Badger Sett is a yield aggregator product that leverages automated strategies to generate yield for user deposits of various underlying assets. They are non-custodial, transparent, and users can withdraw their assets at any time.
The bulk of existing Setts are based on the Yearn Vaults V1 architecture, expanding it with new strategies, a new fee structure, and modifications to the governance of the system.
Yearns' documentation captures the premise best:
Capital pools that automatically generate yield based on opportunities present in the market. Vaults benefit users by socializing gas costs, automating the yield generation and rebalancing process, and automatically shifting capital as opportunities arise. End users also do not need to have a proficient knowledge of the underlying protocols involved or DeFi, thus the Vaults represent a passive-investing strategy.
Moving forward, we will be developing a large portion of Setts & Strategies with a Yearn V2 based architecture. Most notably, this will support multiple active strategies per Sett.
The active Governance module (currently the Dev Multisig) can elect trusted parties to hold various permissions such as the right to run keeper operations or enter emergency withdrawal mode.
Contract upgradability rights exist for all Setts unless explicitly burned.
There are two Sett systems, one for core Badger strategies, and one for partner strategies.
In-house Setts to generate organic yield on BTC-related assets and support the Badger token ecosystem.
renbtcCRV Curve LP
sbtcCRV Curve LP
tbtcCRV Curve LP
Liquidity for Badger assets on Uniswap and Sushiswap is incentivized.
Uni LP Badger<>wBTC
Uni LP Digg<>wBTC
Sushi LP Badger<>wBTC
Sushi LP Digg<>wBTC
Sushi LP wBTC<>ETH
These vaults deposit into the vault systems of our partners, leveraging their strategies for organic yield while adding Badger/Digg incentive rewards on top.
Harvest : renbtcCRV Curve LP