{"id":462776,"date":"2021-04-30T19:10:48","date_gmt":"2021-04-30T19:10:48","guid":{"rendered":"https:\/\/uniquehot.com\/?p=462776"},"modified":"2024-06-11T13:55:25","modified_gmt":"2024-06-11T13:55:25","slug":"how-this-bitcoin-pegged-token-could-protect-holders-from-volatility","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/how-this-bitcoin-pegged-token-could-protect-holders-from-volatility\/","title":{"rendered":"How This Bitcoin Pegged Token Could Protect Holders From Volatility"},"content":{"rendered":"
Anonymous analyst \u201cWezek Bruh\u201d posted the main reasons why BadgerDAO and its native token pegged to Bitcoin<\/a>, DIGG, could be a great opportunity for investors. Created as a rebase token, DIGG has the capacity to contract or expand its supply to meet a price target, as Wezek Bruh explained.<\/p>\n The analyst believes there is value in DIGG as a potential speculative investment and a \u201ccritical part of the Badger ecosystem\u201d<\/a>. DIGG holders have a fixed percentage of the token\u2019s total supply market cap. Although its price is determined by market dynamics, the numbers of DIGGs an investor has, within a wallet or smart contract, can increase or decrease depending.<\/p>\n This is determined by the positive or negative rebase, but as the analyst explained, this mechanism is designed for the investor to \u201calways keep your share of the pie\u201d. Wezek Bruh added<\/a>:<\/p>\n The main takeaway is that you should think about your DIGG position in terms of percentage ownership of the total market cap rather than the number of tokens multiplied by the price per token.<\/p><\/blockquote>\n DIGG holders can stake their tokens inside a Badger vault and receive rewards with the token bDIGG. Currently, there is a 43% APY with this product. Unlike DIGG, bDIGG is not subject to the rebase mechanism. The analyst said the following about BadgerDAO and one of its investment Bitcoin-based strategies:<\/p>\n (\u2026) you can buy DIGG which imperfectly tracks the price of BTC, stake it in Badger to earn 43% APY, and also get bDIGG tokens back in your wallet that you can use in other places within DeFi.<\/p><\/blockquote>\n The analyst highlights that BadgerDAO<\/a> offers its users incentives that allow both holders and the protocol to benefit. Therefore, the latter can build a sustainable model.<\/p>\n As Wezek Bruh further explained, DIGG\u2019s is rebased on a 10-day period. The mechanism responds to BTC\u2019s price oscillation. Therefore, DIGG takes longer to react to a crash or bull-run. This window can be leverage in more investment strategies.<\/p>\n Since the token tracks BTC\u2019s price performance, DIGG can be considered a synthetic version of Bitcoin<\/a>. An \u201cimpure\u201d one, as the analyst claimed. However, BadgerDAO has the objective of integrating BTC with the DeFi sector. Wezek Bruh added:<\/p>\n Badger is entirely focused on bringing BTC to DeFi. And with DIGG, it is one of the few places that offer yield in BTC. In the end, I prefer BTC over \u201cfill in the blank\u201d latest token of the week.<\/p>\n In contrast with other synthetic versions of BTC operating on the DeFi sector, such as Wrapped Bitcoin (WBTC), DIGG removes a risk factor by not requiring users to provide collateral. The analyst believes this protocol can reach the \u201cHoly Grail of crypto\u201d by combining BTC\u2019s feature as a store of value with the \u201clong-term\u201d utility found in DeFi and Ethereum<\/a>\u2019s ecosystem. Wezek Bruh said:<\/p>\n The mechanics around DIGG may be different, but the utility remains as DIGG owners are provided BTC in-direct exposure on Ethereum to earn interest (bDIGG, ibBTC), lend against their positions, and (most importantly) as a composable asset in DeFi to do much more!<\/p><\/blockquote>\n Bitcoin trades at $57.043 with a 7.6% rally in the daily chart. In the weekly and monthly chart, BTC has a 9.7% profit and a 2.8% loss, respectively.<\/p>\nHow DIGG Can Be A Hedge Against Bitcoin\u2019s Swings<\/h2>\n