BIP 90: Make Every Badger Count

BIP 90: Make Every Badger Count

Category: Boost

Status: Pending

Scope: Update the boost calculation to a linear function rather than having stake ratio cliffs and add additional benefits up to 300% stake ratio

TL;DR;

The purpose of this proposal is to improve the user experience by:

  • Providing smoothly increasing yield on incremental native token holdings
  • Increasing the cap on matching native tokens from 100% to 300%

It is expected that this will result in reduced selling of BADGER token incentives since they would count for incremental boost.

Current State:

  • The ibBTC/crvsBTC and cvxCRV vault yields are boosted when the wallet holds native BADGER or DIGG tokens
  • Boost is determined by levels, from 1 - 2000, based on the value of native tokens held relative to the value of the vaults. The specific breakdown is shown at the bottom of this BIP
  • Native tokens do not generate incremental yield when their value is above the threshold for one boost level but not high enough to achieve the next boost level

Proposed State:

  • The new max boost will be 300%
  • All native tokens from 0% - 100% will generate yield based on the following smooth boost
    • Formula: min(math.floor(stake_ratio * 2000), 2000)
  • Native tokens above 100% will generate reduced boost as follows
    • 100% - 150% = 2500 (boosted at 50% of tokens from 0% - 100%)
      • Formula: multiplier = 2000 + (stake_ratio - 1) * 1000
    • 150% - 200% = 2750 (boosted at 25% of tokens from 0% - 100%)
      • Formula: multiplier = 2500 + (stake_ratio - 1.5) * 500
    • 200% - 300% = 3000 (boosted at 12.5% of tokens from 0% - 100%)
      • Formula: multiplier = 2750 + (stake_ratio - 2) * 250

Considerations:

  • Aggregate rewards/yield will not change

  • Within existing boost levels, yield distribution will change with more yield going to wallets with more native token holdings

  • When native tokens lose value relative to non-native tokens and a wallet is close to the bottom of a boost level

    • Current State: The wallet may drop an entire boost level
    • Proposed State: The wallet will lose a small amount of incremental yield
  • When native tokens gain value relative to non-native tokens and a wallet is close to the top of a boost level

    • Current State: The wallet may jump to the next boost level
    • Proposed State: The wallet will gain a small amount of incremental yield

Current Boost Structure:

  • Badger Boost has stake ratio ranges in which your boost correlates with a static boost amount. You can see the breakdown of Stake Ratio (Native Assets / Non-Native Assets) to the left and Boost Value to the right below
* 0.0000 -> 0.001 = 1
* 0.0010 -> 0.0025 = 2
* 0.0025 -> 0.005 = 5
* 0.0050 -> 0.01 = 10
* 0.0100 -> 0.025 = 20
* 0.0250 -> 0.05 = 50
* 0.0500 -> 0.075 = 100
* 0.0750 -> 0.10 = 150
* 0.1000 -> 0.15 = 200
* 0.1500 -> 0.20 = 300
* 0.2000 -> 0.25 = 400
* 0.2500 -> 0.30 = 500
* 0.3000 -> 0.40 = 600
* 0.4000 -> 0.50 = 800
* 0.5000 -> 0.60 = 1000
* 0.6000 -> 0.70 = 1200
* 0.7000 -> 0.80 = 1400
* 0.8000 -> 0.90 = 1600
* 0.9000 -> 1.00 = 1800
* (>=1, 2000)

VOTE:

Update Boost Calculation
  • Yes - Update boost
  • No - Boost is good as is
  • I’d like to modify boost, but this isn’t the right way

0 voters