Badger Locked CVX is Live
Oct 05, 2021
After a week of security testing, Badger’s Locked CVX Sett Vault is now open for uncapped deposits.
Our newest vault aims to provide some of the best and most reliable risk-adjusted returns in DeFi for vote locked CVX tokens.
The Vault accepts Convex Finance governance tokens (CVX) and emits 3 layers of rewards:
- The underlying cvxCRV all vote locked CVX receives from Convex
- Target of 10% APY denominated in BADGER after the first two weeks
- 10,000 cvxCRV split evenly among all vault depositors per week (exact amount per week may change after initial 16 weeks)
Locking your tokens also helps BadgerDAO fight for better organic yields for BTC assets across DeFi.
IMPORTANT: Unlike most Badger Sett Vaults, this vault locks tokens for 16 week terms to participate in the Convex governance process. The amount available to withdraw at any given time will vary. Users will only have the ability to withdraw at certain times.
Please read the User Guide before depositing.
Emissions Restructuring: Pro-rata Rewards
With the passage of BIP 70, the Badger community decided to deactivate the Badger Boost system for BADGER rewards on this Sett. In addition, blCVX will no longer be counted towards a user's non-native balance in the Boost calculation.
This means that all depositors will receive the same APR in both BADGER and cvxCRV allocated to the Sett.
This will also make the Sett more attractive for new users and those with smaller Stake Ratios as it will allow for equal reward opportunities all while ensuring that the DAO gets as much CVX voting power as possible.
Since blCVX does not count as non-native balance, Sett depositors will be able to utilize their Boost power on other non-native Setts, while getting the Badger & bcvxCRV bonus from being in the Badger Locked CVX Vault.
Locked CVX Supports Better Yields for BTC Across DeFi
Why is Badger, a Bitcoin focused DAO, asking users to lock their CVX?
The answer is simple:
Convex Finance tokens (CVX) control nearly half of the voting power in the Curve ecosystem, where there is over $2.5b of liquidity for Bitcoin-pegged assets.
Despite being over 20% of Curve liquidity, BTC-pegged assets now receive less than 2% of CRV rewards due to a lack of voting power.
With this vault, Badger is changing that.
By amassing a significant voting stake in Convex, and Curve by extension, Badger will be able to vote for major and sustainable increases in the underlying yield paid to Bitcoin assets across DeFi.
Better BTC yields will drive more TVL for Badger, which will allow us to re-invest in rewarding users who lock even more CVX.
The result is a positive feedback loop that will benefit Badger users and the wider Bitcoin community in DeFi.
The Badger team believes this Sett Vault is the best risk-adjusted return available for CVX holders in DeFi, and is committed to further strengthening its appeal going forward.
- Can I deposit bCVX? No, the CVX needs to be withdrawn but we are working on a zap to make this easier.
- When will I be able to withdraw? During periods when some tokens are unlocking there will be capacity for users to withdraw from the Sett but the amount of available withdrawal capacity is not guaranteed. A dashboard to make this more clear is being developed.
- Are there fees? There is no performance fee and a .1% Withdrawal fee.