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BadgerDAO Partners With Yearn Finance to Develop Secure Bitcoin Vaults

2 mins
Updated by Ana Alexandre
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In Brief

  • Secure BTC vaults coming to Yearn via BadgerDAO.
  • Liquidity rewards announced for tokenized bitcoin deposits.
  • BADGER surges 65% over the past seven days.
  • promo

Decentralized finance (DeFi) protocol BadgerDAO has teamed up with yield aggregator Yearn Finance to accelerate the development of bitcoin (BTC) vaults for use in DeFi.

The partnership, announced on Feb. 11, aims to bring Yearn Finance’s sustainable vault expertise to Badger. It added that it is a step to further secure users’ funds, as the protocol continues to introduce more Yearn-developed, maintained, and secured vaults to its users.

The announcement stated that security was a big priority going forward and it wanted to rely less on token rewards to generate yield for users.

“With over $2.3 billion deposited in our vault product it’s critical we collaborate with protocols like Yearn to further secure our vaults while continuing to innovate.”

Bringing Bitcoin to DeFi

Badger’s flagship product is the Sett vault in which users can deposit different types of tokenized bitcoin, such as wBTC, renBTC, or tBTC, to generate an automated yield. Its second product is DIGG, a synthetic rebasing of bitcoin using an elastic supply cryptocurrency that is pegged to the price of BTC.

The blog post added that Yearn-developed BTC vaults will be presented in the Badger app and be incentivized with BADGER and DIGG rewards which are claimable every two hours. Existing Sett vaults will be migrated to Yearn which will allow Badger to benefit from boosted CRV rewards, while sharing in fees that are not currently available for that vault.

The two DeFi protocols will also collaborate to build a new WBTC vault, with the fees from the new vaults being shared between the Badger and Yearn protocols.

Developer rewards are also high on Badger’s priority list, and it stated that 15% of the total supply of tokens will go to the Badger developer mining program, which is currently valued at $258 million. CoinGecko reports a circulating supply of BadgerDAO’s governance token at 2.5 million out of a maximum of 21 million.

BADGER Token Price Update

That governance token has made a minor gain over the past 24 hours to reach $80, which is just off its all-time high of $87 hit on Feb. 9.

Over the past seven days, BADGER has made around 65% and its monthly gain is a monumental 900%. At the beginning of this year, the token was trading at just $7.50.

In terms of collateral locked, DeFi Pulse reports that BadgerDAO has surged into eighth place with a TVL hitting an all-time high of $2 billion.

YFI meanwhile, has dropped 6% on the day to trade at around $36,000.  

Top crypto platforms in the US | March 2024



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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...