Introducing Basis Lending
A Decentralized Lending Protocol for the Basis Cash Ecosystem
With less than 2 weeks to go until the launch of Basis V2, the team is excited to announce that Basis Lending is ready to go live, resulting in improved capital efficiency and enabling additional use-cases and yield farming strategies within the Basis Cash Ecosystem.
Inspired by Compound, Basis Lending has been audited by Haechi Labs.
Basis Lending will go live in April 2021.
How It Works
The following initial set of assets will be enabled at launch:
- Basis Cash (BAC)
- Basis Share (BASv2)
- Basis Bond (BAB)
- BAC/DAI UNI LP tokens
- BASv2/DAI UNI LP tokens
Detailed documentation regarding the exact mechanisms will be released in the coming days.
Leveraged Yield Farming
Basis Lending will enable users to maximise their rewards by leveraging their LP tokens.
Leveraged Farming Strategy
Alice adds liquidity to the BAC-DAI UniswapV2 pair, and farms BASv2. She also gets Uniswap fees, and wants to maximise her yield.
- Alice leverages by staking her BAC-DAI UniswapV2 LP tokens as collateral, borrowing BAC, and adding more liquidity to BAC-DAI UniswapV2 pair.
Bob wants to get both BASv2 yield farming rewards and Basis Boardroom seigniorage when BAC is trading above $1.
- Bob adds liquidity to BAC-DAI UniswapV2 pair, stakes his LP tokens as collateral, and borrows BASV2.
- Bob stakes the borrowed BASV2 in the Boardroom and is eligible to receive seigniorage when BAC is above $1.
V2 Basis X Pickle Vault Strategy
Basis V2 provides for dynamic BAS emissions that are allocated between BAC-DAI LP and the BAC Vault. Utilizing the lending protocol, the vault may stake deposited BAC as collateral and borrow other assets (BASv2 or DAI depending on the strategy) and maximize the vault yield without selling BAC.
Basis Lending Token
A new token will be issued to incentivize and govern Basis Lending. Detailed tokenomics will be released post-launch after a minimim organic TVL target has been achieved.
- Early LPs who supply assets to Basis Lending will be generously rewarded.
- BAS will remain the ecosystem’s main Governance token, and there will be an airdrop for BAS holders who supply initial liquidity to Basis Lending.
- A portion of Basis Lending profits will be sent to the CDF, providing another source of value accrual for BAS.