Recapitulation of Base Protocol AMA event held at AMA LOVERS CLUB
Date: Monday, 19th October, 2020
Time: 19:00 UTC
The Base protocol team was represented by Nick and Dylan. They both judiciously shared with us detailed knowledge and information about the project.
1st Segment: INTRODUCTION
Q1 : Can you please introduce yourselves and your backgrounds, also if you have other team members, also introduce them
Ans : Sure! To keep this brief — we’re entrepreneurs, business nerds, programmers, and friends
I, Nick, have worked in tech startups since 2013, been involved in crypto since 2015, and began working on crypto projects directly in 2017. I also have a portfolio of Airbnbs which generate passive income so I’m able to focus on BASE full-time. I’m the guy who writes all the copy for our papers, articles, and website. I’m basically the storyteller for BASE.
Dylan Senter is a lifelong entrepreneur who has been active in crypto since 2013, spoken on multiple panels at different crypto conferences, and consulted over 50 clients across ecommerce, blockchain, and technology projects. He currently runs an ecommerce store with $1m in annual sales. Dylan is our business and marketing guru!
Chris has been programming professionally for almost 10 years and has been doing blockchain development since the Ethereum wave of 2017. He’s known for his YouTube channel Learn with Coffee (17k+ subscribers) where he teaches programming across different stacks through in-depth video tutorials. Chris is our head developer.
And Based McGee is our other core developer. All we’ll say about McGee is this; there is no higher level of Ethereum development expertise. He is a global elite. McGee likes to keep a low profile, so he’s opted to stay anonymous. But don’t worry — you can get to know him through his contributions on the GitHub and you can reach him through the Telegram and Discord.
Q2 : Can you please introduce the BASE PROTOCOL, what problems does it solve that existing solutions are not solving, what’s its competitive advantage at a time when REBASING is getting so popular
Ans : Sure, here’s a brief overview:
As cryptocurrency enthusiasts, we’re sometimes divided on which digital assets to buy — bullish on certain projects and bearish on others.
But we all agree on one thing, which is that the overall cryptocurrency industry will achieve long-term growth and future adoption.
The Base Protocol makes it possible to invest with this consensus. BASE allows traders to speculate on the entire industry with one token.
BASE is a token that represents all cryptocurrencies. By holding BASE, you have exposure to the performance of the whole cryptocurrency industry — all in one token.
This is achieved by pegging the price of BASE to the total market cap of all cryptocurrencies:
If crypto market cap is $400B, BASE is $0.40.
If crypto market cap is $700B, BASE is $0.70.
You might be wondering, how is this possible? How can you attach BASE price to crypto market cap?
This is achieved through the Base Protocol, which incorporates an elastic token supply. This means all BASE tokens across the world can be multiplied (expanded) or divided (contracted) to tune scarcity and influence price.
Using this protocol, we are able to create the world’s first tradeable cryptocurrency market index — one token that represents all tokens.
Q3 : Can you briefly describe the Top milestones you have achieved and your future target milestones with timelines. Also share your roadmap
Ans : At this stage BASE is still pre launch, but we do have our smart contract & rebase code finished and currently being audited. We also have fully integrated a Chainlink oracle into our protocol, that tracks the total crypto marketcap from a variety of different marketcap aggregator sites.
Additionally, we have partnered with DuckDao as a strategic partner. This has allowed us to work with their large network in the crypto space, and grow our community dramatically.
We have lots of announcements coming pre-launch/post-launch, and have our future 1 year roadmap posted.
You can find the roadmap here: https://t.me/amaloversclub/29594
2nd Segment: TWITTER QUESTIONS
Q1 : What is the Basis of the @BaseProtocol ‘s PRICE EQUILIBRIUM? and what is the adjustments made if ever the equilibrium price will be distrupted?
Ans : BASE is pegged to the total market cap of all cryptocurrencies at a rate of 1 : 1 trillion.
So if crypto market cap is $350B
BASE target price is $0.35.
If crypto market cap is $700B.
BASE target price is $0.70.
Here’s an example of when an “adjustment” is made:
Say BASE target price is $0.50, because crypto market cap is $500B.
BUT BASE is trading at $1.00 on the market.
The protocol will double the total supply of tokens across everyone’s balances, to drive the price down to its peg.
The same happens in vice versa if the price is too low — tokens are destroyed, driving up scarcity, and in effect, price.
Q2 : The idea of creating a token pegged to the market cap of all cryptocurrencies is incredibly amazing. How did you come about it? Do you have any plan of making a video to help potential investors understand it more better?
Ans : So, I’ve been in the space since 2013, I’ve seen all the ups and downs of crypto. I notices the markets recovering following the crash this year, and started really paying attention to the industry at large. I noticed rebase tokens becoming more popular, and learned about how they are able to peg to a dynamic price, while maintaining stability.
I immediately thought about creating a token that represented the entire industry, and from there we formed the team and made it happen!
As for a video, we are doing a Q&A official team video on our Youtube this Friday. Stay tuned for the announcement on that on our twitter: twitter.com/baseprotocol
Q3 : What happens to the vested BASE tokens, will they be also affected by rebases? Would we get more/less token as we actually bought?
Ans : Thanks for this question! We get this a lot, so I’ll be clear:
When a rebase happens, the supply changes everywhere.
Your wallet balance, the amount you’re staking in Uniswap, the amount you’re staking in the Cascade, all vested tokens, everything.
Also, yes, you may get more or less token than you originally bought in sale.
Q4 : Could you tell me more about the Base’s futuristic cascade rewards program? What are the requirements to be rewarded? How it different from the other liquidity rewards program currently in the market ? Do you plan to list the token on lending/borrowing platforms ?
Ans : You’ll be able to stake BASE straight through Uniswap, and get bonus rewards through the BASE Cascade. As long as you’re staking your Uniswap LP tokens in the BASE Cascade, you’ll get a share of the Cascade rewards pool.
The BASE Cascade rewards pool is perpetually funded by the network at rebases. These funding issuances are called SPLASHES.
When there is a supply expansion, an extra 8% of that expansion is minted — these tokens are splashed
into the Cascade rewards pool.
For example, if there is a 10% expansion, 0.8% extra is minted and goes to the Cascade.
When there is a supply contraction, 10% of the contraction doesn’t get destroyed — these tokens are
splashed into the Cascade rewards pool.
For example, if there is a 10% contraction, 1% is exempted and goes to the Cascade.
This is how the Cascade sustains itself through the course of adoption. It encourages staking during “bullish periods” of supply expansion and further encourages staking during “bearish periods” of supply contractio
Q5 : BASE’s target price is one trillionth the total market capitalization of all crypto currencies, this only happens when there’s expansion in supply, what unique steps have you taken to expand #BaseProtocol that will stand the test of time?
Ans : Great question.
The first major point is that BASE is a governance token which allows holders to vote on rebasing parameters. For example, the frequency of rebases, the period of time which expansion/contraction adjustments are made over, etc. As time goes by, these parameters should trend toward a more long-term stable peg to market cap. This is very important for the longevity of the project.
Furthermore, as we’ve discussed in the answer above, we’ve implemented the BASE Cascade. This is a lot like AMPL’s Geyser, a liquidity staking rewards program built on TOP of the normal liquidity staking rewards on Uniswap.
3rd Segment: LIVE QUESTIONS
Q1 : Most crypto projects are usually very complex and niche in utility. Is this ascertion the same for BASE? Who can use BASE?
Ans : The beauty of BASE is in it’s simplicity! BASE is simply a token that follows the crypto market cap.
This is something that everyone can use, and actually something that we think can bring a ton of new users into crypto. Our goal for the general public is that we are the access point into the crypto industry
Q2 : Lately Defi has become a trending topic and has become a new breakthrough in the crypto world, there are many projects with their own uniqueness. What about Base Protocol? What is the uniqueness of Base Protocol that is different from the others?
Ans : You’re absolutely right that DeFi has become a hot topic in crypto recently! However, many of these projects are just “money games.” Many are not creating any actual value or use case other than a zero-sum game where traders bet against each other for profits.
BASE is not one of these projects. BASE creates an incredibly valuable use case which allows holders to speculate on the entire crypto industry with one token. This will be very, very useful for current traders, institutional investors, and novices interested in investing trading crypto who don’t know which assets to buy!
Q3 : What are the exchanges that you plan to list the currency in the future
Ans : We’ll be launching on Uniswap, but also have plans to hit all other DEXs and whichever CEXs we can as well!
Q4 : On your website there writes in precents where will supply go,but can you tell total supply of $BASE ? Do you have any plans for future partnerships with other platforms?
Ans : Total supply is not really a thing when it comes to rebase tokens. Due to the rebasing protocols, supply will be in flux on a daily basis.
Q5 : About your $BASE token, how is it possible to obtain it? Is it listed on Uniswap or on any exchange? if not, are you doing any ICO or pre-sale? What are its uses and where can we buy it?
Ans : We are currently in presale, sign up here: baseprotocol.org/presale
Q6 : Many users need loan systems to cover some leverage, can BASE also be used as a loan instrument to cover leveraged crypto operations? How do Base Protocol loan systems work?
Ans : BASE can be used as a collateral asset to hedge on leveraged crypto trading. Say a trader borrows 100 BASE to buy an altcoin, and that altcoin plummets alongside a bearish trend in crypto markets. When the trader pays their 100 BASE back to the lender, he notices the value of that BASE also dropped — correspondent to the crypto market. This means that when he pays the loan back, he only absorbs the loss he took that was in excess of the overall loss in the market. In this way, BASE can be used as a strategic hedging instrument for crypto-focused portfolios trading on leverage.
Q7 : Why is it better to invest in “all” cryptocurrencies and not only in a small group? Why is Base a better investment opportunity?
Ans : Great question!
BASE removes all the guesswork. Sure, there are some traders who like to invest in their own tailored portfolios. But there are also individuals who just want to take out the guesswork, buy a diversified asset, and take their hands off the wheel.
It’s the same in stocks trading. There are traders who trade their own portfolios, and traders who buy things like the S&P500 or NASDAQ. These index tools are very, very valuable. Even for the traders who tailor their own baskets! They often use these indexes to hedge their risk.
This is why BASE is valuable.
Q8 : How being pegged to the total market cap 1: 1 trillion benefits the project? How do you plan to manage the price of your token with respect to market volatility? Why is this beneficial for your users?
Ans : This answer I’m about to give generally answers everything in this question, but it also goes into depth on another common questions we get:
- The Formative Period vs. the Final State -
BASE will act as a crypto index once it has achieved a stable price peg to the crypto market cap.
However, this price peg will NOT be stable in the beginning. That is because new adoption for BASE will cause bullish disruption on the price peg.
This is the “Formative Period” dynamic. In this formative period, as new users buy and adopt BASE, the growth rate for BASE will probably exceed the growth rate of crypto market cap. This means that for early adopters, BASE is more speculative than it is stable. During the formative period, holders are speculating more on BASE adoption than they are on the crypto market peg.
However, once BASE reaches an adequate threshold of visibility and adoption slows down, we can expect its market price to stabilize on the peg. Once this is achieved, holders will be able to use BASE to speculate on crypto market cap, and not so much on BASE itself. This is the “Final State.”
In the formative period, buying BASE is a bet on future adoption of BASE.
In the final state, buying BASE is a bet on future adoption of the crypto industry.
Q9 : Is it a good choice for BASE to peg the total market value of all cryptocurrencies instead of pegging at $ 1? You know that there are many projects that are fixed at $ 1. Can we call this decision the best choice for BASE?
Ans : The $1 peg is not a very interesting one for us.
The dollar already exists, and there are several $1 stable coins competing for market share today.
However, the use case for pegging to total crypto market is VERY interesting. Because there is no asset in existence today that performs the function to speculate on total crypto industry. This has literally never been done before. BASE is the first of its kind.
Before going, please do good to share every useful links to project and also do you have any Final Words. Also share about the Presale and how we can get in
Ans : Thanks
Make sure to join the BASE telegram: t.me/baseprotocol
Also, if you’re interested in getting presale access, make sure to fill out an application on our site: baseprotocol.org/presale
Follow Base Protocol on the following platforms:
… Website: http://baseprotocol.org
… Telegram Chat: https://t.me/baseprotocol
… Twitter: https://twitter.com/baseprotocol
… Github: https://github.com/Base-Protocol
… Discord: https://discord.gg/rsPCcYV
FOLLOW AMA LOVERS CLUB ON:
Telegram Group: https://t.me/amaloversclub
Telegram Channel: https://t.me/amaloversclub_channel