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# System prepended metadata

title: '12/9/20 Digg Community Call #1'

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# 12/9/20 Digg Community Call #1
## Goals:
- Some short term feedback+ideas for the dev team around the launch
- Rough framework for long term vision (or a couple options) to open up for community/core contribution+discussion


## Agenda:

### Decide on principles (things we definitely do or do not want to do)
- Fully synthetic Bitcoin representation that long term users will feel comfortbale holding in their portfolio for bitcoin exposure
- Should not have any reliance on centralized Bitcoin representations (like holding wBTC in reserve)
### Decide on Goals (What do we want this to look like in 3, 6 months)
- Ponzi-with-a-purpose: Eventually have an asset that people WANT to hold
- Should bring value to $BADGER
- Should offer some utility to Setts
- Helps Bitcoin in some way??
- Able to be an interest earning BTC (dynamic rate but holders only rebase UP)
### Review and document rough outline for launch (just compile what currently exists and post for reference)
***EVERYTHING WILL BE PUT THROUGH THE GOVERNANCE FORUM FOR FEEDBACK***

- $DIGG is an AMPL fork
- Target Launch 12/20
- Daily Rebase
- 10 day distribution (10% multiplier)
- What setts are we thinking?
    - a couple LP vaults (uniswap, sushi, balancer)?
    - some "stabilizing" setts (use btc assets to auto buy/sell)

**Distribution**
- 6250 initial supply (~120m equilibrium cap)
- 50% to treasury
- 10% Retroactively dropped to badgerdao participants
- 40% farming
    - Sett stakers
    - $DIGG<>WBTC LPs
- 8 week release
- Rebasing to start immediately (or close to it)
- DAO to use treasury to bootstrap liquidity


### Discuss other rebasing projects in light of 1-3 and what we may or may not want to use from them

**AMPL** - People just gambling on the geysers, not stable at all but has a huge treasury of AMPL to incentivize exposure

**$BASED** - AMPL fork fair launched (anonymous)  Have pivoted to focusing on income generating activities (moonbase, Based Lending, etc)

**YAM** - AMPL fork fair launched (Not anonymous) Have pivoted to focusing on income generating activities (Umbrella, Yam Lending)

**Basis Cash** - Bond system, TBD, still new.  Optimism based on abstraction of risk to speculators

**Empty Set Dollar** - Coupon system, TBD, still new.  Optimism based on abstraction of risk to speculators

**TREE** - Failure in launch and distribution but interesting model (may be getting salvaged). A reserve is created that users can burn quadratic portion of holdings for a portion of.

## Notes

### My points to make
1. Bitcoin is intended to be a store of value and unit of account.
2. A rebasing asset is naturally speculative.  The "price" is stable but the "total value" of your holdings changes on rebase.  It is a bet on the success of badgerDAO
3. Following 1 & 2 $DIGG (as currently designed) will not be a replacement for someone that wants BTC exposure
4. No rebasing asset has gotten it "right" to this point but its still early

**Two Options as I see it**
Both isolate rebasing to speculators
1. Vault system ($SATS model) where $DIGG is collateral for a secondary asset.  Rebasing replaces liquidators, $SAT is non-rebasing (unless we want interest accrual)
2. "Bond" System where speculators lock up $DIGG in return for claim on larger portion of future rebases

### Questions to Hit
- Should we include an overweight balancer pool (90/10 wbtc/digg)
- should we use sushiswap for LP (get around routing issue on uniswap)
- Should we target a steady growth in price (btc+1%)?
- Whats the biggest driver of instability in rebasing assets?

## Takeaways
- DefiBuzz channel
- possibly use chainlink oracles
- 