Ampleforth-like Bitcoin rebasing token DIGG drops: crypto stimulus checks

 Ampleforth-like Bitcoin rebasing token DIGG drops: crypto stimulus checks


The newest crypto stimulus (or DeFi stimulus examine, to be extra correct) has simply dropped.

Badger DAO, a Bitcoin-focused decentralized finance mission primarily based on Ethereum, simply rolled out a brand new coin referred to as DIGG. BADGER, the governance token for the protocol, already exists.

DIGG is a brand new token that works very similar to Ampleforth, a supply-elastic cryptocurrency that adjustments its provide primarily based on the value of the coin at every time. As an alternative of being pegged to a greenback, DIGG pegs to the value of 1 Bitcoin. Though this may increasingly sound like a small nuance, many within the DeFi area have stated that this modification might lead to extra reflexivity within the coin’s value motion.

That being stated, DIGG was distributed to customers of the Badger DAO protocol on a semi-quadratic foundation on these three key elements:

  • BADGER staked within the protocol.
  • BADGER earned by the consumer. BADGER may and nonetheless will be earned by customers by depositing liquidity into the protocol for farming functions.
  • How a lot BADGER has been earned by the consumer relative to the cash they’ve staked.

Concerning the semi-quadratic foundation, this was executed to make the distribution of DIGG extra truthful:

“Different particulars concerning the distribution have been outlined within the BIP 14 discussion board submit, together with the usage of a 1.75 root utilized to the Earned Rewards to find out relative distribution. The aim is to make the DIGG wealth distribution extra equal amongst Badger customers, benefiting DIGG as a product by growing its retailer of worth capability. Sybil-resistance measures have additionally been applied to stop abuse of the distribution mannequin.”

Whereas DIGG is being distributed to all customers of the protocol, the market appears to be embracing it.

Because the coin launched an hour in the past, the market has priced it as excessive as 3.5 BTC, or in extra of over $100,000. It has since dropped towards $45,000, that means that one DIGG is price a couple of Bitcoin at this level.

Customers can stake their DIGG in Badger DAO to earn additional DIGG, together with Badger rewards in some swimming pools.

Whereas this wasn’t precisely just like the UNI airdrop, the place most customers bought at the very least $1,500 price of the Uniswap coin, there are numerous customers reporting that they acquired hundreds of {dollars} price of DIGG within the airdrop. Some even joked that they acquired the equal of yearly salaries in DIGG.

Disclaimer: This creator is an analyst at ParaFi Capital. ParaFi Capital might maintain positions in property talked about on this article. The views displayed on this article are opinions of the creator—and the creator solely. 

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