Basis Cash Ecosystem Roadmap
The Basis Cash ecosystem is gaining momentum as new apps and services within the DeFi ecosystem are integrating their DeFi applications with Basis Cash.
Below we will discuss the Basis ecosystem partners and integrations, stablecoin market growth, and opportunities for new apps and services integrating DeFi apps with Basis Cash.
Stablecoin Market Share Growth
As of February 2021, the total stablecoin market is nearing $60 billion, with the majority of value being composed of Centralized IOU stablecoins such as USDT, USDC, and GUSD which are backed with fiat money or precious metals, such as the U.S. Dollar or other sovereign currencies. Centralized IOU stablecoins are a representation of another asset and can be redeemed 1:1 for the underlying asset. These types of stablecoins require trusting a third party to take custody of the underlying asset and thus are not fully decentralized.
A second category of stablecoins called collateral backed on-chain stablecoins, such as Maker DAI, consist of overcollateralized on chain assets which back the stablecoin and maintain the price peg. While these types of stablecoins are more decentralized compared to Centralized IOU stablecoins, they require collateral lockup to cover margin calls, and as a result there is a liquidation risk if the collateral asset declines in value.
Basis Cash utilizes an “algorithmic central bank” approach to manage the supply of tokens. The algorithm balances stablecoin supply to demand, ensuring that the token price remains relatively stable. Basis cash is a fairly launched project, with decentralized community governance and transparent operational funding through Community Development Funds (CDF) proposals.
The number of active BAC holders has grown over the past 3 months since launching, with over 2,517 current BAC holders as of Feb 27, 2021. Basis Cash and other algorithmic stablecoins currently make up a relatively small percentage of the total stablecoin market. As refinements to the protocol continue to be made, and it begins to have a track record of maintaining a price peg, more people will begin to adopt Basis Cash due to the benefits of an open, permissionless system which doesn’t rely on third party custody, or collateralization.
Why are decentralized Seignorage stable coins important?
Seignorage stablecoin projects like Basis Cash are important due to the regulatory risks of centralized stablecoins like GUSD, or USDC and USDT. In part due to recent interest by regulators who are aiming to regulate and restrict their usage with new regulations like the STABLE Act. Additionally, Basis Cash is a fully decentralized protocol which doesn’t rely on third party custodians or collateral, therefore it is immune from regulations, third party custodial risk, and censorship.
Ways to earn yield within the Basis Cash ecosystem
Users can stake their Basis Cash tokens and earn APY using the following platforms and pools:
Users can add liquidity to the Uniswap liquidity pool for BASv2 and DAI. After adding liquidity to the pool, users can then deposit their UNI LP tokens in Pickle’s vault. The Pickle vault then takes those BASv2 rewards and sells them on the market, and compounds the rewards daily by selling the BASv2 and using the profits to purchase more BASv2/DAI.
2. pUNI BASv2/DAI Basis App Pool: 195% APY
Similar to the Pickle farm, BASv2 staked directly on the Basis Cash app website does not compound instead BASv2 reward accrue to the user and can be withdrawn at any time.
3. BASv2 and BAB Staking in Basis App Boardroom: TBD % APY
Users can also earn return on both BAB, and also BASv2 by naked staking each token in the Basis Cash App boardroom. The rewards from this staking accrues over time and can be withdrawn at anytime. BASv2 staking is currently active, and BAB staking will be activated around the first week of March.
4. pUNI BAC/DAI Pickle Farm: 580% APY
Users can add liquidity to the Uniswap liquidity pool for BASv2 and DAI. After adding liquidity to the pool, users can then deposit their UNI LP tokens in Pickle’s vault. The Pickle vault then takes those BASv2 rewards and sells them on the market, and compounds the rewards daily by selling the BASv2 and using the profits to purchase more BAC/DAI LP tokens.
5. BAC / BAB Sushi Pool: 200% APY + Onsen Sushi Rewards
Users can add BAC and BAB liquidity to the Sushiswap and earn a percentage of the transaction fees. Users can then stake the LP tokens in the Onsen section in order to earn Sushi rewards. The pool currently has10 allocation points and earns .350 Sushi/day per $1,000 staked.
6. BAC / SAN Liquidity Pool: Santiment Analytics
Users can provide liquidity to BAC/SAN to get access to Sanbase Pro.
BAC/DAI pool is currently live. In the future incentivization may be added to this pool pending governance approval.
8. BAC/3crv StableSwap pool Curve Pool
This pool allows users to stake and swap using the CRV 3CRV pool. Migration of BASv2 rewards from the Uniswap pool to this pool will be the last phase of the Basis Cash V2 plan, and will occur after implementing revised BASv2 incentives.
Deri Protocol is a decentralized protocol to exchange risk exposures. Users can deposit BAC as collateral and trade leveraged BTC. In addition, BAC LPs can earn 82% APY with no risk of impermanent loss.
The bridge allows users to lock their BAC in a smart contract on Ethereum and mint secretETH or secretERC20, which are wrapped tokens with privacy on the Secret Network based on SNIP-20 standard. By staking, users can then earn sSCRT at 13% APY.
In progress ecosystem integrations
- Binance Smart Chain: There are currently discussions ongoing for creating a bridge integration between Binance Smart Chain and Basis Cash. Expected to be completed first week of March.
- Pancake.Finance: There will be Pancake swap integration after the Binance Smart Chain bridge is completed. The expected date of this integration is currently TBD.
- Cream.Finance BAC/DAI has been approved as a collateral asset on CREAM Finance. This integration is currently awaiting implementation by the CREAM team. Once completed this would allow users of the CREAM platform to borrow and lend in BAC and earn interest. Stablecoin lending and borrowing rates on these platforms currently is around 10%-20%. As Basis Cash is a riskier asset, the yield and return will likely be greater. Awaiting implementation by CREAM finance team, ETA unknown.
Opportunities for DeFi apps and protocols to integrate Basis Cash
- Cross Chain blockchain support with AMM swap applications. Binance Smart Chain and Pancake Swap are currently in progress.
- In game currency for blockchain based games.
- Exchange trading pairs with Fiat Currency.
- BAC Base pair’s on Dex’s and Cex’s.
- Margin and leverage BAC trading pairs.
- Trading pairs on prediction markets.
- Native Front End blockchain interfaces such as Zapper, Zerion, Instadapp and others.
- Leveraged yield farming protocols.
- Debt collateralization and fixed interest lending protocols.
- Decentralized Borrowing and Lending protocols.
Conclusion
Algo stable coins present an excellent opportunity for truly decentralized alternatives to collateralized stablecoins. After recently completing a successful migration from BAS to BASv2, Basis Cash is quickly emerging as the leader in the algo stablecoin marketplace.
In the future, multichain interoperability and ecosystem adoption will likely play a huge role in the eventual success of Basis Cash. Basis Cash continues to become more interoperable and integrated into a number of blockchain applications on both Ethereum, Binance Smart Chain and other blockchains. By using BAC instead of asset backed stablecoins, users can be confident that decentralization is maximized and third party trust is reduced. Over time Basis Cash will continue to integrate and expand into the ecosystem of Defi apps and services.
