Badger DAO Treasury Council�Badget 2024 - Q1 - Association

Jan 2024

First Principles to power eBTC growth

eBTC from First Principles

Delivering the first and more competitive native looping and leverage product for the ETH/BTC pair

Building towards launching eBTC

Technical development milestone - Launch eBTC

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Web3

1. Launch new testnet for release-0.6
2. Complete continued external review of release-0.6
3. Launch initial Eth-variant Zaps (enter/increase/exit collateral positions in native ETH, WETH, stETH, wstETH)
4. Go live with pre-launch bug bounty (last official audit)
5. Launch Guardrail monitoring services
6. Execute multiple incident response drills pre launch in accordance with the IR plan
7. Merge final audit recommendations
8. Launch eBTC protocol on mainnet
9. Go live with official post launch bug bounty (Immunefi)

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Web2:

1. Release eBTC SDK
2. Support new testnet deployment in eBTC.finance dapp
3. Build, launch, and run all bots (liquidation, MEV, etc)
4. Integrate dedicated incentive program into eBTC.finance dapp
5. Support ETH variant zaps in eBTC.finance dapp on mainnet
6. Deploy Reward distribution engine in eBTC.finance dapp
7. Launch eBTC.finance dapp with mainnet contracts deployed
8. Launch & support eBTC tracking dashboard in collaboration with Block Analitica. (examples: Maker, Aave, Compound, Spark)

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Delivering the first and more competitive native looping and leverage product for the ETH/BTC pair

Building towards launching eBTC

Product development milestone - Launch eBTC

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1. Finalize launch plan to manage risk and protocol execution (in collaboration with Block Analitica and Steakhouse through the BALCO) after public community feedback
2. Design and execute seeding plan in collaboration with Treasury Council to bring eBTC to market and ensure a stabilized launch
3. Execute the marketing launch plan and establish baselines to grow engagement (PR and influencer engagement, establish a pre/post launch baseline on content performance)
4. Design and launch new incentive program with eBTC going live and a new partner
5. Finalize and support 2 new eBTC protocol integration partners to go live shortly after launch
6. Establish and start new BADGER token push in Asia with service providers across influencer, content, contests and social media marketing in conjunction with eBTC launch.

Expand perspectives with expert partners

Resource Summary

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Expand into Asia

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Association resources:

• 20 service providers
• 10 full time contractors in core development and operations
• 2 part time user support resources
• Note that none of these resources capture >10% of budget

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Key Q1 SP progression includes:

• Security execution for Q1 milestones (+2 private audits expected to diversify & Immunifi public bounty)
• New public relations SP to support launch
• Source upgraded creative and social media execution resources

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Non-negotiable investment in smart contract audits for future milestones and upgrades

• Maintain security best practices for technical development support
• Build step by step to enable eBTC CDP system safety and growth
• Always strengthen end to end security approach

Scalable growth investments in marketing & localization for new expansion and integrations

• Expand $BADGER into Asia with Korea entry with localized partner and market maker
• $BADGER well positioned with BTC narrative and market timing
• Monitor CDP performance to enable integration partner pipeline

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Accelerate expertise and decentralization

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Security focused portfolio of web2 & web3 partners

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Operational Milestone - Execute transparency plan

Transparency plan

Why does this matter?

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• Bring insight into the technical, product, and operational performance of the Association
• Educate on what’s being worked on, how it’s being developed, what’s blocking and what’s progressing
• Enable agility to react to market dynamics and development milestones

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Key elements:

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1. Quarterly ‘State of the Association’ report
2. Quarterly town halls
3. Monthly builder updates from tech & product
4. Public eBTC dashboard (TVL, positions etc.)
5. Public eBTC code
6. Public eBTC multisig repo
7. Public financials
8. Quarterly Budget with milestones across product, tech and ops

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Badget Q1 2024: Investment roadmap to achieving eBTC lift off

Badget 2024: Q1

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Directional elements for full year forecasted spend�- Contractor spend flat vs actuals with a higher degree of specialized SP’s�- Maintain high standard for audit and development for eBTC protocol �- Front load marketing to drive launch of a new stablecoin, integrations in key growth markets in Asia and go-to-market investments with partners�- Reduction in BADGER dilution, reserved for long-term incentive & growth partners

Key elements for Q1 2024

• Focus on getting eBTC live with the highest security standard possible
• Build with LP partners & leverage concentrated liquidity for volume
• Collaborate with the treasury council to seed capital and grow protocol owned liquidity
• Drive $BADGER marketing and awareness for growth markets in Asia, with Korea market entry

Overview of cost drivers

Badget 2024: Launching and accelerating eBTC

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Consulting and Contracting Fees down from 2023, with a greater focus on external expertise and service providers (Block Analitica, Steakhouse Financial, market-specific BD teams) -> Greatly increased efficiency in spend

Development Fees largely focused on audits, fuzz testing, monitoring and oracles, system economics, an increase from 2023 from moving into production and continuing development on protocol and auditing -> recommend not compromising on this spend, we will fight to bring actuals down but should budget accordingly

Legal Fees are largely a provision and could be a source of underspend if there are no major obstacles or uncertainties regarding the GTM -> foundational legal analysis has been done already but it is prudent to plan for additional costs and SP contract management

Marketing Expense increase behind putting eBTC into production and waking up BADGER from maintenance mode in 2023, plan is focused on Asian market whitespace including listings, community development and localization. Working with local web3 expertise with proven track record -> moving from development to production implies higher spend in GTM

Grants, Incentives and Other includes contingency reserves which are likely to be a source of underspend and market-making incentives or fees to drive growth -> organic liquidity bootstrapping with a view to taper off when LPs kick in

Ambitious but realizable path to break even through capturing incremental opportunities from WBTC as a CDP-coin

First Steps: CDP the Flippening

Note: Assumes $40k BTC and $2.1k ETH, as well as an average 150% CR in the protocol

Lending

Hodlers

Bridges

Liquidity

~100k in WBTC opportunity to be captured:

1. Cheaper source of leverage
2. Natively yielding BTC
3. Trust-minimized token

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