Compound started a chain reaction with its COMP token for yield farming; YFI, YAMs (which kept everyone awake during its 24 hour rise and fall), and now BASED.
At its core, BASED is an elastic supply protocol similar to Ampleforth. Every 24 hours the protocol adjusts the supply to target a token price 1 sUSD, or $1. If the price of BASED changes more than 5% in either direction, a rebase is triggered, although these rebases won’t begin until 97% of the total supply is distributed (2-4 weeks). The project is attracting buzz given its retro, neon light esque persona driven by memes, telegram sticker packs, and the wider yield farming craze. The project even has a techy song playing on the bottom of their site.
- BASED is targeting a YFI type fair distribution, with no premise or VCs and where users have to farm to earn. To farm, users must deposit stablecoins to the curve sUSD pool (DAI, USDC, USDT, or sUSD), take their resulting LP shares and stake these in the BASED UI. Stakes are capped at a max of $12k per user in Pool 0, in an effort to ensure a broader, more equitable distribution compared to YFI.
- BASED’s private keys have been burned, so the contracts cannot be changed for be