On May 17th I deposited 0.3 wBTC / 0.3 DIGG Sushi LP into my Badger Sett.
Today I checked and it says my SETT vaults is wBTC / DIGG Sushi LP token ratio is 0.21 / 0.21 .
I’m quite concerned because that means I lost 0.9 wBTC / 0.9 DIGG in my SUSHI LP while it’s deposited into my SETT.
Does anyone have any idea how my token ratio went down while deposited and staked in my SETT?
I really need to understand how I could have lost a total of 0.18 in my wBTC / DIGG Sushi LP …
Please help me understand.
I’ll reiterate… I started with 0.6 wBTC and now it appears I have 0.42 … I’m baffled. Please help me understand. Thank you.
anyone wanna help me out here? please?
DIGG is a rebasing token. When below a DIGG/WBTC ratio of 0.95 it contracts supply. When above 1.05, it expands. This mechanism is how the token drives market actions and encourages the collective market to buy/sell accordingly and return the price of digg closer to the price of wbtc.
The best way to track your DIGG investment in general is to focus on the total supply. Back in May, the total supply was 1360. There have been more negative rebases than positive rebases from then to now, ultimately resulting in a digg supply today of 512. You can see the full history of rebases and supply at digg.finance if you need a reference point. Absent the rewards you are getting from that LP position staked into badger, you would have lost even more, but between the DIGG rewards, DROPT rebase mining, and auto-compounding back into your vault, it has lessened the blow considerably. All that said, yes, you’ve probably lost roughly 30% of your value since May. There are some interesting discussions about the future of DIGG on both the forums and discord, so we hope you’re in it with us for the long haul and excited about revamping and revitalizing DIGG into the long term!
For quicker responses, you can always hop into the discord server, specifically the #rebasing-digg channel, and there are always people around to help explain.
1 Like
I understand now. I’ve lost some $BTC because of the LP being in BTC/DIGG. I see now.
I do enjoy the DROPT I got from the dig positive rebases but I see now that it’s really not helping me as much as I’d like. My LP with BTC/DIGG is hurting my exposure to $BTC b/c of all of the DIGG
negative rebases.
It’s sort of a complex situation because I’m definitely in it for the long haul with DIGG but I hope that somehow I can regain the BTC I lost with DIGG’s negative rebases.
one more question, is the best time to exit my position is when DIGG has a big month of positive rebases?
that way I minimize what I’ve lost in regards to BTC exposure?
I truly appreciate your responses and wisdom with these questions. Thank you.