BadgerDAO x UMA: Introducing Rebase Mining & DIGG Options Airdrop

Jonto
Jonto
Apr 22 · 4 min read

BadgerDAO is partnering with UMA on the next evolution of incentive mining in DeFi. Liquidity Mining has become ubiquitous in DeFi and with the release of their KPI options UMA broke new ground with TVL mining. BadgerDAO is extending this model in collaboration with UMA to launch Rebase Mining.

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.

This is the first iteration but we are optimistic that leveraging Rebase Mining on a continuous basis can be the external factor necessary to enhance the underlying rebase mechanics in the DIGG token. It can be the ongoing incentive necessary to address the lack of interest for users to buy rebasing tokens once they are 15–30% below peg.

How Does it Work?

These options will launch on May 7th and mature on June 7th 2021.There must be a minimum of 5 positive rebases in that month for the options to mature for any rewards. The rewards then increase every additional positive rebase to a maximum of 30 days which pays out 100% of the rewards pool. A 1.5 power will be applied to redemption value which means that each positive rebase will increase redemption value at a rate higher than the last one.

DIGG Options Airdrop

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).

This means between this announcement and launch there is an opportunity for new users to become DIGG holders and LP’s to earn the airdrop. 5% will be dropped to NFT holders and the final 5% eligible for anything supportive of DIGG at the discretion of the badger core team.

Drop Details

A root will be applied to holding value when determining distribution to ensure smaller holders receive worthwhile benefit as well.

  • bDIGG holders
  • DIGG/wBTC uni and sushi stakers
  • bDIGG/bBTC stakers (on BSC)

60% of the options will be distributed based on a snapshot taken within 24 hours of the options drop (and 30 day timer starting). These rewards will be distributed linearly based on total amounts per address.

  • bDIGG holders
  • DIGG/wBTC uni and sushi stakers
  • bDIGG/bBTC stakers (on BSC)

5% of the options will be distributed to Badger NFT holders based on the “Pre-Drop” (May 6th) snapshot. The NFT score is being finalized but the original honeypot, diamond hands, and jersey NFTs will be included.

5% of the options will be deployed at the teams discretion leading up to and during the campaign to drive and reward behavior supportive of DIGG.

Below outlines some initial modeling around potential average payouts for users based on gathering data today. From this you can see among the 1768 eligible addresses in the scenario where there are 30 positive rebases that month (100% payout), an average users would receive $5,656 worth of DIGG each at todays price. The max any 1 wallet would receive is $280,052. This is only directional and final results will be quite different.

Conclusion

How Do I Learn More About Badger?

ℹ️ Visit Our Website

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➡️ Join Our Community Discord

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