Discussion: Delist bDIGG

# Delist bDIGG

BadgerDAO’s frontend was recently attacked, with the stolen funds totalling $120m.

https://www.theverge.com/2021/12/2/22814849/badgerdao-defi-120-million-hack-bitcoin-ethereum:

On Wednesday night, someone drained funds from multiple cryptocurrency wallets connected to the decentralized finance platform BadgerDAO. According to the blockchain security and data analytics Peckshield, which is working with Badger to investigate the heist, the various tokens stolen in the attack are worth about $120 million.

PeckShield points out one transfer that yanked 896 Bitcoin into the attacker’s coffers, worth more than $50 million.

DIGG is an elastic supply crypto asset pegged to the price of Bitcoin and governed by BadgerDAO.

DIGG is not backed by Bitcoin under management. Instead, DIGG relies on parameters built into its smart contracts in order to maintain a loose peg to BTC.

Every day, a “rebase” occurs. If the price of DIGG is greater than 1.05 BTC, a positive rebase occurs and the supply of DIGG in wallets and smart contracts increases. If the price is under .95 BTC, the supply decreases. If the price is between .95 and 1.05 BTC, the supply remains unchanged.

In this way, the smart contract works to push circulating supply of DIGG closer to an equilibrium where the market demands an amount of DIGG such that its price equals the current price of BTC.

Rebases change the number of DIGG tokens you see in your wallet, but does not change your percentage ownership of total supply.

Holding DIGG in your wallet (or staked as bDIGG) increases your APYs in other Vaults as part of the Badger Boost system.

bDIGG is an interest-bearing receipt token you receive after depositing your DIGG in our single asset Sett Vault, representing your share of DIGG in the Vault.

bDIGG does not correspond 1:1 with DIGG. As interest accrues inside the vault, the value of bDIGG increases against DIGG.

Should bDIGG be delisted?