Category: Treasury Management
Scope: Utilize the treasury’s $bDIGG, $bBADGER, and $ETH to start bBADGER/ETH & bDIGG/ETH pools on sushiswap.fi to further promote bBADGER and bDIGG use in the DeFi stack.
To further add utility for bBADGER and bDIGG we would like to propose using a portion of the bDIGG, bBADGER, and ETH that the treasury holds on seeding bBADGER/ETH & bDIGG/ETH pools on sushiswap.fi The immediate use cases of this would be to further integrate bDIGG and bBADGER into DeFi protocols like Unit Protocol (Unit.xyz), a decentralized protocol that allows you to mint stablecoin $USDP using a variety of tokens as collateral. These pools would let the price oracles for these platforms measure bBadger and bDigg, a necessary step for Unit Protocol integration.
This can allow Badger users to access additional yield through minting $USDP and utilizing it in DeFi apps like curve.fi pools for CRV rewards, component.finance pools, etc. This also opens doors to many other potential opportunities for users with more protocols and applications integrating and utilizing the pools and earning $SUSHI via the Onsen program. This may also pave further steps for the upcoming backstop fund.
- Onsen Rewards from Sushi Pools for the treasury
- Accesses to market opportunities like Component.finance utilizing $USDP while retaining your bBADGER & bDIGG positions
- Use of borrowed USDP in DeFi applications
- Unite the Pink Ducks and Badgers
How does it work?
- User goes to Unit.xyz and chooses bBADGER or bDIGG as Collateral
- User Opens CDP by Depositing collateral and Borrowing USDP
- The health factor is adjusted on a sliding scale to a level each user is comfortable with before executing
Unit.xyz uses the price feed data from Sushiswap via Keep3r.
In particular, it means that bDIGG price feed that will determine whether a position gets liquidated or not, will be based on the time-weighted average price (TWAP) on Sushi bDIGG/ETH pair. That TWAP will be taken from the most fresh dot in the 1.5-2.5 hours range provided by the Sushiquote.
The pools should be seeded with ~ $500k in each pool to provide the basic level of liquidity needed for the oracle.
Upon passing snapshot the core team can use the $1 Million worth of Badger and DIGG from treasury to seed the bBADGER/ETH & bDIGG/ETH pools on sushiswap.fi