BadgerDAO x UMA Partnership
BadgerDAO partners with UMA on the next evolution of incentive mining in #DeFi to launch Rebase Mining & DIGG Options Airdrop.
Rebasing mining is an action oriented way for users to earn DIGG rewards instead of just providing liquidity. The volume of rewards are distributed based on the number of positive rebases DIGG experiences in a given 30 day span (when DIGG is higher than the price of Bitcoin). The more positive rebases the more rewards earned and each additional day increases the % of rewards distributed. This incentive model should align DIGG holders to take action to ensure DIGG has as many positive rebases as possible.
DIGG options will be airdropped to Badgers based on certain criteria and claimable through the Badger app. At maturity holders will need to redeem their DIGG rewards using their option tokens.
There will be two snapshots taken to determine which users receive DIGG option tokens. 30% of all options will be airdropped based on a snapshot of wallets which meet the below criteria that was taken yesterday at ~6pm est. 60% of all options will be airdropped to wallets based on a snapshot taken on May 6th 2021 the day before rebase mining begins (May 7th).
For the DAO this creates a positive sum scenario. Through conditional incentives this relatively large portion of the treasury’s DIGG holdings are only deployed if there are more positive rebases in a 30 day period. This increases the value of the treasury’s remaining holdings substantially and in turn makes the reward payout a profitable initiative for the DAO. Most importantly it will enable the stability vault to build a larger reserve of WBTC for buying DIGG on negative rebase. This initiative highlights the flexibility with which the UMA options framework can be deployed and opens up a new era of conditional behavior mining to be utilized across DeFi.
What is BadgerDAO?
BadgerDAO is a cross-chain DeFi protocol that focuses on developing products that enable users to put their Bitcoin to work and while earning yield on their investments.
What is UMA?
UMA is a decentralized financial contracts platform built to enable Universal Market Access. UMA enables DeFi developers to build synthetic assets.
📰 INFO:
https://medium.com/badgerdao/badgerdao-x-uma-introducing-rebase-mining-3c663a5abdce