Based.Money (Ticker: $BASED), is a DeFi (Decentralized Finance) protocol launched on August 12, 2020^[1][2].

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][4].

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.