BTC-Focused DeFi Protocol Badger Finance Garners $30M In Deposits

BTC-focused DeFi protocol Badger Finance/Badger DAO garnered $30 million in deposits in the first day after the $100 airdrop as we are reading more in the latest cryptocurrency news.

So far, the decentralized finance space was trending because of all the ETH-focused coins but there are products like Wrapped BTC which performed well as well. However, there’s still a lack of BTC-focused infrastructure and marketing in Defi like Badger Finance. Badger wants to change this and it launched an ETH-based application that is focused on bringing BTC and Bitcoiners by extension to DeFi over the past week. The protocol garnered millions of deposits in the first days of operation.

https://twitter.com/Cryptoyieldinfo/status/1335574838186897410

Like many other Defi projects, Badger’s popularity started with an airdrop. The ETH-based project was announced a few months ago by a small public team of four with the goal to distribute the token called Badger to users that interacted with the tokenized version of BTC like WBTC or have contributed to DeFi by participating in governance or contributed to GitCoin. Because of the vast array of users that have encompassed in the airdrop, the project gained plenty of popularity on Twitter and the tokenized BTC holders.

Even funds like Three Arrows Capital claimed the airdrop and claimed about tens of thousands of dollars worth of coins for free. The airdrop amount differed from the minimum of 20 coins which are valued at around $100. So far, Badger doesn’t have a product except for its staking pools that allow users to earn BADGER for staking or tokenized BTC Curve Finance liquidity provider shares. The five pools garnered more than $70 million worth of deposits according to the platform. Right now, the team is working on a new token called DIGG which will be an elastic supply coin based on ETH that will be pegged to the price of BTC and governed by other BADGER holders:

 “Digg’s rebase of supply is distributed on a 10 day rolling period, based on the direction Bitcoin price is moving, it can be used to hedge against a known increase or decrease in BTC price.”

Analysts in the space are quite excited about the prospects of BADGER allowing DeFi to gain more mindshare among the BTC holders. DeFi analyst CryptoYield noted that Badger and some other projects can bring BTC from the “original chain” to ETH via tokenized products.