AMA Crypto Family Trading x Basis Cash
Please join Group @CryptoFamilyVN & @basiscash
Airdrop $200 for the best questions in AMA .
CF: First, please make a brief introduction of yourself and Basis Cash project.
BasicCash: Hey guys! I’m yyctrader and I lead marketing for Basis Cash, @mrdaocrypto is our Community Manager. By now most DeFi users are aware of algorithmic stablecoins, but when we launched in November 2020, we were the first to design and use the 3-token model for seigniorage shares
Basis Cash Protocol Basics
3 tokens: Basis Cash (BAC), Basis Shares (BAS), Basis Bonds (BAB)
BAS supply is limited to 1M tokens. BAC and BAB have no caps on supply.
BAC is designed to be pegged to 1 DAI ($1) and there is a daily stabilization mechanism.
When BAC is trading above 1 DAI:
– BAC supply is increased by a factor of the current price of BAC
– Example: If BAC = $1..2, supply will increase by 2%
– Newly minted BAC is sent to the Boardroom as rewards to BAS stakers and Bondroom redemptions
– The resulting selling pressure is expected to bring BAC down to 1 DAI
When BAC is trading below 1 DAI:
– Basis Bonds (BAB) are available at a discount, to be purchased with BAC
– BAB does not expire and can be exchanged for BAC at any time, as long as the Treasury has funds available.
– BAB can be redeemed at a premium when BAC is back on-peg
– The resulting buying pressure is expected to bring BAC back up to 1 DAI
CF:2. Could you please some outstanding features that make Basis Cash competitive with other slgorithmic Stablecoins?
BasicCash:In Basis V2, dynamic emissions for liquidity providers that change based on the price of BAC is a unique feature that nobody has done before. Also, we have integrated our own BAC vault, which will be upgraded very soon with a new strategy to arbitrage around the $1 peg. I’m not supposed to share this yet, but Basis Lending is also in the final testing phase. And we are testing the locker too, it will help users get more reward when they lock their BAS and BAB.
CF: 3. Are there any hot news or big events of Basis Cash to achieve mass adoption locally and globally?
BasicCash: Like I mentioned above, the new features like BAS/BAB locker, Basis Lending and upcoming Basis Swap (our own dynamic AMM). All of these are in the final phase and we expect much more action once they are live. Regarding outreach and adoption, we are doing AMAs with various large crypto communities such as yourselves. Our community is strong and supports the project, in fact we recently raised $500K from a community investor for continued quick development
-Anything to add @mrdaocrypto ?
– Your answer is great ser.
CF:Thanks for all the above useful information. I believe all the members here would love to hear more about the project, and they have many questions submitted on Twitter today. I have chosen carefully some good questions for you. Here is the first one
1. Why did you choose to build an ecosystem with multiple tokens instead of designing a single currency that includes all-in-one features? What are the benefits for token holders and how could you guarantee the highest return for long-term investors? @Maley071627334
BasicCash: The aim of using multiple tokens is to separate the volatility caused by supply and demand changes away from BAC, which is intended to be the stablecoin. The model is based on the original basis.io, which raised over $100M in a 2017 ICO but was forced to shut down by regulators. Currently, we faced issues dealing with the extended contraction below peg. Development was delayed and dynamic emissions were not implemented quickly enough. This is the main reason for BAC and BAS trading so low at the moment. While we cannot speculate on price, the project is an an extremely low market cap right now, with a lot of potential to grow with all the new planned initiatives.
CF: 2. What are the toughest challenges are you meeting right now? And the ultimate vision that your project is trying to achieve in the current market? As I know, regulation is very strict with start-up Blockchain projects. What do you plan to gain trust and loyalty from users? @BinaPony
BasicCash: The bearish sentiment in markets overall isn’t helping us for sure, also big failures like TITAN scare investors away from algo stables. We are continuing to build and will keep developing and improving the Basis Cash protocol. Our long term vision is to be a true decentralized alternative to USDT and USDC. As you all know, centralized stablecoins can be blocked or frozen by the authorities as they can put pressure on the companies backing them. DeFi is all about open and permissionless platforms, its time we had our own stablecoin as well, without depending on any single point of failure
CF: 3. Which tools does #BasicCash guarantee the mechanism against lack of liquidity and bond death spirals? I want to buy bonds but wondering what are the benefits and risks for bondholders. Please tell me the minimum and maximum amount of bonds an investor can buy. @duetdaily
BasicCash: So like i was explaining earlier, the V1 mechanism was not strong enough to support the peg on its own, so bonds were ineffective.However, with the new incentives and lockers etc, we plan to address the ‘death spiral’ problem. There is no minimum on bonds, they can be minted using BAC on our website or bought on Sushiswap, though liquidity is low. We have a bond cap in place to prevent abuse of the system. Currently, I believe it is around 500K, it adjusts based on the circulating supply
CF:4. As I know Basis Cash is the fairly-launched decentralized Algorithmic Stablecoin inspired by #basisprotocol but the price stabilization is also a difficult problem for a algorithmic stable-coin . So what are the BasisCash’s feasible solutions when $BAC go higher or lowerthan 1$? @Jaki73364096
BasicCash: I think we covered this already in the introduction and the new developments I discussed ,@mrdaocrypto could you please share the latest medium post.
CF: 5. High ETH commissions and the slowness of this chain are known to be a huge problem that will not be fixed anytime soon due to the ETH 2.0 delays. So why did you decide to develop Basis Cash on ETH? Do you have plans to develop a cross-chain to function in BSC? @Yahiko51901678
BasicCash: We started on Ethereum as it remains the primary chain for DeFi. We actually launched on BSC in partnership with Value Defi and started seeing a lot of activity.Unfortunately, they got hacked and over 1M BAC was stolen and dumped
CF: That’s the end of Part 2, I believe all of the members here have gathered enough useful information, also they have many questions to raise for you today. In this free-asking part, all members will have 2 minutes to make questions for @yyctrader and @mrdaocrypto today. Feel free to ask and they will explain gradually in their answers.
(after 2 minutes)…
1.Kiếm token thì dễ nhưng làm cho token này có giá trị có thực sự khó không? Vì vậy, nỗ lực của bạn là gì để làm cho mã thông báo của bạn có giá trị hơn và kế hoạch của bạn để duy trì giá và nguồn cung mã thông báo là gì?
BasicCash: We have a limited circulating supply of BAS and we have reduced inflation further in BIP16.
We plan to increase value accrual for BAS through profits from Basis Lending and Basis Swap in addition to expansion rewards when BAC regains peg. Ecosystem partnerships have been my main focus, since only real adoption of BAC as a stablecoin can ensure long-term success.You can check out our previous partnerships here:
This is a bit dated, we’ll be putting a new one out shortly to coincide with our launch of BAS/BAB lockers and basis lending.
2.NFT is getting more popular now a days. It looks NFT has bright future. So do you guies have any plan to include NFT to your project?
We certainly do! We were planning to launch in March but delayed due to market
.3.Do the token holders have right to participate in the governance of the project??? On what kind of decisions can they vote on about the project??”
BasicCash:BAS is the governance token of the Basis Cash ecosystem and all changes to the protocol are made only after voting by holders.As a fair launch project, we have always aimed to operate as a DAO, and BAS boardroom stakers are eligible to vote on proposals.You can see all the governance proposals here: https://snapshot.org/#/basiscash.eth
4.Lately, most projects have pulled the carpet and got rid of scams.Why should we trust your project while it’s still going?
BasicCash : We were the first seigniorage stablecoin on ethereum and the project has been running for 7 months with no issues.V1 was audited by Certik, and we are working with Peckshield for V2.In addition, all contracts are controlled by a 3/5 community multisig that were elected by holders.I am a member along with our led dev and ops manager + 2 community members who are large BAS holders.Users can be assured that there is no risk of a rug pull at Basis Cash.
5.About the Staking. Is there any lock period for the token? And what about non-stakers? Dot hey need to pay fees to use your services?
BasicCash: Currently there is no locking mechanism. However, BAS and BAB lockers are being released in the coming week.Users can get bonus rewards for locking their tokens.Details can be found here: https://snapshot.org/#/basiscash.eth/proposal/Qmaug18uu2d525KpFUgY3A7UgEPMcS2AsZxdZm5sGLtcrn
CF: Thank you so much for taking your time to join our AMA today, as well as thanks for hundreds of good questions from our community. Seems like there’re many things to exchange, but I’m afraid the time is up now @yyctrader @mrdaocrypto .For all of the questions that have not been answered yet, guys feel free to search for more information on the links:
– Discord link: https://discord.gg/qtB83nVYFX
– Telegram: https://t.me/basiscash
– Twitter: https://twitter.com/BasisCash
– Medium: https://medium.com/basis-cash