News Report Technology
March 26, 2024

BadgerDAO Teams Up with Lido to Introduce eBTC, Announces 15 stETH Airdrop

In Brief

BadgerDAO partnered with the liquid staking platform Lido to introduce eBTC–a synthetic Bitcoin token backed by the Ethereum blockchain.

BadgerDAO Teams Up with Lido to Introduce eBTC, Announces 15 stETH Airdrop

Decentralized autonomous organization (DAO) focused on integrating Bitcoin into decentralized finance (DeFi), BadgerDAO, entered into a partnership with the liquid staking platform Lido. Together, they introduced eBTC–a synthetic Bitcoin (BTC) token backed by the Ethereum (ETH) blockchain.

“After 18 months of rigorous development, we are excited to launch eBTC, a truly unique DeFi primitive that makes it easy for anyone to borrow Bitcoin with absolute transparency,” said Chris Spadafora, founder of BadgerDAO. “Finally, we can bring the power of Ethereum staking to Bitcoin.”

Users now can utilize assets such as ETH, wrapped Ethereum (WETH), staked Ethereum (stETH), or wrapped staked Ethereum (wstETH) to borrow over-collateralized eBTC designed for Ethereum DeFi without incurring any fees. Instead of immobilizing assets through conventional staking methods, Lido’s liquid staking protocol enables users to accrue staking rewards on the underlying asset, which, in this instance, is ETH. Meanwhile, it facilitates the utility and liquidity of ETH across different DeFi applications by transforming it into a liquid staking derivative token, known as stETH.

eBTC marks BadgerDAO’s first effort focusing exclusively on the ETH to BTC ratio. Currently, most trading and strategies pertaining to this pair are conducted off-chain through centralized counterparties. However, eBTC empowers users to engage in these activities on-chain with complete transparency. Furthermore, eBTC prioritizes security. Key stakeholders have been actively engaged in the protocol’s development since its inception, providing guidance on essential architectural decisions and addressing potential risks associated with both the code and economic modeling.

Lido, a leading Ethereum liquid staking solution, currently has a total value locked (TVL) of $35.1 billion, according to DefiLlama, with the market capitalization of stETH positioning it among the top ten cryptocurrencies. In addition to the launch of eBTC, Lido’s Liquidity Observation Lab aims to offer early adopters an extra reward of 15 stETH valued at about $55,000, to be disbursed through an airdrop after the one-month incentive phase.

BadgerDAO Enhances Security Measures Post-Attack

BadgerDAO aims to facilitate the use of Bitcoin as collateral across various blockchains, thereby enabling its integration into numerous DeFi platforms. The project offers yield-earning on wrapped Bitcoin through automated staking vaults. According to DefiLlama data, BadgerDAO reports accumulating $3.5 billion in lifetime Bitcoin deposits, with its current total value locked (TVL) at $23.4 million.

In 2021, BadgerDAO experienced a front-end attack resulting in a loss of $120 million. The incident had repercussions across the cryptocurrency sector, affecting cryptocurrency lender Celsius Network, among other companies. Following this breach, BadgerDAO approached the launch of eBTC with a heightened emphasis on security. This included collaborating with RiskDAO for economic risk assessments, Spearbit for smart contract audits, Cod4rena for a crowdsourced audit, and Immunefi for a pre-launch bug bounty program.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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