Author: Sharon, BlockBeats

Content:

· 24-hour increase once exceeded 90%, BADGER led the rise of Bitcoin derivatives concept

· Smart Money ambush, Binance boost

· What is the logic behind the rise of Badger DAO, which focuses on bringing Bitcoin into Ethereum?

24-hour increase exceeds 90%, BADGER leads the Bitcoin derivatives concept

On November 10th, according to CoinGecko data, as of 9:30, the Bitcoin-related currency BADGER was priced 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 at present.

Smart Money Ambush, Binance Boost

In fact, the surge of BADGER in this round was hinted as early as November 3rd.

November 3rd, according to Nansen 2 data, approximately $2.1 million flowed into BADGER in the Smart Money 24-hour Ethereum network fund inflow tracking list. Then on November 9th, Binance officially announced that it would launch BADGER 1-50x U perpetual contract at 20:30 (GMT+8) on the same day. Since the announcement of the contract launch on Binance, BADGER has been rising all the way due to the impact of the contract launch on Binance.

Focus on bringing Bitcoin into Ethereum, what is the logic behind the rise of Badger DAO?

In fact, the logic behind BADGER's ability to lead the rise may lie in its association with both the Bitcoin ecosystem and the Ethereum ecosystem.

The decentralized autonomous organization behind BADGER, Badger DAO, is focused on bringing Bitcoin into DeFi and released the "Purple Paper" for its eBTC protocol on July 26th. This introduces a censorship-resistant DeFi synthetic Bitcoin. Users can borrow eBTC using Lido's stETH with 0% interest, repayment fees, and launch fees, providing users with an efficient and cost-effective way to access assets.

It is reported that the eBTC protocol generates income by obtaining a certain proportion of pledge income, namely "protocol income share", from the total system collateral. To ensure the solvency of the system, eBTC adopts a liquidation mechanism, which means that if the collateral debt ratio is lower than the minimum 110%, the debt position is eligible for liquidation. In the case where the debt position has not been liquidated, but its collateral ratio has dropped below 103%, the protocol will consider it as insufficient collateral and implement debt redistribution.

In addition, in March 2021, Badger DAO also launched interest-bearing Bitcoin ibBTC in collaboration with decentralized stablecoin DefiDollar on the Ethereum mainnet.

Related reading: "Badger DAO to launch interest-bearing Bitcoin ibBTC, will also go live on BSC, Polygon and other networks."

Officially, the first ibBTC liquidity pool is Badger Setts, and more pools will be launched in the future. The method of minting ibBTC is:

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

2. Collateralize Curve's LP tokens in Badger Setts to earn Bitcoin yield;

3. Stake Badger Sett's LP tokens in DefiDollar to receive ibBTC. (If you already have Badger LP tokens, you can skip the first two steps.)

The interest source of ibBTC includes transaction fees in Curve, CRV rewards on the Curve platform, and Badger earnings in Badger Setts.

After the widespread adoption of the Bitcoin ecosystem, the Ethereum ecosystem also rose, and with the help of Binance's news, BADGER has also been pushed to the forefront.

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