Hi everyone, having witnessed the tremendous growth of the TVL within BadgerDAO, I was wondering how we can increase of the intrinsic value of the $Badger token. Because to be frank, receiving airdrops is the only use case of the Badger token. And that is a weak case, even if it can be used as collateral on cream.finance.
And this means upcoming ‘copycat’ protocols that also offer Bitcoin-focused DeFi products will be able to leech on BadgerDAO’s TVL if their governance token presents better value accrual. In the worst-case scenario, those protocols overtake BadgerDAO.
Hence, I would like to propose the following approach that could help to protect BadgerDAO from copycat protocols.
As we know the idea for people to borrow Badger Dollars against their vault positions is currently in the works. So why not redistribute the profits earned from lending to bBadger holders? This would increase the demand for bBadger, which would require them to purchase Badger, thereby creating a liquidity black hole (price of Badger will spike hard due to overwhelming demand and the lack of supply).
And people using these vaults have the incentive to stay inside the sett since they get to mine for more badgers which they will stake in order to get those fees. It creates a positive feedback loop that would increase the TVL stickiness of the BadgerDAO protocol. Given that BadgerDAO has the first mover advantage, it should seize this moment to grab the mindshare of the market to the protocol to go to when you wanna yield farm with your tokenized BTCs.
Proposal: To have the profit split to bBadger holders in terms of Badger dollars. 70% to bBadger holders and 30% to the grant.