Understand the three token design and distribution methods of the newly launched algorithmic stable currency Basis Cash
Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom)Editor's Note: This article comes from
Chain News ChainNews (ID: chainnewscom)
Chain News ChainNews (ID: chainnewscom)
, author: DeFiMorty, translation: Lu Jiangfei, published with authorization.
Unlike other DeFi protocols, the algorithmic stablecoin project Basis Cash has launched two farmable tokens, one is Basis Cash, which is a stablecoin whose value is pegged to $1; the other is Basis Share, which is an ownership token Tokens can not only increase in value through the increase in the use of Basis Cash, but also profit through the continuous issuance of Basis Cash (inflation).
This guide will provide a step-by-step overview of the Basis Cash distribution process and mechanics:
How does the Basis Cash mechanism work?
In fact, the Basis Cash protocol contains a total of three tokens, namely Basic Cash, Basis Share and Basis Bond. Among them, Basis Share and Basis Bond are designed to promote Basis Cash to always be anchored to the price of $1.
We will describe how Basis Share and Basis Bond work in detail below, and design two practical scenarios:
Basis Cash under $1
Basis Cash price above $1
When the Basis Cash price falls below $1
When the transaction price of Basis Cash is less than $1, users can enjoy a certain discount to purchase Basis Bond. The purpose of this is to establish the price stability of Basis Cash. Users who purchase Basis Bond through discounts will be able to redeem tokens in the future Can get a certain profit.
Under certain conditions, each Basis Bond will promise to allow the holder to exchange Basis Cash at a ratio of 1:1 at some point in the future. Every time a user purchases Basis Cash, Basis Bond is burned, ensuring a reduced supply of Basis Cash in circulation. Basis Bond has no interest expense, and no maturity or expiration time. In fact, as long as the price of Basis Cash rises above $1, the holder can directly use Basis Cash and redeem it directly at a 1:1 exchange rate.
It should be noted that users can redeem the purchased Basis Bond at a ratio of 1:1 only when the Basis Cash price is higher than $1. This mechanism can ensure that Basis Bond holders reduce redemption losses and prevent Causing an unnecessary increase in supply.
When the Basis Cash price is above $1
When the Basis Cash price is higher than $1, the contract will allow the Bond redeemer to redeem the Basis Bond directly. If Basis Cash trades above $1 after the Basis Bond is redeemed, which would lead to an increase in demand for Basis Cash, then new Basis Cash tokens would need to be minted and distributed to Basis Share holders.
For example, let us assume that the Basis Cash price is higher than $1 after the Basis Bond redemption, then in this case, the Treasury Contract will mint new Basis Cash tokens, but at the same time it will also generate seigniorage , this seigniorage will be allocated to a so-called “Boardroom” where users can stake Basis Shares and earn seigniorage daily based on the Basis Cash price.
Token Distribution Scheme Overview: Zero Supply Minting / Purely Community Distribution
The initial distribution of Basis Cash tokens will give priority to those users who deposit DAI (MCD), yCRV, USDT, sUSD and USDC into the distribution contract. A total of 50,000 Basis Cash tokens will be distributed to these "depositors", 10,000 per day . At the same time, the same number of tokens will be allocated to each corresponding stablecoin liquidity pool, and the number of stablecoin deposits in each pool is limited to 20,000.
After that, Basis Shares will be given to users who provide liquidity in the Basis Cash(BAC)-DAI pool of Uniswap v2, where users can deposit liquidity provider (LP) tokens into the allocation contract and earn Basis Shares. Basis "Shares Pool 1" will allocate 750,000 Basis Shares, initially 6250 Basis Shares will be deposited first, and then every 30 days will be deposited in descending order according to the proportion of 75%.
How to get distribution rewards?websiteStep 1: Earn Allocated Basis Cash Tokens
1. Go to the Basis Cash App page. Please visit first
website
, which presents the basic farm page user interface.
2. Choose a stablecoin pool (DAI, SUSD, USDC, USDT, yCRV)
Click on "Pool" and then all you need to do is provide a connection to the Metamask browser extension to unlock the wallet.
Once you have chosen a stablecoin, you can make a deposit. The maximum deposit amount for each account in each liquidity pool is 20,000 tokens, and each liquidity pool will allocate 10,000 Basis Cash within 5 days to provide real-time liquidity for the system. The token distribution progress of each stablecoin pool is shown in the figure below:
Step 2: Earn the assigned Basis Share
When you come to the second step, it means that you have now become a potential holder of Basis Share. The second step may be a little troublesome, but as long as you read the instructions in this article carefully, you can do it very easily. The key to this step is: provide price liquidity to Uniswap and earn Basis Share rewards.<>"Basis Share Pool 1"
The following figure is an example of "Basis Share Pool 1":
First of all, users may need to "start from scratch" to earn Basis Share, so they must pay to Uniswap V2's DAI
Liquidity is provided in the Basis Cash pool. As shown in the picture above, there is a display link at the bottom of the page, click to redirect to the liquidity provision page, so that you can easily participate and provide liquidity.
After providing liquidity on Uniswap, you can return to the "Basis Share Pool 1" page, at which point you will be allowed to deposit LP tokens in BAC_DAI-UNI-LP v2. "Basis Share Pool 1" will allocate a total of 750,000 tokens. Initially, 6,250 Basis Shares will be deposited, and then deposited every 30 days at a rate of 75%. The distribution trend of tokens is shown in the figure below:<>"Basis Share Pool 2"
The following figure is an example of "Basis Share Pool 2":
