Marketing and expanding Basis Cash recognition is always our top priorities. Basis Cash team had held an AMA event with the Coin98 Wallet community, one of the leading crypto communities in Vietnam on February 7th. Thank Coin98 Wallet for supporting us.
A transcript follows.
Introduction from Basis Cash Team
Basis Cash is a purely algorithmic stablecoin that is designed to peg to 1 DAI. There is no collateral behind it, and the BAC supply is dictated by market demand.
Why is such a coin necessary?
All the major stablecoins in use today, USDC, USDT, DAI etc are all centralized in some way or another. All the issuers of these coins hold real dollars as collateral, which is positive for users’ confidence that each stablecoin is ‘worth’ 1$.
But this also leads to a big negative, which is a single point of failure. All these entities can choose to block/devalue/unpeg any of these coins at any time.
More importantly, they can come under regulatory pressure like the Stable Act last year in the US, which make it not ideal.
So this is why Basis Cash is designed to be completely decentralized and permissionless. Nobody anywhere can freeze your BAC or decide to pass a law against it.
The added benefit is capital efficiency, since we use no collateral.
This is a basic overview of how the protocol works:
3 tokens: Basis Cash (BAC), Basis Shares (BAS), Basis Bonds (BAB)
BAS supply is limited to 1M tokens. BAC and BAB have no caps on supply.
BAC is designed to be pegged to 1 DAI ($1) and there is a daily stabilization mechanism.
When BAC is trading above 1 DAI:
- BAC supply is increased by a factor of the current price of BAC
- Example: If BAC = $100, supply will increase by 99x
- Newly minted BAC is sent to the Boardroom as rewards to BAS stakers
- The resulting selling pressure is expected to bring BAC down to 1 DAI
When BAC is trading below 1 DAI:
- Basis Bonds (BAB) are available at a discount, to be purchased with BAC
- BAB does not expire and can be exchanged for BAC at any time, as long as the Treasury has funds available.
- BAB can be redeemed at a premium when BAC is back on-peg
- The resulting buying pressure is expected to bring BAC back up to 1 DAI
Q & A with Morty and yyctrader
Q1: What is the mission of BasisCash in the competitive market of cryocurrencies? And what marketing strategies are you willing to use to achieve greater adoption?
Answer: We, the core developers of Basis Cash, were early supporters & observers of Basis when it first launched, and to this day believe that it is one of the best ideas to have ever been put forward in crypto. While Bitcoin first got us interested in blockchain’s use cases, it was Basis that first truly inspired us, by painting a picture of a world that runs entirely on decentralized digital dollars the policies for which cannot be corrupted or politicized. Basis is more relevant now today than it ever was in 2017/2018 — with regulators striking back against the decentralized movement by cracking down on Telegram and Libra, while their governments are printing money faster than ever before in human history.
This is not a DeFi degen project. We are simply leveraging the industry’s excitement in the category to bring much deserved attention and engagement to the Basis Protocol, and to use this opportunity to distribute ownership in the protocol fairly.
Our only motivation is to bring the Basis Protocol into the world, and to serve its community in implementing Basis’ vision to become the first widely adopted decentralized dollar. To that end, we are committed to take no financial upside in Basis Cash’s success — we will raise no money and pre-mine no tokens. Instead, when we feel that the protocol has found reasonable product market fit.
For the marketing strategies we can divide into two parts:
1. Increasing the adoption of Basis Cash : Integrations with application that utilizes $BAC as a currency
2. Adding $BAC as a yield farming asset : This will bring short-term and mid-term demand for $BAC
Q2: What are the differences between BAB and BAC, which is the most beneficial of the two that will attract more investor to come in Basis Cash?
Answer:
- Basis Cash ($BAC): algorithmic stablecoin which is pegged to $1
- Basis Bonds ($BAB): conditional debt note that users can redeem basis bonds at redemption.
So BAC and BAB have different risk and rewards model. For BAC users could earn BAS by providing liquidity to BAC-DAI uniswap then stake their LP token and also use BAC as a stablecoin to send it to other person.
For BAB, users who have long term vision buys conditional debt note so that when the BAC restores the peg users would be able to earn premium upon redemption. Currently if users purchase bonds users would be able to earn 300% APY when they redeem.
Q3: We all know that there are many problems with the Ethereum network: scalability issues, high gas costs, slow speeds, etc. So, why did you choose to build a token on the ERC-20 Blockchain ecosystem? Why not build it on some scalable Blockchain?
Answer: Currently Ethereum chain has a lot of issue, slow blocktime, high gas fees etc. We have built on Ethereum because it has the most users to interact. We are opened to interact with other chains such as BSC and Polkadot parachains in the near future. And also HECO.
Q4: Defi is a very hot keyword at the moment, many projects have started cooperating with DeFi platforms. So is Basis Cash planning to cooperate with DeFi projects and develop #Basis Cash towards DeFi in the future?
Answer: So since the beginning of the project 2 months ago, our focus has been on building real use-cases and organic demand for BAC.
We have already integrated with many DeFi projects.
Currently BAC holders have the following options that are already live:
- Sushiswap: Provide liquidity to BAC/BAB or BAC/ETH to earn $SUSHI;
- Poolin MARS Project: Provide liquidity to BAC/MARS and stake your LP tokens to earn $MARS;
- Secret Network: Participate in Bridge Mining with BAC and earn $SCRT;
- Santiment Analytics: Provide liquidity to BAC/SAN to get access to Sanbase Pro;
- Deri Protocol: Deposit BAC to Deri Pool to mine DERI and will be able to provide liquidity with BAC there.
We’re also finalizing these:
- Curve: BAC/3crv StableSwap pool is live. BAS incentives are planned to be moved over from BAC/DAI post-migration, subject to governance approval.
- CREAM: BAC has been approved as a collateral asset, awaiting implementation.
- S Finance: BAC/DAI pool is live. Awaiting incentivization post-migration subject to governance approval.
- We are talking to various projects like Alpha Homora, 88mph etc for integration after we migrate to V2.
Q5: How secured is your smart contracts code, did you ever audit it via any third party? What has been the biggest challenge you have faced during development?
Answer: Basis V1 was audited by Certik. We are working with Haechi to audit V2.
We actually delayed the migration by 2 days to allow time for the community and public to review the V2 code.
In light of recent events, we would rather be conservative and have as many eyes on the code as possible.
So during the migration period we have decided to give Boardroom V2 stakers additional BAS emissions dynamically. This have been finished developing until the migration period but giving buffer time for users and community can publicly audit the contract as possible.
Q6: I find it very interesting that BASIS Cash consists of three tokens. Why did you decide to create an ecosystem based on multiple tokens instead of designing a single currency that includes all the features you want? What are the benefits of this
Answer: So the major problem for rebase tokens is that every “stablecoin” holder gets the potential debt. This dis-incentivize users to hold and use the currency as a daily basis. However, for basis cash users who purchase bonds have risk and reward profile to make the system work.
And most importantly one token can’t work two different feature that collides.
Q7: In recent years, technologies around the layer 2, solutions have developed dramatically. How does Basis Cash fit into the boom of layer 2 networks? What makes it unique and different from all other platforms of this type?
Answer: We think 2021 is the time for layer 2 protocols. We are also preparing integrations for layer 2 protocols (lending). Furthermore, by integrating into different chains we believe that basis protocol can be functioned from other chains with low gas fees.
Q8: What are the special advantages of Basis Cash to be able to defeat another competitor when the project’s goal has too many previous projects doing and developing?
Answer: Basis Cash is the original algorithmic stablecoin. Since we launched 2 months ago, there have been countless projects that have forked our code and tweaked parameters. Most of these projects are now dead since they have no way to innovate.
Our team has a roadmap in place, planning for BAC adoption over the coming months, and our dev team has proven their capabilities, as you can see from the constant updates to the protocol.
In other words, Basis is the OG, and we will rule.
Q9: Could you please elaborate more about your tokenomics? What’s the total supply and what kind of plans do you have regarding the token unlocks in the future?
Answer: Basis Shares (BAS) has a cap of 1M tokens. There was no pre-mine and no seed investors. Basis is a true fair launch project, and every BAS token currently out there was either market bought or farmed by users.
V2 will retain the 1M hard cap. We have no intention of raising it, as we will now have the flexibility to reallocate BAS emissions based on market conditions.
The DAO Treasury is funded by 2% of Seigniorage, and covers operational expenses and team compensation (all approved by Governance vote)
Q10: Basis Cash is currently going well and is receiving positive attention. What will you do to get more exposure and adoption? What is the Basis Cash message for the Community today?
Answer: Like mentioned above, we are integrating with various DeFi platforms with more in the works.
This serves 2 purposes of increasing BAC demand and use-cases, and gaining broader exposure for Basis Cash.
While many may be concerned about the recent volatility, we are confident that our innovations in V2 and beyond will result in BAC returning to peg.
We will be listed on DeFi Pulse shortly.
So our final message to the community is that the roadmap and vision are set, and we are going to execute.
Give us a few months, and BAC will be everywhere…
