AMA with Base Protocol

Nebo: Kindly introduce yourselves to the community

Dylan: I will intro the entire team below

Nick has worked in tech startups since 2013, been involved in crypto since 2015, and began working on crypto projects directly in 2017. Nick has also have a portfolio of Airbnbs which generate passive income so he’s able to focus on BASE full-time. He’s the guy who writes all the copy for our papers, articles, and website. He’s 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.

Nebo: Impressive team!

Could you tell us in your own words, what is Base Protocol?

Dylan: 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.

By pegging BASE price to the total market cap of all cryptocurrencies, BASE acts as an index like the S&P 500 or NASDAQ — but for crypto.

There is currently no product on the market that does this.

BASE will be useful for institutional investors and traders to diversify and hedge their crypto portfolios. BASE will also help new and existing retail investors to take out the guesswork and get exposed to the growth of all current and future digital assets entering the market.

In the same way that Bitcoin is the household name of cryptocurrencies, the Base Protocol aims to become the household name for general cryptocurrency investing. BASE’s vision is to become the primary channel of investment for new/existing cryptocurrency traders and institutional investors.

Nebo: Interesting, I’m surprised no one thought of this before.

Dylan: We’ve heard that quite a bit :)

Nebo: Can you briefly explain how the tech behind the protocol works? (rebase mechanism)

Dylan: Ok, so let me explain this in two steps:
First, I’ll introduce the peg, and then how it works.
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.

With the Base Protocol, we are able to create the world’s first tradeable cryptocurrency market index — one token that represents all tokens.
You might be wondering, how is this possible? How can you attach BASE price to crypto market cap?

This is achieved through 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. Here’s an example of how that works:
Let’s say the total market cap for crypto is $100B
So BASE target price is $0.10

t1 : Starting Equilibrium
John has 1 BASE worth $0.10.

GREAT. We are pegged. Awesome.

t2 : BASE Price Increases
John has 1 BASE worth $0.20.

Wait a minute, the BASE peg was thrown off. This isn’t right. We need to do something.

t3 : Supply Expansion
John now has 2 BASE each worth $0.10.

So Boom. The protocol doubles the total supply of BASE, which influences the price to come back down to the peg. John’s total $ balance after the price jump remains unaffected. But he still profits — but through his supply bonus, rather than just the price of the token.
These supply expansions and contractions are how the peg is held stable. Each expansion/contraction is called a Rebase.

ELI5:
BASE price above peg price = Supply increase

BASE price below peg price = Supply decrease

Nebo: I see. Are there any important dates or milestones we should be looking forward to?

Dylan: I will refer everyone to check out our roadmap for dates and future plans.

Nebo: Great. Why do you think institutional investors will be interested in such asset considering the crypto industry is high-risk?

Dylan: Although crypto is an inherently “high-risk” industry to invest in, it is also the highest performing industry in the past decade. This is why so many people, including institutional investors are so interested in the crypto space. Before BASE, it has been extremely difficult to gain exposure to crypto, other than buying Bitcoin. Our goal is for people to simply invest in crypto as a whole, like you can do with so many other traditional industries

Nebo: I couldn’t agree more!

Okay, we will let the community ask the next set of questions.

Member 1: I was reading on your website about one of the Base Protocol features and I am curious, how does Base Protocol work when used as a “safe haven” between encryption transactions and what is this about?

Dylan: Here is a breakdown of our planned Use cases:

Crypto Index
-The Base Protocol acts as a one-stop trading instrument which allows holders to speculate on the entire crypto industry simultaneously, rather than just one token or a select portfolio of multiple. This should be valuable for outsiders interested in crypto investing who don’t know which assets they “should” buy. It will also be useful for institutional investors seeking to diversify crypto exposure to the entire industry, and general crypto traders looking to hedge or diversify their investments.

Collateral Asset
-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.

Safe Haven
- BASE can be used as a safe haven position between crypto transactions. Typically, one might trade into a “blue chip” crypto to reduce risk exposure. Trading into BASE mitigates the inherent risk of holding one coin, while absorbing the potential gains of several others. So far, the most popular safe haven crypto asset is Bitcoin, as it generally leads industry direction and is historically the least volatile. The ability to “hold” the entire crypto market should present a useful trading alternative.
Price Basis
- BASE can be useful as a price reference for any cryptocurrency. If a trader is speculating on an altcoin (x), he will often track price in terms of x/BTC rather than x/USD. This price reference illustrates how the altcoin performs relative to BTC rather than USD, which is the more important data for many crypto traders. If the trader instead uses x/BASE as their price reference, it would illustrate how x performs relative to the overall crypto market, rather than just BTC. The x/BASE price reference should present a valuable alternative to the popular x/BTC price reference.

Member 2: One use case for the BASE Protocol is the Crypto Index. What cryptocurrencies are included in this index and how many are there? Can they change and how does it work?

Dylan: We are including ALL cryptocurrencies that exist in our marketcap calculation. Essentially we gather marketcap data from 11 different marketcap API. We secure the data through Chainlink oracle.

Member 3: Let’s talk about transparency. Recently, numerous Crypto project exit scams have emerged. So, my question is How we can ensure us that YOUR PROJECT will never scam in any way?

Could you tell me about base cascade mechanism??

Dylan: Please take a look at the tokenomics on our wesbite. We are locking up all tokens, team, company, advisory, etc… Further, our token contract will be fully audited by launch

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 contraction

Member 4: There we see many projects that claims they are fully Decentralized. But they done their work in a Centralized way. How can we sure that $BASE is fully Decentralized? Can you please tell us what’s $BASE working method?

Dylan: We operate through a decentralized Chainlink Node, and will have community governance help determine the rebasing parameters!

Member 5: How to buy BASE?

Dylan: You can check out baseprotocol.org/presale

Yes, I think we answered most different questions at this point!

We enjoyed the AMA on our side, is there any more sections of the AMA?

Thank you for having us, and we will be happy to come and do this again in the future.

Make sure to follow us on: t.me/baseprotcol

Check out the presale at: baseprotocol.org/presale

I think that’s a wrap! Thanks everyone for participating.

🏆 Make sure to follow Base Protocol on Telegram and Twitter:
https://t.me/baseprotocol
https://twitter.com/baseprotocol

👉 We will now check and verify who the winners are.
They will be posted here.

ANNOUNCEMENT
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