The 24-hour increase exceeds 90%. What is the logic behind Badger DAO’s rise?

Original author: Sharon, BlockBeats

The 24-hour increase once exceeded 90%, and BADGER led the rise in Bitcoin derivatives concepts

On November 10, according to CoinGecko data, as of 9:30, the Bitcoin ecological related currency BADGER was quoted at 5.5, with a 24-hour increase of 90.6%. At the same time, according to the Binance increase list, BADGER has become the currency with the highest increase.

Smart Money ambush, Binance boost

In fact, there were clues behind BADGERs current increase as early as November 3.

On November 3, according to Nansen 2 data, approximately US$2.1 million of funds flowed into BADGER in Smart Moneys 24-hour Ethereum network capital inflow tracking list. On November 9th, Binance officially announced that it would launch the BADGER 1-50 times U-based perpetual contract at 20:30 (Eastern Eighth District time) that night. Since Binance announced this news, BADGER has started to rise due to the impact of Binances online contract.

Focusing on introducing Bitcoin to Ethereum, what is the logic behind the rise of Badger DAO?

In fact, the logic that BADGER can lead the rise this time may be that it is related to both the Bitcoin ecology and the Ethereum ecology.

Badger DAO, the decentralized autonomous organization behind BADGER, focuses on introducing Bitcoin to DeFi and released the Purple Book of its eBTC protocol on July 26 this year, launching a censorship-resistant DeFi synthetic Bitcoin. Users can use Lidos stETH to borrow eBTC with 0% interest, repayment fees and activation fees, which is designed to provide users with efficient and economical access to assets.

It is reported that the eBTC protocol generates revenue by obtaining a certain proportion of staking revenue from the total system collateral, that is, the “protocol revenue share.” To ensure the solvency of the system, eBTC adopts a liquidation mechanism, whereby debt positions are eligible for liquidation if the collateral debt ratio falls below the minimum 110%. In the event that a debt position is not liquidated but its collateralization ratio drops below 103%, the protocol will treat it as undercollateralization and implement debt reallocation.

In addition, in March 2021, Badger DAO also collaborated with the decentralized stablecoin DefiDollar to launch the interest-bearing Bitcoin ibBTC, which was launched on the Ethereum main network.

Officially, the first ibBTC liquidity pool is Badger Setts, and more pools will be launched in the future. The way to mint ibBTC is:

Users mortgage renBTC, sBTC, and tBTC into the corresponding Curve pool;

2. Mortgage Curve’s LP tokens into Badger Setts in exchange for Bitcoin income;

3. Mortgage Badger Sett’s LP tokens into DefiDollar to obtain ibBTC. (If you have Badger LP before, you can skip the first two steps)

The interest calculation sources of ibBTC include transaction fees in Curve, CRV rewards on the Curve platform, and Badger earnings in Badger Setts.

After the general rise in the Bitcoin ecosystem, the Ethereum ecosystem also rose accordingly. Coupled with the news from Binance, it also pushed BADGER to the leading position.