Great project, perfect alignment with our goals. Has the potential to accelerate/simplify BTC onboarding.
This is a no brainer: Yes!
Really interesting idea! Can’t wait to see it in practice.
Not sure if this is a good place to say this but I’m a full stack web developer (Node back-end and React front-end). Could be interested in helping!
Great move!
Been following REN and 0cf for a while and confident this will strengthen all parties. Well done guys!
I believe this will be a collaboration that will benefit all parties, a true demonstration of DEFI and Money Legos!
Voted yes - In line with putting more dormant BTC to work
Awesome proposal !! let’s do it
Great move!
Can’t wait to see it in practice.
you are doing a lot of good things, but how will the badger token appreciate in this way? you continue to make proposals to invest, but the results? 
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This seems to be the central argument for the investment. How does this align with the Badger Bridge (via Ren) discussed in BIP-41?
I’m also a bit worried that a bunch of core contributors are proposing to divert DAO funds to an initiative that’s potentially overlapping with an already roadmapped feature. Conflict of interest?
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The 0confirmation protocol would enhance the Badger bridge. With the current functionality of the bridge it takes time for BTC to cross to ETH. Similar to what we see with wbtc.cafe for example. Utilizing 0confirmation it would be exponentially faster.
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What is the RBF problem?
Making it more clear to understand for everyone not familiar with the process:
Ren Bridge needs six confirmations, so roughly 1h to finish a transaction.
0conf cuts this down to almost instantly.
great initiative, voted!
Overall I’m in favor of this BIP. However, I’d suggest we adjust the allocation to $500k in USDC, $400k in bBADGER and $100k in bDIGG for 2 reasons:
- to allow for 0cf to have additional diversification in their treasury and to allow for more agile movement of funds if any USD payments must be made
- to minimize potential sell pressure of badger when it comes time for 0confirmation to utilize their funds
This ultimately allows 0confirmation greater flexibility and speed in fund usage.
In this case regarding vesting, I would also suggest unlocking all $500k upfront, and vesting the bBadger/DIGG as the community sees fit (whether that’s 50/50 upfront or vesting continuously for a year).
Please provide comments on the above here and we can also discuss during the AMA tomorrow morning!
Very excited for the potential for 0confirmation to join the Badger Annexe!
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Ready, Set, Go!!!
Badger badger badger
I’d like to hear something more definitive than “would” for a $1M investment. For this amount, I think we should seek a clear, direct impact to the Badger product suite. I don’t know what % of our treasury that would be, but $1M sounds like an incredibly aggressive amount for our first investment out of the Badger Annexe. Especially given the lack of clarity around how it will benefit Badger users.
I’d echo similar concerns voiced on BIP-49. This looks like we’re leading a seed investment round. And while seed investing can be very lucrative, it also comes with a ton of risk. Seed investing is a numbers game. So if we play this game, we should make sure we have the dry powder to make many more similar investments if we want to maximize our chances of arriving to a positive outcome for the DAO.
And again, it seems like this proposal comes from several Badger Core team members / long term core contributors. My understanding is that core contributors are involved in Badger full time, so how is this going to work going forward? Am I the only one concerned about potential conflicts of interest here?
0confirmation is nowhere on the badger roadmap and is a new, novel product for bitcoin on defi. It has specific advantages and disadvantages vs. bridging your funds, in particular the fact that it takes approximately 1 hour to bridge funds, then another few ETH transactions to perform whatever you’d like. Let’s look at an example of a swap from native BTC to USDC as an example:
Bob wants to swap BTC on his ledger to USDC on a DEX.
Option 1: bridge via wbtc.cafe
- Bob goes to wbtc.cafe and initiates a bridge from BTC → wBTC, sending his BTC to the provided address
- wbtc.cafe waits for 6 BTC confirmations and then initiates the mint and waits for Bob’s confirmation on ethereum
- Bob confirms and then waits a few minutes to receive the wBTC on his wallet
- Bob then performs a swap to USDC on Uniswap to receive his funds
Ideally, this interaction would take an hour and 15 minutes or so. In this time, bitcoin flash crashed 10% so Bob lost 10% of his value in USDC.
Option 2: use 0confirmation
- Bob goes to curve, which has a 0confirmation integration and initiates a 0cf swap from BTC → USDC (using their synthetix swap module and 0cf)
- Bob sends his funds to the provided BTC address.
- After the BTC transaction is noticed by a keeper, it performs the swap and sends the USDC to a new proxy wallet
- Funds are released to your ethereum address after 6 confirmations.
Bob gains exposure to his want of USDC immediately, and is not effected by the flash crash of BTC, but has to pay a bit more in fees to utilize the 0confirmation service.
As for the DAO members already on the core team, this will become a product that Badger is supporting similar to CLAWs and ibBTC. There will be no conflict of interest as 0cf succeeding directly leads to badger performing better, and more value given to the DAO and badger holders through fee generation and appreciation of the 0cf token.
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Very much in favor of this proposal! This is precisely the sort of project that provides clear value-add to the BadgerDAO mission. Nice work, @jonto. I also agree with @DeFiFrog regarding adjusting the funding mixture.
Yes. This is exactly what badger is meant for, to bring more BTC into defi, itself, this investment is a MUST.
As earlier mentioned there was a conflict of interest since 0confirmation members are also part of the Badger Core team, this can be overlooked since Badger is still in its infancy , but in future there should be declaration from the core Badger team on what are the other projects they are working on.
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