Algorithmic stablecoin project Basis Cash has designed two arable tokens, one is the stable currency Basis Cash and the other is the ownership token Basis Share. Learn how to mine.
Written by: DeFiMorty
Translation: Lu Jiangfei
Different from other DeFi protocols, the algorithmic stable currency project Basis Cash has launched two arable tokens. One is Basis Cash, which is a stable currency with a value anchored at $1; the other is Basis Share, which is an ownership token. The currency can not only increase in value through the increase in Basis Cash usage, but also profit through the continuous issuance of Basis Cash (inflation).
This guide will outline the distribution process and mechanism of Basis Cash step by step:
How does the Basis Cash mechanism work?
In fact, the Basis Cash agreement 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 be anchored to the price of $1.
We will describe the working methods of Basis Share and Basis Bond in detail below, and design two actual scenarios:
- Basis Cash price is less than $1
- Basis Cash price is higher than $1
When the Basis Cash price is less than $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 redeem their tokens in the future. Can get a certain profit.
Under certain conditions, each Basis Bond will promise to let the holder exchange Basis Cash at a 1:1 ratio at some point in the future. Whenever a user purchases Basis Cash, the Basis Bond will be destroyed to ensure that the supply of Basis Cash in circulation is reduced. Basis Bond has no interest expenses, and no expiration or expiration time. In fact, as long as the price of Basis Cash rises to more than $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 only redeem the purchased Basis Bond at a ratio of 1:1 when the Basis Cash price is higher than $1. This mechanism can ensure that Basis Bond holders reduce redemption losses and prevent Cause an unnecessary increase in supply.
When the Basis Cash price is higher than $1
When the Basis Cash price is higher than $1, the contract will allow the Bond redeemer to directly redeem the Basis Bond. If the transaction price of Basis Cash is higher than $1 after the Basis Bond is redeemed, the demand for Basis Cash will increase at this time, and then new Basis Cash tokens need to be minted, and these tokens will also be distributed to Basis Share holders.
For example, let us assume that the Basis Cash price is higher than $1 after the Basis Bond is redeemed. In this case, the Treasury Contract will mint new Basis Cash tokens, but at the same time, seigniorage will also be generated. , This seigniorage will be allocated to a so-called “Boardroom” (Boardroom), in which users can pledge Basis Shares and earn seigniorage daily based on the Basis Cash price.
Overview of the token distribution plan: Zero supply minting / distribution purely through the community
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”, and 10,000 will be distributed daily . 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 provide liquidity to those users who provide liquidity in the Basis Cash (BAC)-DAI pool of Uniswap v2, where users can deposit liquidity provider (LP) tokens into the distribution 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 at a rate of 75%.
After the liquidity providers in the Basis Cash(BAC)-DAI pool of Uniswap v2 will get more Basis Shares, because in the following year (365 days), a total of 250,000 Basis Shares will be allocated, every day Allocate in equal amounts. .
How to get distribution rewards?
Step 1: Earn the allocated Basis Cash tokens
1. Go to the Basis Cash App page. First, please visit the website , which will display the basic field page user interface.
2. Choose a stable coin pool (DAI, SUSD, USDC, USDT, yCRV)
Click “Pool”, and then you only need to provide a connection to the Metamask browser extension to unlock the wallet.
After choosing a stable currency, you can make a deposit. The maximum deposit limit of each account in each liquidity pool is 20,000 tokens, and each liquidity pool will allocate 10,000 Basis Cash within 5 days, aiming 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 Basis Share
When you come to the second step, it means that you are now 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 to provide price liquidity to Uniswap and earn Basis Share rewards.
“Basis Share Pool 1”
The figure below is an example of “Basis Share Pool 1”:
First, users may need to earn Basis Share “from scratch”, so they must provide liquidity to Uniswap V2’s DAI <> Basis Cash pool. As shown in the figure 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, and 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, 6250 Basis Shares will be deposited first, and then the deposit will be sequentially reduced at a rate of 75% every 30 days. The token distribution trend is shown in the figure below:
“Basis Share Pool 2”
The figure below is an example of “Basis Share Pool 2”:
“Basis Share Pool 2” will allocate 250,000 Basis Shares. If you provide liquidity to the Basis Share <> DAI pool on Uniswap v2, then you have a chance to get these tokens. Like “Basis Share Pool 1”, there will be a display link at the bottom of the page. Click to redirect to Uniswap’s liquidity provider page, so that you can easily participate and provide liquidity.
After providing liquidity on Uniswap, you can return to the “Basis Share Pool 2” page, and you will be allowed to deposit LP tokens in BAS_DAI-UNI-LP v2. “Basis Share Pool 2” will allocate a total of 250,000 Basis Shares. According to the agreement, an average of 684.9315 Basis Shares will be distributed every day. The token distribution trend is shown in the figure below:
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