BIP-X

A Vision for Basis Cash V2

BIP-X is an overall roadmap for the future direction of Basis Cash. With BIP-X as the starting point, Basis will enter a new phase, leveraging the prolific expansion of DeFi for growth independent of existing financial infrastructure. BIP-X has three phases as detailed below.

V2 Phase 1 (Seeking Stability)

Migrating liquidity to Stableswap pools is expected to aid the stabilization mechanism to anchor the BAC price to $1. crv.finance and other stableswap protocols will lead the start of V2 Phase 1. In the process of migrating liquidity to V2, users who initially provide liquidity into the stableswap pairs will be incentivized with rewards (Specifics will be announced shortly as we are still working with the respective teams to finalize the details). Furthermore, assets of the CDF (Community Development Fund) may be used to smoothen the process of migrating liquidity by deploying in-house arbitrage vaults.

V2 Phase 1 will entail a token migration (creation of a new BAS token) so that the allocations of BAS emissions can be decided by governance. In other words, it will be possible to reallocate the current BAS rewards to better align the incentives of BAS,BAC and BAB, and also give us the flexibility to incentivize strategically needed pairs with BAS rewards. We are in ongoing discussions with Sushiswap to launch various BAC-based pairs, which could be incentivized with BAS rewards.

Additionally, we are designing an integrated lending protocol to increase the demand for Basis Cash:

• Users will be able to borrow BAC with high LTV by supplying other stablecoins such as DAI, USDC, USDT.
• BAC-DAI farmers will be able to leverage their BAC-DAI positions while farming BAS through a proxy contract.

V2 Phase 2 (Universality post-Stability)

After a successful migration, we expect price stability to improve over time. Once we are able to maintain a stable peg, we plan to expand the Basis ecosystem through various applications to create demand for BAC as a key-currency.

• Savings account / Cash App

Today, we live in an era of low interest rates, where the bank interest rate is far below the inflation rate. We think it is important to offer users an easy, recognizable solution analogous to a savings account. An integrated fiat on-ramp is expected to drive substantial adoption. It will utilize Basis’ in-house vault, allowing users to earn fixed interest by depositing BAC straight from fiat. Once Basis Swap is launched, interest will be generated through providing liquidity to our in-house metapools.

• Basis Synthetic Asset protocol

The biggest advantage of Basis Cash is that the supply of money is determined by demand. In order to stimulate demand, Basis Synthetic Asset protocol(BSAP) will be able to issue synthetic assets through Basis Cash, which users will be able to purchase without restrictions such as KYC/AML. In addition, we plan to expand Basis’ DeFi footprint by implementing leveraged, decentralized markets for various on-chain indicators (such as ETH gas fees).

• Basis Vision fund

In order to expand the Basis ecosystem, a Basis Vision Fund is created to bootstrap new applications and ideas built atop the Basis protocol. Investments and profits are transparently disclosed through the internal governance structure. Capital will be raised from the CDF as well as external sources. Funds would be parked in our in-house vault and withdrawn at the time of deal execution. We are in exploratory talks with seed investors. However, this is not a priority until after the successful migration to Stableswap.

V2 Phase 3 (Rebuilding the DeFi Stack)

Current DeFi always carries regulatory risk. This means that the stablecoin, which is currently serving as the back-bone of DeFi, is incomplete, and it is possible to re-build the current bureaucratic DeFi stack as the adoption of Basis Cash grows.

• Basis Swap

Basis Swap is a DaMM (Dynamic-automated Market Maker)that uses Basis Cash as a key currency. Less slippage occurs between stable assets, and Basis Cash is used as a routing asset for all transactions through a pair based on Basis Cash for both stable & non-stable assets. Through this, Basis can derive a Basis Price Index (BPI), and after enough data has been accumulated, we aim to develop it as its own stable coin that is not pegged to 1USD.

Users who provide liquidity to Basis Swap will receive Basis Shares, which are yield-bearing assets that will receive an actual cash-flow, including governance rights for the overall protocol.

Current Priorities and Timelines

• CDIP5 Staking Pools — by January 24
• New UI Release — by January 22
• BIP9 Implementation — by January 22
• Tentative Token Migration — week of Feb 1
• Cash App/Savings Account — Q1 2021
• Basis Synthetic Asset protocol — Q2 2021
• Basis Vision Fund — Q3 2021
• Basis Swap — Q3 2021

Disclaimer: The opinions expressed belong to the authors and should not be considered financial advice. We strongly recommend that you do your own research and/or speak to a qualified investment professional before taking any financial decisions.