DIGG
Crypto Overview
Overview
DIGG is an elastic supply cryptocurrency launched in January 2021 by BadgerDAO. It was designed to track the price of Bitcoin (BTC) through a rebasing mechanism that adjusts token supply. The project aims to provide a Bitcoin-pegged asset within the Ethereum DeFi ecosystem.
Purpose and Utility
The primary intended purpose of DIGG is to serve as a synthetic version of Bitcoin on Ethereum, allowing users to gain BTC price exposure while leveraging Ethereum's DeFi capabilities. The token employs an elastic supply model where the number of tokens adjusts (rebases) to help maintain a price peg to Bitcoin.
Business Model and Implementation
The protocol operates through smart contracts that handle the rebase mechanism. When DIGG's price deviates from Bitcoin's price, the supply automatically adjusts to incentivize market participants to restore the peg. Users can stake DIGG in BadgerDAO's yield-generating vaults or provide liquidity in decentralized exchanges.
Real-World Adoption
DIGG has seen limited adoption within the DeFi ecosystem. While it maintains active trading markets and integration with BadgerDAO's ecosystem, its usage primarily revolves around trading and yield farming rather than its intended purpose as a Bitcoin price tracker.
Development Activity
The project is part of the broader BadgerDAO ecosystem, which maintains active development. However, specific development focused on DIGG has been minimal since its launch, with most updates related to the integration with BadgerDAO's other products.
Crypto Impact
To assign a comfort level investing in DIGG from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to DIGG.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.