diff --git a/dgraph/cmd/live/run.go b/dgraph/cmd/live/run.go
index b147d71192d..97b35367575 100644
--- a/dgraph/cmd/live/run.go
+++ b/dgraph/cmd/live/run.go
@@ -337,8 +337,10 @@ func setup(opts batchMutationOptions, dc *dgo.Dgraph) *loader {
 		var err error
 		db, err = badger.Open(badger.DefaultOptions(opt.clientDir).
 			WithTableLoadingMode(bopt.MemoryMap).
-			// TODO(Ibrahim): Remove compression level once badger is updated.
-			WithSyncWrites(false).WithZSTDCompressionLevel(1))
+			WithCompression(bopt.ZSTD).
+			WithSyncWrites(false).
+			WithLoadBloomsOnOpen(false).
+			WithZSTDCompressionLevel(3))
 		x.Checkf(err, "Error while creating badger KV posting store")
 
 	}
diff --git a/dgraph/cmd/zero/run.go b/dgraph/cmd/zero/run.go
index b6cf6a49c43..0cad468c495 100644
--- a/dgraph/cmd/zero/run.go
+++ b/dgraph/cmd/zero/run.go
@@ -217,10 +217,9 @@ func run() {
 	// Open raft write-ahead log and initialize raft node.
 	x.Checkf(os.MkdirAll(opts.w, 0700), "Error while creating WAL dir.")
 	kvOpt := badger.LSMOnlyOptions(opts.w).WithSyncWrites(false).WithTruncate(true).
-		WithValueLogFileSize(64 << 20).WithMaxCacheSize(10 << 20)
+		WithValueLogFileSize(64 << 20).WithMaxCacheSize(10 << 20).WithLoadBloomsOnOpen(false)
 
-	// TOOD(Ibrahim): Remove this once badger is updated.
-	kvOpt.ZSTDCompressionLevel = 1
+	kvOpt.ZSTDCompressionLevel = 3
 
 	kv, err := badger.Open(kvOpt)
 	x.Checkf(err, "Error while opening WAL store")
diff --git a/go.mod b/go.mod
index 6b7df9e1414..5b2d6a9a948 100644
--- a/go.mod
+++ b/go.mod
@@ -16,9 +16,8 @@ require (
 	github.com/blevesearch/segment v0.0.0-20160915185041-762005e7a34f // indirect
 	github.com/blevesearch/snowballstem v0.0.0-20180110192139-26b06a2c243d // indirect
 	github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd
-	github.com/dgraph-io/badger/v2 v2.0.1-0.20191220102048-ab4352b00a17
+	github.com/dgraph-io/badger/v2 v2.0.1-rc1.0.20200316175624-91c31ebe8c22
 	github.com/dgraph-io/dgo/v2 v2.2.0
-	github.com/dgraph-io/ristretto v0.0.1 // indirect
 	github.com/dgrijalva/jwt-go v3.2.0+incompatible
 	github.com/dgryski/go-farm v0.0.0-20191112170834-c2139c5d712b
 	github.com/dgryski/go-groupvarint v0.0.0-20190318181831-5ce5df8ca4e1
diff --git a/go.sum b/go.sum
index a49abf7b547..b6f3c495231 100644
--- a/go.sum
+++ b/go.sum
@@ -76,13 +76,12 @@ github.com/davecgh/go-spew v1.1.1 h1:vj9j/u1bqnvCEfJOwUhtlOARqs3+rkHYY13jYWTU97c
 github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
 github.com/dgraph-io/badger v1.6.0 h1:DshxFxZWXUcO0xX476VJC07Xsr6ZCBVRHKZ93Oh7Evo=
 github.com/dgraph-io/badger v1.6.0/go.mod h1:zwt7syl517jmP8s94KqSxTlM6IMsdhYy6psNgSztDR4=
-github.com/dgraph-io/badger/v2 v2.0.1-0.20191220102048-ab4352b00a17 h1:BxXd8isFVcup+jlLnnEN22xhB+UwLMgAgk56kDxy9AY=
-github.com/dgraph-io/badger/v2 v2.0.1-0.20191220102048-ab4352b00a17/go.mod h1:YoRSIp1LmAJ7zH7tZwRvjNMUYLxB4wl3ebYkaIruZ04=
+github.com/dgraph-io/badger/v2 v2.0.1-rc1.0.20200316175624-91c31ebe8c22 h1:X2g/STOldw/iNkdP9BHI/8zHe4N/Lkp8Z4jLyywtnCI=
+github.com/dgraph-io/badger/v2 v2.0.1-rc1.0.20200316175624-91c31ebe8c22/go.mod h1:3KY8+bsP8wI0OEnQJAKpd4wIJW/Mm32yw2j/9FUVnIM=
 github.com/dgraph-io/dgo/v2 v2.2.0 h1:qYbm6mEF3wuKiRpgNOldk6PmPbBJFwj6vL7I7dTSdyc=
 github.com/dgraph-io/dgo/v2 v2.2.0/go.mod h1:LJCkLxm5fUMcU+yb8gHFjHt7ChgNuz3YnQQ6MQkmscI=
-github.com/dgraph-io/ristretto v0.0.0-20191025175511-c1f00be0418e/go.mod h1:edzKIzGvqUCMzhTVWbiTSe75zD9Xxq0GtSBtFmaUTZs=
-github.com/dgraph-io/ristretto v0.0.1 h1:cJwdnj42uV8Jg4+KLrYovLiCgIfz9wtWm6E6KA+1tLs=
-github.com/dgraph-io/ristretto v0.0.1/go.mod h1:T40EBc7CJke8TkpiYfGGKAeFjSaxuFXhuXRyumBd6RE=
+github.com/dgraph-io/ristretto v0.0.2-0.20200115201040-8f368f2f2ab3 h1:MQLRM35Pp0yAyBYksjbj1nZI/w6eyRY/mWoM1sFf4kU=
+github.com/dgraph-io/ristretto v0.0.2-0.20200115201040-8f368f2f2ab3/go.mod h1:KPxhHT9ZxKefz+PCeOGsrHpl1qZ7i70dGTu2u+Ahh6E=
 github.com/dgrijalva/jwt-go v3.2.0+incompatible h1:7qlOGliEKZXTDg6OTjfoBKDXWrumCAMpl/TFQ4/5kLM=
 github.com/dgrijalva/jwt-go v3.2.0+incompatible/go.mod h1:E3ru+11k8xSBh+hMPgOLZmtrrCbhqsmaPHjLKYnJCaQ=
 github.com/dgryski/go-farm v0.0.0-20190423205320-6a90982ecee2/go.mod h1:SqUrOPUnsFjfmXRMNPybcSiG0BgUW2AuFH8PAnS2iTw=
diff --git a/worker/server_state.go b/worker/server_state.go
index b230454618e..71373168032 100644
--- a/worker/server_state.go
+++ b/worker/server_state.go
@@ -131,8 +131,9 @@ func (s *ServerState) initStorage() {
 		glog.Infof("Opening write-ahead log BadgerDB with options: %+v\n", opt)
 		opt.EncryptionKey = key
 
-		// TODO(Ibrahim): Remove this once badger is updated.
-		opt.ZSTDCompressionLevel = 1
+		opt.ZSTDCompressionLevel = 3
+		opt.Compression = options.ZSTD
+		opt.LoadBloomsOnOpen = false
 
 		s.WALstore, err = badger.Open(opt)
 		x.Checkf(err, "Error while creating badger KV WAL store")
@@ -153,6 +154,10 @@ func (s *ServerState) initStorage() {
 		glog.Infof("Opening postings BadgerDB with options: %+v\n", opt)
 		opt.EncryptionKey = key
 
+		opt.Compression = options.ZSTD
+		opt.ZSTDCompressionLevel = 3
+		opt.LoadBloomsOnOpen = false
+
 		s.Pstore, err = badger.OpenManaged(opt)
 		x.Checkf(err, "Error while creating badger KV posting store")