I was having some discussion in discord about the DIGG Airdrop and an idea came up regarding how to handle the 1:1 DIGG:wBTC LP support out of the gate.
The idea is as follows:
Offer the DIGG airdrop wallets the following:
A DIGG Air-drop bonus beyond the normal 1x IF they qualify and precommit to the following:
To deposit some minimum amount of wBTC to be paired 1:1 with their DIGG airdrop into either the UNI or Sushiswap LP (the bonus rewards for this action will be equally split between UNI/SUSHI).
THe idea would be to take part of the Treasury DIGG in this airdrop and offer a bonus that is preferentially offered to people who:
- Held all Badger
- Added value and purchased Badger
- Never sold 1 Badger or below their initial stake (or increased their LP stakes as time went on)
- Have the most accumulated stake days (not necessarily points)
- Have a minimum wBTC to add (.1wBTC?)
- Bonus goes up to a maximum wBTC depending on coverage.
- The sett reward multipler set to maximum via staking days out of the gate ?? (doable or no)
The point here is that we are going to have 600 DIGG coming out on this initial Air-drop and it would be ideal if we could find at least 100wBTC to pair with 100DIGG 1:1 to provide liquidity on UNI and Sushiswap out of the gate.
We can have people who have wBTC and are expecting to get a DIGG airdrop sign a transaction (just like doing the vote) of their intention to be ready to deposit at least .1wBTC into a contract that then would be used to pair with their DIGG airdrop 1:1 for uniswap LP or sushiswap LP before anyone else gets DIGG.
This way we pre-prime the LPs by offering both a extra DIGG air-drop bonus before the markets get this. We can also offer these people either an bonus DIGG air-drop of rewards later or a bonus on rewards. This could even be signaled by dropping a NFT for these wallets to be the thing that gives them the addtional bonus.
The details I want to leave completely open. The goal is to allow the most committed Badger supporters who took on the most risk early the ability to get an additional DIGG air-drop bonus by allowing them to bring in more wBTC liqudity into the protocol and helping stabilize the DIGG:wBTC PEG with liquidity before the DIGG air-drop happens.
What the bonus is, who to offer it to, how it is spread out between people who want to contribute, or the rest of the details should be up to the community. Given this air-drop is coming quickly I think prudence says we should at least try to give the community itself a way to provide wBTC liquidity for DIGG.
The bonus that is offered can simply be distributed to everyone so we don’t necessarily limit the amount of wBTC available for this as there is more wBTC available than DIGG. If done right we might find what 200 wBTC+ ready to pair with DIGG before the air-drop even happens covering the Air dropped DIGG almost 1:1
What I am suggesting is that we take a piece of the Treasury side here to offer up as a DIGG bonus for people who will pair wBTC 1:1 with their DIGG. How much up for discussion. The bonus could also ‘vest’ for later btw for people who don’t sell DIGG and only accumulate rewards further reducing sell pressure on DIGG and encouraging people to get in (increasing the probability the DIGG:wBTC ratio goes above one allowing the treasury to build a wBTC stash to manage the DIGG:wBTC PEG)
Details to be discussed by the community.