, Badger will begin investing, harvesting, and reinvesting your yields for you.

For example, you can choose to invest in the Farm vault, Pickle vault, Badger/wBTC vault, etc. And depending on which vault you put your funds into, a separate investment strategy will be applied. Oftentimes, Badger utilizes other protocols to pool resources together, earn larger yields from their rewards, and reinvest. Additionally, you may also earn the Badger Token and DIGG Token as part of your rewards for contributing.

Of course, Badger offers multiple attractive incentives to remain invested in the Setts. In some cases, your rewards multiplier may be reset if you withdraw completely from the vault. However, in most cases, you'll be able to claim rewards without completely withdrawing. When and how often you claim your rewards depends on the investment strategy you choose. So make sure to research your options and make the choice that's best for your long and short-term investment strategies. Ultimately, the goal is to auto-compound for the investor, save time, save gas fees, and bring in impressive returns. Badger is dedicated to building a community-governed, developer-friendly ecosystem that's sustainable.

The greater experiment here is not necessarily around the individual products. It's about building something sustainable - a community that's able to collaborate in a decentralized way. That's the greater vision.

 - Chris Spadafora

 

A Final Note

As this project has grown and developed tremendously in a short time, it's best to watch the video above while also taking a look at the current Sett Vaults offered by Badger to see what their latest offerings and strategies entail.

If you're ready to dive in, the official Badger APP can be found here.

 

Until Next Time

The crypto world is an ever-changing ecosystem. A living, breathing beast. A force to be reckoned with. And best of all, a rich environment with boundless opportunity. Keep yourself in the know and stay up to date on the latest in Crypto and DeFi. How? By following me of course!

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Until next time,
   - Gabriel Haines -