BIP 100 - Allocation of Unclaimed ibBTC Rewards (Take 2)

The prior snapshot on this topic was deemed to be invalid due to problems with the voting strategies causing users to be unable to vote. Badger believes all voices should be heard and the Council elected to re-run this vote.

Also, option 4 is new. It was requested by the victims of the hack.

TL;DR

There is ~$300k left in an ibBTC multi-sig from the yields generated by assets used to mint ibBTC. These funds are user funds but the users themselves cannot be identified. This BIP proposes options for how to allocate these funds for the benefit of the DAO and its users.

Option 1: Seed Initial eBTC Liquidity

Sell the assets and place them into a tightly bound wBTC / eBTC Uniswap v3 pool with 0.01% fees. This would be provide for great initial and perpetual liquidity, allowing for Badger to have an initial pool to swap in and out of for many users that we don’t need to incentivize with further Badger tokens. This plan assists in the vision of eBTC as a permissionless and perpetual option by providing initial liquidity without any drain on Badger emissions. Once eBTC is deployed, this option would see the LP launched by the treasury in support of eBTC.

Option 2: Extraordinary Bootstrapping Yield for eBTC

This option would see the funds sold and then used on the launch of eBTC to provide for extraordinary yield for the launch of eBTC liquidity pools. This would provide for a bootstrapping phase for eBTC of approximately 10% APR on $3M of initial liquidity. Note that this plan would see those funds distributed in conjunction with any other sources of yield and incentives as provided for in the treasury controlled launch of the eBTC token.

Option 3: Community Council Controlled Yield Assets

This option seeks to place the funds at the discretion of the community council with the purpose of investing and stacking more yield assets. The Community council would decide on what assets to keep and what to sell and then seek to use those yield assets across de-fi to build out a larger control of governance tokens and positions. This idea does not seek to emit the principal at all, but instead to invest the funds and then keep a portion of the earned yield to reinvest and emit a portion of the earned yield to vault depositors.

In this model, the council will attempt to adhere to the following;

1. Invest in a variety of yield bearing assets and stack them perpetually until the launch of eBTC. This may include the market purchase of Badger tokens for depositing in LPs at a rate not to exceed 50% of the total yield being generated.
2. The yield and governance stacking phase will last for 6 months to allow for an optimum investment of yield bearing assets after which time emissions will begin.
3. Once the emissions phase begins, the council will seek to emit 50% of the monthly yield to vault depositors and retain the other 50% for the stacking of more governance and yield bearing tokens.

In this option, the community council will decide on the investment of all funds but will need to draft a new BIP to decide on where emissions go once the initial 6 month period has elapsed.

Option 4: Allocate Funds to Restitution

Badger BIP 80(a), 80(b) and 80(c) outlined the terms of restitution. BIP 80(a) voted to allocate 2mm BADGER over a 24 month period.

If this option is selected, the assets in question will be sold into BADGER and allocated to the restitution program in addition to the 2mm BADGER allocated in BIP 80(a).

Timing of the sale will be coordinated by the Badger Treasury Council to minimize slippage of the sold assets, optimize purchase price of the BADGER tokens while concluding the allocation of BADGER tokens to restitution before the restitution program is scheduled to mature.

Option 5: None of the Above