# Based Money

> Based Money (Ticker: $BASED), is a DeFi (Decentralized Finance) protocol launched on August 12, 2020.

- Canonical URL: https://iq.wiki/wiki/based-money
- Categories: Projects & Protocols
- Tags: DeFi, Infrastructure
- Created: 2022-07-25T01:33:00.910Z
- Last updated: 2022-10-11T13:13:01.567Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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Based.Money (Ticker: $BASED), is a DeFi (Decentralized Finance) protocol launched on August 12, 2020[\[1\]](#cite-id-e0svzapwpz5)[\[2\]](#cite-id-tzqrj9fia0p).  
  
# Protocol  
  
The $BASED token combines a simplified version of the Ampleforth (Cryptocurrency) economic policy with YFI’s distribution mechanism. $BASED has a volatile supply targeting a stable price.  
  
These changes apply to all $BASED holders. If you own 1% of the supply, you will always own 1% of the supply, regardless of changes to the Market capitalization. As the demand for $BASED tokens increases, the number of $BASED tokens you own increases. If the demand decreases, the number of $BASED tokens you own decreases[\[3\]](#cite-id-rwnu14618hf)[\[4\]](#cite-id-v9h6pare48q).  
  
# Rebase function  
  
The BASED protocol’s rebase function queries a Uniswap v2 oracle to compare the price of $BASED to $sUSD. This function cannot execute more than once every 24 hours.  
  
If the price difference between $sUSD and $BASED is more than 5% in either direction, this triggers a rebase event. Above the 5% threshold, the supply expands. Below the 5% threshold, the supply contracts.  
  
When a rebase event is triggered, $BASED supply for all holders is adjusted smoothly over a ten-day period in an attempt to meet the targeted value of 1 $BASED to 1 $sUSD. For all accounts that own $BASED tokens, a rebasing can either result in an increase or decrease in their balance of $BASED.  
  
After a minimum of 24 hours, if the $BASED:$sUSD price is still not within the 5% target boundary, a rebase opportunity again becomes available.  
  
## Rebase example  
  
If the price of $BASED is $1.20 sUSD on Tuesday night and the price of $BASED is worth $1.15 in $sUSD on Wednesday night, then the rebase event can restart.  
  
# Yield Farming  
  
If a holder has 100 $BASED tokens worth $150 sUSD before a rebase event, their account balance will be 150 $BASED at the end of the rebase event. This allows them to take advantage of future price movements.  
  
This also works the other way around, which results in a lower balance. It also changes the entire dynamic behind DeFi by presenting new trading strategies.  
  
# Token distribution  
  
The $BASED token has two separate staking pools. Pool 0 yields the initial $BASED token supply. To join this pool, a holder needs to stake Curve $sUSDv2 LP tokens through the BASED application.  
  
Pool 1 follows similar logic as Pool 0, however, the halving period is 36 hours and the total token distribution is 75,000 $BASED over a longer period of time.  
  
To join this pool, a holder must stake UsUSDBASED-V2 LP tokens that can be acquired by depositing $BASED and $sUSD into the $BASED Uniswap pool.  
  
Rebases be will not be available until 97% of the total token supply is claimed. This period of time is a minimum of two weeks, but since this requires the community to claim their tokens through the BASED application, it could take up to a maximum of 4 weeks.  
  
Once these two pools are depleted and the tokens have been distributed among holders, no more $BASED tokens can be minted. The only way the supply of $BASED tokens will change is through rebasing events.  
  
# Codebase  
  
The source code for the $BASED token is unaudited.