Basis Cash PriceBAC

What is Basis Cash (BAC)?

Basis Cash (BAC) is a decentralized algorithmic stablecoin built on the Ethereum blockchain as an ERC-20 token. It is described as a censorship-resistant and fairly distributed implementation of the Basis Protocol, a monetary system designed to maintain a value close to 1 US Dollar. The protocol expands and contracts supply in a manner similar to how central banks trade fiscal debt to stabilize purchasing power, without relying on rebases or collateral. Basis Cash aims to serve as a medium of exchange, with its stability mechanism maintaining a peg to the MakerDAO Multi-Collateral Dai token. The project publicly launched on November 29, 2020, reviving the original vision of basis.io as a lightweight implementation on Ethereum. It is based on the stablecoin Basis, originally known as Basecoin. The circulating supply stands at approximately 54.57 million BAC, with a total supply of 54.58 million BAC. The project is categorized under DeFi, Stablecoin, and Yield Farming, with a CertiK rating of 3.3.

Key Specifications & Tokenomics

• Name: Basis Cash
• Symbol / Ticker: BAC
• Blockchain: Ethereum (ERC-20 token)
• Category Tags: DeFi, Stablecoin, Yield Farming
• Main Category: Algorithmic Stablecoins
• Official Website: https://basis.cash/
• Documentation: https://basis.cash/docs-sub/index/
• GitHub Repository: https://github.com/Basis-Cash/basiscash-protocol
• Explorer: etherscan.io
• Launch Date: November 29, 2020
• Circulating Supply: 54,575,145 BAC
• Total Supply: 54.57M BAC
• Max Supply: ∞
• Holders: 2.99K
• TVL: $205.65K
• CertiK Rating: 3.3

Who created Basis Cash?

The founders of the Basis Cash protocol are anonymous developers known as DeFi Morty and Rick Sanchez, a clear reference to the popular adult cartoon series Rick and Morty by Dan Harmon and Justin Roiland. During an AMA session in early January 2021, Morty stated that there are plans to expand the team further as there are technical positions to be filled concerning integrations and applications. The core developers stated they were early supporters and observers of Basis when it first launched, and believe it is one of the best ideas to have ever been put forward in crypto. While Bitcoin first got them interested in blockchain use cases, it was Basis that first truly inspired them. The project was launched anonymously, protected by the guise of characters from the popular SciFi series, intended to allow the project to avoid the censorship of regulators that scuttled the original Basis Protocol and to avoid founder glorification and single points of failure.

How does Basis Cash work?

Basis Cash operates through a three-token system. Basis Cash (BAC) is the stablecoin that the protocol aims to keep value-pegged to 1 US Dollar. Basis Bonds (BAB) are IOUs issued by the system to buy back Basis Cash when its price falls below $1. Bonds are sold at a meaningful discount to the price of BAC and redeemed at $1 when the price normalizes. Basis Shares (BAS) receives surplus seigniorage remaining after all bonds have been redeemed. When the price of BAC falls below $1, users can trade in BAC for BAB at the exchange rate of the BAC price, allowing bonds to always be sold at a discount during a contraction. When the price of BAC rises above $1, users can trade in 1 BAB for 1 BAC, allowing bonds to be redeemed at a premium. If there are no more bonds to be redeemed, more BAC is minted and placed in a pool for BAS holders to claim pro-rata in a 24-hour period. BAS holders must stake their shares in the Boardroom smart contract to receive the new BAC. The Treasury enables bond-to-cash redemptions, provided the oracle price of BAC is above 1 DAI and the Treasury contract has a positive balance of BAC.

What makes Basis Cash unique and valuable?

Basis Cash differs from the original Basis Project in several meaningful ways. Several core mechanisms of the Basis protocol have been simplified, especially around bond issuance and seigniorage distribution, allowing significant gains in user experience and contract simplicity while preserving the intended behavior of the original monetary policy design. The project was launched anonymously, protected by the guise of characters from the popular SciFi series Rick and Morty, allowing it to avoid the censorship of regulators that scuttled the original Basis Protocol. Both Basis Shares and Basis Cash have zero premine and no investors, meaning community members can earn the initial supply of both assets by helping to contribute to bootstrap liquidity and adoption of Basis Cash. Contrary to Basis Bonds of basis.io, bonds in Basis Cash do not have expiration dates. All holders are able to convert their bonds to Basis Cash tokens as long as the Treasury has a positive BAC balance. Basis Cash is not collateralized by an asset such as gold, dollars, or another cryptocurrency; Basis Shares and Basis Bonds are used to help keep Basis Cash at a price of $1.

What is Basis Cash used for?

Basis Cash tokens are designed to be used as a medium of exchange. The built-in stability mechanism expands and contracts their supply, maintaining their peg to the MakerDAO Multi-Collateral Dai token. Basis Bonds are minted and redeemed to incentivize changes in the Basis Cash supply. Bonds are always on sale to Basis Cash holders, although purchases are expected to be made at a price below 1 Basis Cash. At any given time, holders are able to exchange their bonds to Basis Cash tokens in the Basis Cash Treasury. Upon redemption, they are able to convert 1 Basis Bond to 1 Basis Cash, earning them a premium on their previous bond purchases. Basis Shares loosely represent the value of the Basis Cash network. Increased demand for Basis Cash results in new Basis Cash tokens to be minted and distributed to Basis Share holders, provided that the Treasury is sufficiently full. Holders of Basis Share tokens can claim a pro-rata share of Basis Cash tokens accumulated to the Boardroom contract. BAS is described as an ownership token which receives inflationary rewards from Basis Cash, and its value is directly linked to increasing adoption of BAC.

How Is the Basis Cash ecosystem developing?

The Basis Cash ecosystem includes Basis Cash (BAC) as the stablecoin pegged to 1 USD, Basis Bonds (BAB) used to contract supply, and Basis Shares (BAS) as the governance and reward token that receives inflationary rewards from Basis Cash. The Treasury enables bond-to-cash redemptions, while the Boardroom is a smart contract where BAS holders stake shares to claim seigniorage. Cash Pools are referenced as part of the protocol structure. Trading pairs include BAC/USDT on Gate.io Futures, BAC/DAI and BAC/SAN on Uniswap V2, and BAC/USDT on HitBTC. Conversion pairs include BAC to AUD, BRL, CAD, EUR, GBP, HKD, RUB, SGD, TWD, and KRW. Investors associated with the project include Andreessen Horowitz (a16z), Ventures Capital, Tier 1+, and tetranode. The protocol is described as a lightweight implementation of the Basis Protocol on Ethereum, with a Solidity implementation available on GitHub. The repository has 240 forks, 265 stars, and 335 commits. One Basis Cash adopts Binance Chain BSC because of the high transaction fees of Ethereum.

How to mine Basis Cash?

Basis Cash is not mined through traditional proof-of-work or proof-of-stake consensus. Instead, new BAC tokens are minted through the protocol's seigniorage mechanism. When the price of BAC exceeds $1 and all outstanding bonds have been redeemed, new BAC is minted and placed in a pool for Basis Share (BAS) holders to claim pro-rata over a 24-hour period. To receive the new BAC, BAS holders must stake their shares in the Boardroom smart contract. At the end of November 2020, 50,000 BAC was distributed over a five-day period, with 10,000 BAC per day, to users that deposited any of five stablecoins into its smart contract: DAI, yCRV, USDT, SUSD, and USDC. Depositors could not drop in more than 20,000 stablecoins from any one account. The daily reward was distributed pro-rata, and users could take their coins back out at any time. Both Basis Shares and Basis Cash have zero premine and no investors, allowing community members to earn the initial supply of both assets by contributing to bootstrap liquidity and adoption.

How to keep your Basis Cash Coin safe?

Storing Basis Cash (BAC) securely requires attention to best practices for ERC-20 tokens on Ethereum. Since BAC is an ERC-20 token, it can be held in compatible wallets that support Ethereum-based assets. Users should ensure they control their private keys and never share them with anyone. Hardware wallets provide an additional layer of security by keeping private keys offline. When interacting with smart contracts such as the Treasury or Boardroom, users should verify contract addresses through official sources and avoid clicking on suspicious links. The project's official website and GitHub repository are primary sources for protocol information. Because Basis Cash is not collateralized by an asset such as gold, dollars, or another cryptocurrency, and its value is maintained through algorithmic mechanisms involving Basis Shares and Basis Bonds, users should understand the protocol mechanics before participating. The original Basis project shut down in 2018 due to regulatory concerns that its Bond and Share tokens have security characteristics, and the project team opted for compliance, shut down operations, returned money to investors, and discontinued development. Basis Cash was launched anonymously to avoid similar regulatory censorship. Users should stay informed about the project's development and any regulatory developments that may affect algorithmic stablecoins.