Badger user activity grows 300%
Badger is strongly contributing to the use of Bitcoin across the decentralized finance (DeFi) sector on the Ethereum blockchain. Even though there’s a lot more activity on Ethereum thanks to the DeFi boom, Bitcoin is generally still considered digital gold. In the past month DeFi platform, Badger has grown 300% from approximately 500 active wallets per day to more than 1500 wallets.
Badger is a decentralized finance protocol that wants to make Bitcoin part of the DeFi ecosystem on Ethereum. Where other similar products like Compound have a steady amount of daily active wallets, Badger is clearly showing growth. Putting emphasis on the demand for more financial tools on the blockchain that tap into the value of Bitcoin.
Badger Finance offers two tokens:
- BADGER – the governance token for the platform
- DIGG – a token tied to the value of BTC
The surge in active wallets isn’t only because of the services, but also because of the announced airdrop for DIGG.
The DIGG token has been distributed to users of the Badger platform, and in addition, serves as a reward for liquidity providers who stake their liquidity tokens. Ultimately there are two user groups that earn DIGG.
The first one is the group that provides liquidity for wBTC-BADGER, and the second group provides liquidity for wBTC-DIGG. Providing liquidity means that users put their tokens, in this case, wBTC and either DIGG or BADGER, into a liquidity pool. This allows other users to trade for example their DIGG for wBTC or the other way around. Platforms like Uniswap and Sushi Swap offer those types of services.
The value of DIGG is constantly readjusted so that it remains pegged to the value of BTC. In order to achieve this, DIGG has an elastic supply. This means that the amount of DIGG someone receives fluctuates based on the price difference between DIGG and BTC.
If DIGG becomes less valuable than BTC, they will decrease the rewards (negative rebase). However, when DIGG becomes too valuable, the rewards will increase (positive rebase). Through rebasing the rewards, the Badger DAO wants to keep the value of DIGG equal to the value of BTC.
Currently, Badger Finance is one of the rising stars in the world of decentralized finance. Not only is Badger seeing a serious increase in active wallets, but also the transaction value in millions of dollars is increasing steadily.
Sure, the platform is still far removed from the established decentralized platforms like Compound, but the platform seems to be well-positioned with its aim to integrate BTC more into decentralized finance on the Ethereum blockchain.