Badger x Yearn - The first wBTC single-asset vault in our app that runs multiple underlying strategies at the same time in order to achieve the highest yield possible.
In the search for the most efficient BTC vaults that rely less and less on alpha (tokens given as incentive, like Badger and DIGG) and more on the underlying yield generated by the strategy itself, a wonderful partnership between Badger and Yearn was created.
This partnership brought as its first product the yvWBTC vault, which compared to the other setts available on the Badger App, is completely different and brings a completely new underlying strategy. Instead of focusing on just one written in stone strategy (like the Curve.fi LP setts), it works as a sort of yield aggregator, always looking for the best strategies available to maximize the ROI, with a deposit cap of 21,000 wBTC. This is what makes this vault unique, as opposed to having just a yield source that can go down and make your position not worth it, the funds are actively managed to ensure the user gets the best returns on their capital possible in the market.
The strategies implemented for deposited assets in the vault are always changing to maximize the ROI achieved. You can use Yearn-Hub to check current capital allocation, what strategies are being utilized and more constantly updated details regarding the vault.
<aside> 📕 Use the "allocation" tab on the Yearn-Hub to see a Highcharts pie chart widget with the exact % of capital deployed to each strategy.
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Below you will find detailed explanations for every strategy that the vault currently runs. Note that they are constantly being modified and updated:
wBTC are provided as collateral on MakerDAO in the WBTC-A CDP (Collateralized Debt Position) to mint DAI. These newly minted DAI are later deposited on yearn.finance to generate a yield (funds are now on yvDAI). The yield generated is used to buy wBTC back.
Keeper: 0x736D7e3c5a6CB2CE3B764300140ABF476F6CFCCF. Rewards: 0x710295b5f326c2e47E6dD2E7F6b5b0F7c5AC2F24. Strategist: 0x710295b5f326c2e47E6dD2E7F6b5b0F7c5AC2F24. Vault: 0xA696a63cc78DfFa1a63E9E50587C197387FF6C7E.
wBTC are deposited in the Pleurotus Field vault on mushrooms.finance to start farming Mushroom tokens (MM). MM tokens are then sold in the open market to buy wBTC back.