Badger DeFi Protocol Partners With Yearn.Finance: Report

The Bitcoin-focused Badger DeFi protocol has just made a partnership with Yearn Finance as per the reports that we have in our latest cryptocurrency news.

Badger DAO launched back in December as a new project that wants to boost the adoption of Bitcoin on Ethereum. The project saw quite the traction so far and garnered more than $2 billion worth of deposits as of the high recorded yesterday. The project’s native coin Badger was on a tear over the past few days and moved to a high of $80 while the previous low record asset at $5. Badger’s core team unveiled that it will be partnering with Yearn Finance and will bring value to the bitcoin vaults project that allows depositors to earn additional capital on the initial capital:

 “Today we’re excited to develop a partnership that will bring our teams together to further accelerate best in class BTC vaults for the industry. This is a step to further secure users funds as we continue to introduce more Yearn developed, maintained and secured vaults to our users.”

The protocol’s developers see this as a very important development and it will help live longer-term value to the vaults depositors as opposed to the current state of the vaults which are subsidized by DIGG rewards as well as Badger rewards that are distributed to the depositors to incentivize participation. The partnership means that the YFI developers will be able to create BTC vaults that will be incentivized with DIGG and Badger rewards.

Excited to announce our partnership w/@iearnfinance to bring the best in class BTC vaults to the industry!

Together we can give users the most innovative yield strategies while upholding the highest level of security.

Read the details 👉 https://t.co/DUiOTqS2K4

Thread 👇 pic.twitter.com/NQjGIrz1ZP

— ₿adger DAO 🦡 (@BadgerDAO) February 10, 2021

The partnership will allow both communities to share the net revenue from the vaults based on the total TVL that the badger will bring. Badger remained stagnant over the past day and traded 0.1 percent down which means that the ETH-based coin outperformed BTC by about 3%. YFI on the other hand is up by 2.5% over the past day and is outperforming ETH by 5.5 percent. The partnership came as the hype started growing about Badger’s DAO product, the CLAW. CLAW will be a stablecoin that will be collateralized by  Badger DAO’s vaults deposits which means that the users can deposit capital into Badger DAO and will earn a yield on that deposit which can take out a stablecoin to trade or to use in different Defi facets:

 “It is a stablecoin that you mint after using one of our Setts as collateral and is in collaboration with UMA. The current cap on how much can be minted is $1b. Unlike DAI, Claw will have an expiration that will be a fixed term, from release.”