Badger DAO Brings Bitcoin to DeFi.
What is DeFi?
DeFi is short for “decentralized finance,” a general term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
DeFi draws inspiration from blockchain, the technology behind the digital currency bitcoin, which allows several entities to hold a copy of a history of transactions, meaning it isn’t controlled by a single, central source. That’s important because centralized systems and human gatekeepers can limit the speed and sophistication of transactions while offering users less direct control over their money. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
Bitcoin and many other digital-native assets stand out from legacy digital payment methods, such as those run by Visa and PayPal, in that they remove all middlemen from transactions. When you pay with a credit card for coffee at a cafe, a financial institution sits between you and the business, with control over the transaction, retaining the authority to stop or pause it and record it in its private ledger. With bitcoin, those institutions are cut out of the picture.
Bitcoin In DeFi Via BadgerDAO.
Many would argue that Bitcoin is the soundest method of exchange or collateral ever invented. Bitcoin usage in DeFi used to be confined to the tiny ecosystem on the Bitcoin network until protocols emerged, allowing Bitcoin holders to wrap their BTC on Ethereum. Since then, the amount of BTC on the Ethereum blockchain has grown significantly.
Thus, with the rise of DeFi and Bitcoin’s potential role in it, an innovative team was motivated to create Badger DAO.
What Is Badger DAO?
As you may know, the term DAO stands for decentralized autonomous organization. What’s more, Badger DAO strives to build the infrastructure and products necessary to accelerate Bitcoin’s use across Ethereum and other blockchains.
Badger DAO was created with a simple premise, to create a decentralized network to enable bitcoin with DeFi applications. With most DeFi applications being built on ethereum, wrapping bitcoin involves a certain level of expertise.
Badger DAO makes it simple to interact with dApps using bitcoin. It allows crypto users to deposit and earn on their bitcoin. Badger DAO has seen massive adoption since its December 2020 release. It has already accumulated over $846 million in TVL.
It’s meant to be an ecosystem DAO where projects and people from across DeFi can come together to collaborate and build the products our space needs. Shared ownership in the DAO will allow builders to have aligned incentives while decentralized governance can ensure those incentives remain fair to all parties. The idea is less competing and more collaborating.
That’s why it’s important that it starts as a community-led initiative from day one. Any decisions are made through a governed vote including what, how, and when Badger DAO products are created. Equally important is ensuring there is a fair distribution of $BADGER to give all participants the opportunity to get involved and benefit.
This forms the pillars of what ensures Badger always remains community first, fair and transparent.
- Badger Builders,
- Community-created products.
- Dedicated Badger operations team
- Fairly initial distribution of $Badger Tokens for governance
- All code open-sourced
BadgerDAO products can be obtained with Bitcoin to earn BadgerDAO tokens as they are the only way to earn on the platform. Badger is a DAO that creates Bitcoin-focused products, and it’s important that when $Badger distribution occurs there is an actual product to govern. Beyond governing it, Sett will be the only way for people to earn $Badger.There are only two products from BadgerDAO yet, SETT and DIGG.