PlasmaPay Announce Partnership with Base Protocol
PlasmaPay is delighted to announce a new partnership with Base Protocol (BASE). Thanks to this team-up, BASE will now be available on Plasma as an asset that users can lend and borrow, and even use for trading.
BASE is a very unique and interesting cryptocurrency whose price is pegged not to a single asset, but to the entire cryptocurrency industry. In other words, the state of the industry will dictate the price of BASE.
For example, if the market cap of the crypto industry is $400 billion, the price of a single BASE coin will be $0.40. If the price jumps to $800 billion, BASE price will have skyrocketed to $0.80. BASE is pegged to the crypto sector at 1:1 trillion.
One thing that Plasma’s and BASE’s users will particularly be able to benefit from is using BASE for lending/borrowing.
There are other lending platforms out there, but their prices can be volatile. This is not very encouraging to borrowers, who prefer stablecoins which won’t leave them owing more than what they have borrowed, plus interest.
What if users could use this volatility to their advantage instead? If someone were to borrow 1,000 BASE and buy another crypto, whose price would then fall by 50%, that kind of fall will have likely meant that the entire crypto sector saw a significant drop.
So, let’s say that the coin bought with BASE did fall by 50%, and that the total crypto market cap dropped by 30%. That would make BASE 30% cheaper, and so, even though the coin that you bought is 50% cheaper — your loss is only 20%. This is the benefit of borrowing and using BASE as a base for your crypto trades.
You can now borrow BASE on PlasmaPay’s lending dashboard, and even sell it on PlasmaPay’s DEX.
Base Protocol’s Nick Ravanbakhsh said:
“One of our favorite use cases for BASE is as a borrowable asset for traders to hedge their positions with. We are very excited to integrate BASE on PlasmaPay, where users will be able to lend, borrow, and trade BASE. Plasma will help make Base Protocol more accessible for users around the world. And BASE will help Plasma reach its own goal of bringing innovative, decentralized finance services to its users.”
Ilia Maksimenka, CEO of PlasmaPay, said:
“BASE is unique and very interesting, and it allows users to borrow funds and suffer reduced losses if the industry starts moving in a negative way. You cannot do that with any other asset, which is why BASE might easily become a go-to option for lending and borrowing. We are happy to have it available on the Plasma app and offer it to all of our users.”
About PlasmaPay:
PlasmaPay is a global cryptocurrency wallet and digital payments DApp (decentralized application) that provides fiat on/off ramp services via mobile and desktop apps to users from over 165 countries. Individuals and businesses can use the upcoming PlasmaPay dashboard to buy, sell or exchange digital assets and send or receive cross-border payments. Built on their own public blockchain tech called the Plasma DLT (distributed ledger technology), PlasmaPay aims to be the missing link that connects the underbanked and unbanked population with the DeFi ecosystem to provide them financial services without banks.
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