Detailed explanation of algorithmic stable currency, blockchain revolution or scam? | Roast Star Selection

It doesn't matter whether the cat is black or white, as long as it catches mice, it is a good cat. Whether it is centralized fiat currency mortgage, decentralized token mortgage, or algorithm adjustment, a stable currency that can make money is a good stable currency.

Algorithmic stablecoins were proposed by Basis as early as 2018, during which Basis closed its doors. Since last year, this concept has been re-fired, Ampl, Esd, and Basis, which has been revived by the community. The third generation of algorithmic stable currency reappears in the rivers and lakes!

Is this a blockchain revolution, or a blockchain scam?

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Basis's idea is very good, but the concept of stocks and bonds in the designed system constitutes "securities" in the eyes of the US Securities and Exchange Commission (SEC), so it is regulated and sanctioned by the SEC.

This past incident brought initial attention to the project, and at the end of December 2020, Basis made a comeback. Different from the high-profile three years ago, this time Basisanonymousanonymoussecondary title

• Users can pledge BAS in Basis Boardroom to become shareholders of Basis. When the price of BAC is higher than $1.05 (above water), BAC is inflated proportionally, and shareholders get inflated BAC;

• When the price of BAC is lower than $1 (under water), users can use BAC to buy BAB at a discount (the price is the square of the BAC price), becoming a creditor and BAC receiver/banker. When the price of BAC is higher than $1.05 (and then on the water), BAC will inflate, and creditors will give priority to 1:1 BAC that has just been exchanged; after repaying the bond, the inflation margin will be distributed to BAS.

In this way,Equity"Equity"debt"debt"BAB come and take it together。

Not only that, on the basis of the original three functional token designs, Basis also combines the most popular liquidity mining model in 2020:

• Obtain the initial 50,000 BACs (closed) by staking DAI, USDC, USDT and other mainstream stablecoins.

• After obtaining BAC, mine BAS (capped at 100 million) by providing BAC-DAI liquidity on Uniswap, and become a shareholder and BAC receiver/crop;

• After obtaining BAS, mine BAS by providing BAS-DAI liquidity on Uniswap, and become a receiver/crop of BAS;

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Sweeping wool and high yield are important factors to attract users to enter the market. Basis was launched at the end of November last year, and the initial number of BACs was only 50,000. In order to mine precious BAS, you must buy BAC/BAS, and allocate capital DAI to make the market on Uniswap.

This provides a tray of funds for BAC/BAS, and some wool parties poured in to mine and sell BAC with stable coins without loss.The price of BAC was once as high as 900 DAI, and then fell all the way. Everyone knows that after BAC starts rebase (the actual rebase time is December 11th), the price will return to $1 or even underwater sooner or later.

As the time to start the rebase approached, BAC began to enter an accelerated decline.

The game at this stage before the start of the rebase is mainly about how much you are willing to spend to buy BAC/BAS and do (receive) the market (market) for it to mine precious BAS, or it is more cost-effective to buy BAS directly from the secondary market (in Uniswap) .

During this period, the rate of return of mining is also very outrageous. Under the huge amount of money, there is no shortage of brave men.Later results showed that neither of these games made senseBig, because this wave of people have all gone ashore.There is a group of friends named "Big Watermelon Junior", who bought BAC for mining at the price of 900DAI. BAC fell all the way, crying in the group about hanging himself, and after his mood stabilized, he was ready to go to sea. Now he is in the clubhouse, making money to buy The mining machine has been used to mine steadily, and has become a legend in the Basis creation group. There is another interesting thing. At that time, there was a girl’s WeChat rebase your mom if you want rebase, which attracted the attention of water friends. Some water friends even bid for 1 BTC to ask for her contact information. For a while, the atmosphere in the group became active, and this sentence became a classic rebase meme. By the way, I forgot to say, this community is the BasisCash WeChat group, and water friends all call itFounding Shareholders of the Federal ReserveSelf-proclaimed.

After a few days of "delay" than expected, the expansion of BAC officially started at 8 o'clock in the morning of December 11th in Beijing. Since then, it has been this point every day, and many group members have lived a healthy life of going to bed early and getting up early, and receiving food according to order.

Because BAC fell rapidly before the first expansion, many people in the group felt that BAC could be smashed to zero. At the same time, many scientists made window transactions before and after the expansion, ambush to buy BAS and get BAC dividends, then sell quickly and smash the dividends Get the BAC.Under the Vanity Fair, where everyone has their own ghosts, a wonderful scene is coming: At the moment when Basis paid dividends for the first time (the actual situation is that 1 BAS was divided into nearly 11 BACs), the price of BAC was smashed to $1.4, and then returned to $4 in an instant, while the price of BAS was pulled down by scientists before it inflated. After more than $700, it fell back to around $250, and at the same time, BAC held up around $4.

The boots fell to the ground, but the BAC did not collapse! This situation is something that many water lovers never expected. At this price, the daily rate of mining with BAC/DAI is around 30%. At this time, the focus of debate in the Genesis Group is how long BAC will fall below $1. Many people still firmly believe that as long as BAC falls below 1, BAS will return to zero, because they cannot get BAC dividends. This is the biggest divergence among players at the beginning of BAC's expansion.

What's even more exciting is that BAC has remained above $1 for nearly 20 days! During this period, the price of BAS dropped from $250 after the first inflation to around $130, and 4 days later, the price of BAS also returned from the low point to close to $500.

Afterwards, the first round of crops ran away, and the BAS was brought back to around $120, but it doesn't matter, change the farm and do it again! After the second round of crops started, BAS reached nearly $900 by the end of the month!During this period, each BAS can get 10-30 BAC dividends every day (except for the few days when the dealer changes in the middle, there is no dividend, and the BAC price is less than $1.05 in the past few days from 12/18-12/22 but it has not collapsed). This is the God Mine! rush! rush! rush!

The core game logic at this stage is: when the circulation of BAS is still very small at the beginning, as long as the price of BAS does not fall below $100, the daily rate of BAC/DAI mining will remain above 10%. If there is a crop that controls BAS with a small amount of funds, people will continue to use DAI to buy BAC and pledge BAC/DAI to mine, sell and withdraw BAS, and crops just sweep up the scarce BAS, and will get a large amount of BAC for daily dividends. New miners who buy BAC with DAI.

Once the consensus of God Mine is established, BAS will rise and can be sold to new receivers! The most exciting thing is that this logic actually played two rounds on the BAS! The logic of the second round is similar to that of the first round. The difference is that after the second round, the circulation of BAS is not small, and will increase. At this time, it is necessary to rely on the power of faith and FOMO to let more people buy Enter the BAS and complete the second round of the banker's escape!

3) The story behind the decisive battle

The logic is clear, and the story has to be told together: in the first round, the protagonist of the story is Ah Hong from the four-wheel drive brother group. After 5 days, I made a lot of money and ran away, and I continued to trade imitation projects such as Mith and Frax. Ever since Ah Hong played Basis, she has been a little bit drifting, claiming to be the 30 most financially savvy people in the world on social media. This made the shareholders of the Federal Reserve amused, especially after Ah Hong ran away, everyone joked that he was the top 500 people in the world who knew finance best, and Ah Hong could only be ranked 501st.

After Ah Hong ran away in the first round, the atmosphere in the group was a little depressed, and the shareholders became restless, thinking that creditors were going to enter the market to destroy BAC and buy BAB. Little did they know that there was a mysterious force behind Ah Hong's Banner, this mysterious force is the veterans who have participated in the second uncle 120 defense battle. They are organized and methodological. They first build positions secretly, and then play the art of calling orders. 8848 is the end of the game. After Ah Hong got off the car, the style of the group changed suddenly, and it soon became a situation where KOLs shouted slogans, and shareholders followed without brain-reading machines, with thousands of messages a day.At that time, the situation was spectacular. In front of all kinds of FOMO texts every day, he could still sit still. It is estimated that Liu Xiahui was reborn.for example:

for example:

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A circulation of close to 90 million BACs! What does this mean? If you ignore the usage scenarios brought about by BAC mining provided by various imitation disks, then the BAC/DAI pool in Uniswap needs to match 90 million DAI to maintain a 1:1 price, and DAI’s The total circulation has just exceeded 1 billion. Perhaps the power of FOMO has been exhausted at this time, and several first-tier exchanges have not listed BAS as expected.

After entering 2021, the invisible hand of the market began to play its role. When the market sentiment was high, BAC also fell below $1 without any additional offerings and no more takers.The third round started, the BAB mode was launched, and the Basis system also ushered in a real test.Faith is still so precious and stubborn. With the efforts of the shareholders of the Federal Reserve, the circulation of BAB is close to 40 million, and the destruction of BAC is close to 30 million. However, BAC still cannot return to the water.

Shareholders saw that before the dividend was distributed again, there was a mountain of 40 million debts, so they got out of the car one after another, and the lively scene in the group two weeks ago was gone.secondary title

The development of stablecoins is very interesting. It should be said that the innovation of AMPL has stimulated the development of Uniswap, and Basis has also provided a lot of nutrients for the decentralized stablecoin DAI.

For the U.S. dollar, after the failure of the gold standard, oil can be found as a commodity to carry the U.S. dollar trading market, which drives foreign exchange to be settled in U.S. dollars. Behind such a powerful application scenario is the comprehensive national strength of the United States.

For USDT, the leading US dollar stablecoin, with years of ecological foundation, user accumulation and scene exploration, it is now able to carry a large number of out-of-circle trade business, and its position is firm and unshakable. Not only that, the 94 incident was a huge watershed for USDT to open up the Chinese OTC market. Today, 99% of OTC transactions are done with USDT.

For Basis's stablecoin BAC, it also needs a scenario and opportunity that can bring huge potential energy, so that it can be accepted by the DeFi world, users in the currency circle, and even users in the traditional world outside the currency circle.It's just that under the current operation, BAC is more like an "unstable stable currency". The significance of hype is greater than that of stable currency. Purely relying on algorithms and market FOMO sentiment, the game will go to an extreme, and then self-regulate The mechanism fails and enters a dead state.

Most speculators hope that the new funds of speculators will push up and generate income instead of being optimistic about the value that the asset itself can generate. The algorithmic stablecoin trend led by Basis may enter a trough for a long time.

Finally, I ended with a sentence in the circle: Sorry, we failed. But still an interesting social experiment, perhaps far from a failure,Although the story of shareholders has temporarily come to an end, the story of creditors has begun to be staged again, the holders of nearly 40 million BAB are actively trying to restore the deadlock of Basis. Maybe when everything is low enough to turn into dust, the system will be rebuilt again.

Rebase your mom if you want rebase! 

Note: All names mentioned in this article are pseudonyms.