Badger DAO Partnership: BTC2x-FLI & ibBTC

1

Owners: @oneski22 [Discord: TrotNixonLine], @BigSky7, @Mringz

Channel: #business-development

We have an opportunity to increase the TVL of BTC2x-FLI by creating a BTC2x-FLI / ibBTC Uniswap V3 pool in collaboration with Badger DAO.

The LP pool enables users to:

  1. Gain 1.5x exposure to BTC plus trading fees
  2. Earn interest as ibBTC is interest-bearing

Context:

Badger Finance is a community DAO, focused on bringing Bitcoin to DeFi. They are the leading DeFi project in putting Bitcoin to work, through their Sett yield aggregators and their byvWBTC vault in collaboration with Yearn.

ibBTC is an ERC-20 token representing a Bitcoin earning yield in Badger’s Ecosystem, read more here.

Formal Request:

$150k loan of BTC2x-FLI from the IndexCoop Treasury and a $150k loan of ibBTC from the Badger Treasury to seed the liquidity of this new Uniswap V3 pool.

Why Uniswap V3: For smaller hyper-focused pools such as the one proposed here, the benefits of Uniswap V3’s concentrated liquidity will allow for high liquidity in the pair, without the need for a high TVL.

For Badger this pool offers the following benefits:

  1. Continued demonstration that Badger is the leading Bitcoin specialist in DeFi.
  2. Increase the extrinsic productivity ibBTC

For Index Coop this pool offers the following benefits:

  1. Increase the extrinsic productivity for BTC2x-FLI
  2. Unique product exposure to productive WBTC
  3. Partnership with another leading DAO in DeFi, creating unforkable value.

Risks:

  • Fragmenting the liquidity for BTC2x-FLI / WBTC Sushi pool

Marketing Requirements:

  • Social media announcement about the campaign through both parties’ media channels
  • Article and Twitter thread about the partnership and benefits of the pool.

Badger DAO’s marketing channels:

  • Twitter: 33.9k Followers
  • Telegram: 7k Members
  • Discord: 14k Members
  • Medium: 2.2k Followers

Analytics Requirements:

KPIs:

  • BTC2x-FLI / ibBTC liquidity
  • BTC2x-FLI / ibBTC daily volume
  • BTC2x-FLI / ibBTC “efficiency” (24-hour volume / TVL)
8 Likes
2

What is the tick range that you guys want to seed liquidity with? How will both DAOs manage updating range as BTC2x : ibBTC ratio fluctuates?

4 Likes
3

Same question as Kiba. $300k pool with no incentives means liquidity would have to be super concentrated to provide any depth.

also,

  • where are we getting 150k of BTC2x-FLI and what happens if the pair trades out of range and we are sitting on ibBTC?

  • do we actually want to have $150k of 2x BTC exposure on the “balance sheet”?

  • don’t see much advantage to the Coop. Feels like we are doing this just to do it. Not sure $150k of 2x BTC exposure is the right price for smth like this.

1 Like
4

This has the potential to get some solid use. Just the question of managing the range. It shouldn’t vary all that much but will need tracking over time and require funds to make changes.

What about an automatically managed pool? You could then hook up with Visor Finance and add VSR token incentives on top. An Index Badger with Visors.

2 Likes