Badger DAO reported last Tuesday, August 3, through its Twitter account, that with the approved BIP 63, Badger Boost will receive a Power Up with its revised model that will be launched soon.
“Badger Boost is a way to increase your rewards in BadgerDAO Setts, which is derived from your Badger and DIGG balances in Ethereum. The higher the ratio of your native balance (such as bBadger or DIGG LP) compared to the non-native balance (such as funds deposited in BTC Setts), the higher the Badger token rewards you receive on your non-native vault positions. This relationship is called the Participation Ratio, and the basic formula, introduced in BIP 24, is relatively simple: Participation Ratio = [$ value of the BADGER balance + $ value of the DIGG balance] / [$ value of the positions established with no participation native]”, he said through an article published on the Medium platform.
The company explained that a couple of weeks ago, a model change was introduced to the community that makes Boost more powerful on a topic-specific Discord channel. As a result of the discussion, a new way of approaching the Boost calculation emerged. This new model was later posted on the governance forum as BIP 63, passed the snapshot with 99.83% approval, and will be available in the app soon.
In his view, the new model for calculating the multiplier improves Boost’s scalability and creates a direct connection between user engagement rates and the level of rewards they receive.
“There will be 20 tiers with a specific multiplier assigned to each engagement ratio rank. So, each Sett will have 20 APR levels, and all users of each level will have the same APR in Badger rewards. All underlying rewards (such as Curve LP fees or Convex token rewards) are not affected by the Boost”, he added.
According to the company, when users level up within the new model, their multiplier increases at least as much as their Participation Ratio has increased. “So, for example, going from 10% to 15% Stake Ratio increases the multiplier 1.5x from 200 to 300, while going from 4% to 8% makes it go up 3x from 50 to 150”, he said.
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In terms of distribution, the company noted that Badger Boost Power-Up means fewer rewards for the bottom of the participation rate and more for the top. It also encourages users to increase their native balances regardless of their current position. The closer they are to the threshold of the next level, the cheaper it will be to level up.
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