Basis Cash V2 Migration Plan
BASv2 Token Address : 0x106538CC16F938776c7c180186975BCA23875287
- Users will need to exchange their BAS tokens for BAS V2 at http://migrate.basis.cash
- Migration will commence at 0000 UTC on 7 February 2021
- The Migration Window will be open for 15 days until 0000 UTC 2/22
It’s been two months since the launch of Basis Cash. From the outset, the team has followed one mantra : develop, observe, analyze and iterate.
Basis Cash was started as a simplified implementation of the Basis Protocol. Observing the behaviour of market participants and incorporating feedback from the community has allowed us to develop what we believe to be an optimal design for Basis V2 that should enable BAC to return to peg. Coupled with new upcoming use-cases that will stimulate BAC demand, we are confident that Basis V2 will be a giant step forward on our journey to become the premier algorithmic stablecoin.
Without further ado, on to V2!
Stage 1: Preparation (2/1–2/6)
- The Basis Cash V2 Migration Plan will be posted soon at migrate-wiki.basis.cash
- #v2-faq channel has been created on Discord for further queries.
- Users who have faced issues with past token migrations with other projects are requested to share their experiences in the above channel so that we can attempt to avoid similar mistakes and make the migration process as smooth as possible for all BAS holders.
Stage 2: Token / Liquidity Migration (2/7–2/21)
Migration Window: 0000 UTC 2/7/2021 to 0000 UTC 2/22/2021
During the migration window, users will have to manually swap their BAS V1 tokens to BAS V2. Once the migration window is closed, the swap function will be deactivated and you will no longer be able to exchange your tokens.
BAS Token Exchange: Users will have 15 days to swap BAS V1 to BAS V2 using the UI at migrate.basis.cash
BAC/DAI Liquidity Pool Migration: This process will require 2 steps:
- Remove liquidity from the current BAC/DAI Uniswap pool
- Add liquidity to the new StableSwap pool at liquidity.basis.cash
BAS/DAI Liquidity Pool Migration: A new BASV2/DAI Uniswap will be created and users will have to:
- Remove liquidity from the current BAS/DAI Uniswap pool
- Swap BAS V1 for BAS V2 at migrate.basis.cash
- Add liquidity to the new BASV2/DAI Uniswap pool (details TBA)
Reallocation of BAS Rewards
The driving force behind this migration is the ability to reallocate BAS emissions in Basis V2 as determined by Governance, since the current smart contracts are hard-coded and cannot be modified.
During the migration window, both BASV1 and BASV2 emissions will continue to their respective pools. However, at the end of the migration window, BAS V1 emissions will cease.
BAS V2 emissions will be dynamically allocated based on market conditions.
BASV2/DAI will receive enough emissions to maintain adequate BAS liquidity. Strategic BAS pairs such as BASV2/BAC and BAB/BAC will be incentivized, subject to governance approval.
BAC liquidity will be migrated to StableSwap and BAS emissions will be dynamically allocated by the Basis Cash algorithm to 3 areas:
- Users who provide BAC liquidity to the StableSwap Pool
- Users who provide other stablecoins (DAI/USDC/USDT) to the StableSwap Pool
- Our BAC Vault that we are developing in collaboration with Pickle Finance
BAS V2 Emissions Configuration for BAC LPs
Simply put, the algorithm will incentivize BAC deposits when below peg and vice-versa (rewards will favour depositors of other stablecoins when above peg). The exact formula is being kept under wraps for now, but will be shared when the Basis V2 design is put up for Governance approval.
BAC Vault Configuration
As announced previously, we are collaborating with Pickle Finance to develop our in-house BAC vault which will be integral to Basis V2 and augment the stabilization mechanism.
This bespoke vault will accept single-asset BAC deposits and operate as follows:
When BAC > $1:
The vault will sell a portion of BAC deposits for stablecoins and provide liquidity to the StableSwap pool. Farmed BAS will be distributed to vault depositors in addition to a % of BAS emissions.
BAC sales will be conducted as below:
- If BAC is trading at $1.01, 1% of Vault deposits will be sold every hour
- If BAC is trading at $1.02, 2% of Vault deposits will be sold every hour…When BAC < $1:
The vault will withdraw stablecoin liquidity from StableSwap and buy BAC. The vault will receive dynamic BAS emissions that will increase as we move further from peg, and decrease as BAC approaches $1. This is intended to incentivize further BAC deposits, resulting in a drop in liquidity in the StableSwap pool, hence making it easier to return to peg.
Further, once we collateralize BAC, vault deposits will be used as collateral to borrow other stablecoins and farm more BAS to improve the vault’s yield.
We look forward to expanding this partnership even further in the coming months as we have ideas for novel vaults that will earn BAS + Pickle and potentially integrate with other DeFi projects for triple-yield!
Strategic Pairs — Introducing TIIPS
With the upgrade to BAS V2, we will have the flexibility to allocate BAS rewards to new liquidity pools that may present strategic opportunities for the Basis Cash Protocol:
- Pools to aid expansion of the Basis Ecosystem (BAS/BAC, BAB/BAC)
- Pools that can enhance the liquidity and stability of BAC (BAC/ETH&iETH, BAC/wBTC&iBTC)
- Tactical yield farming opportunities (Farm BAS + XYZ token)
Community members are welcome to suggest new pairs through Token Incentive Improvement Proposals (TIIPS).
Stage 3: Additional Peg Stabilization Measures
The mystery modules seen in the V2 design will be unveiled in the coming weeks. We are finalizing some details internally and also working with external partners to build exciting new use-cases for BAC.
Stay tuned! Detailed migration guides will be posted closer to the migration date. Please note that the migration UI is not active yet, but will be live within 48 hours.
#BasisV2
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