New Yield Sources for Badger Locked Convex & ibBTC Upgrade
Jan 14, 2022
Badger is developing new ways to drive value for bveCVX depositors, which supports our ability to direct yield to ibBTC, our flagship asset.
In the latest Convex gauge vote (Week of Jan 6), Badger executed a new strategy, splitting our bveCVX vote as follows:
- 35%: ibBTC/sBTC pool
- 35%: renBTC pool
- 30%: other pools with the intention of selling the bribes and distributing them to bveCVX holders in the form of claimable bveCVX
This vote split had two purposes:
1. ibBTC Exclusive Yields
With the recent vote, the ibBTC/sBTC yield available in Badger is the highest available in DeFi for this pool. This will be done by redirecting the emissions farmed by ibBTC’s underlying position in the renBTC pool towards the ibBTC/sBTC Badger vault.
Based on Badger’s projections of renBTC farming, the following amount of tokens will be distributed to ibBTC/sBTC users in the app split over each cycle running over the 2 weeks starting at 00:00 UTC on Jan 12 2022 and ending at 00:00 UTC on Jan 26th:
- 19497 cvxCRV
- 3578 bveCVX
2. bveCVX Yield Boost from Bribe Earnings
Directing some of our CVX vote towards Votium bribes, which we sell and emit as bveCVX, introduces a third source of yield to locked CVX depositors and makes the vault more competitive in the current bribing landscape.
This bribe selling strategy resulted in the acquisition of 5812.124 bveCVX that are being distributed to bveCVX depositors in the same manner and over the same period as described above for ibBTC.
In addition, 6383.061 more bveCVX were acquired from selling other tokens in the bveCVX contract after an upgrade allowed the claiming of bribes from the Convex platform. Those are being distributed to the depositors over the next four weeks in 2 hour cycles starting at 00:00 UTC on Jan 12.
This new yield source is now visible in app.badger.com and the variable APY projections, as always, are updated continuously based on the most recent rewards data. To view the current APY breakdown, hover your cursor over the white APY number in the app.
The bveCVX were acquired through the bveCVX/CVX Curve pool, which resulted in the changing of the bveCVX/CVX price from 0.978 to 0.9945.
More details around this vote and the next steps in our ibBTC/CVX influence strategy are forthcoming and we will continue to work through our public RFF process to codify our ibBTC policy and drive further value for locked CVX holders.