Based Money, a DeFi project
People play games for fun while others invest in the games. It is rare to get a suitable game that entails investment and risk. Based Money is a game that is more of investments. All it needs is participants with a clear understanding of it. Based Money has independent rules that govern it, thus making it present with a unique opportunity and value for the DeFi space to play a different economic game. The BASED Protocol has its rules, features, advantages, and disadvantages to the participants.
As in many games, BASED Protocol has its rules. Surprisingly, the only law applicable in $BASED token is that participants cannot change the rules. There are no owners in $BASED. That is, no participant needs to have private keys in $BASED. This rule makes the game to be more exciting and fair to anyone. It sets standards that a participant will conform to during and after the game hence, making one becomes a gainer or a loser.
However, BASED Protocol has its features designed to control the gaming and determining each participant’s performance. This feature is the adjustment of $BASED token. Adjustment entails trying to balance the ration between $BASED and $sUSD. The adjustment targets a ratio of 1:1 between $BASED and $sUSD. The adjustment takes place once in every (24 hours) interval due to the fluctuating of currencies in the stock exchange market.
The adjustment makes a volatile supply target a stable price. A change in $BASED affects all $BASED holders. The value of $BASED token a holder has does not change; however much there are other changes. For example, when a $BASED holder has 10percent of the supply, then he or she will always own 10 percent of the supply regardless of future changes in the market cap.
The other feature is that changes in the value of $BASED tokens a $BASED holder owns depend on the changes in the demand of the $BASED tokens. That is, an increase in the demand of the $BASED token leads to an increase in the number of $BASED tokens a $BASED holder owns. Reduction in the demand for $BASED tokens leads to the decrease in the number of $BASED tokens a $BASED holder holds.
A rebase event occurs when the difference between the $BASED and $sUSD is more than five percent. When the difference between the $BASED and the $sUSD is above five percent, the supply expands. On the other hand, the supply contracts when the difference between $BASED and $sUSD is less than five percent. The rebase results in a smooth adjustment of the supply for all holders for ten days in an attempt of meeting the value ratio of $BASED and $sUSD (1:1). The balance in each participant’s account owning $BASED tokens can either increase or decrease due to the rebase.
An advantage comes when the rebase event provides a $BASED holder with the opportunity to take advantage of future changes in price movements. That is, when a $BASED holder has $1000 $BASED tokens worth $1500 sUSD before the rebase event, then his or her account balance shall be worth 1500$BASED tokens at the end of the rebase event. Many $BASED holders like such advantages in the BASED Protocol as they see it an opportunity to grab several gains in the forthcoming changes in price movements.
The rebase leads to the changing of the entire dynamic behind DeFi by providing new strategies for trading. In this case, the participants cannot make decisions relying on price alone. However, they make decisions considering supply changes too, which could lead to more significant gains. $BASED holders need to do their research before participating in the games for them to gain massive yields.
On the other hand, a disadvantage comes when the rebase event does not provide a $BASED holder with the opportunity to take advantage of future changes in price movements. In this case, a $BASED holder might get less balance at the end of the rebase event. However, the $BASED holder receives the best opportunity to return into the game. Moreover, the $BASED holder may build up his or her stack in proportion to the overall market cup for the sake of yielding better gains in future.
Furthermore, $BASED token has two different staking pools which are Pool 0 and Pool 1. Each pool has its requirements that someone needs to meet before joining. The procedure for joining the two pools is the same except the differences in time taken and amount of tokens. For Pool 0, the time taken before launching it is 12 hours while for Pool 1, the time taken before launching is 72 hours. In Pool 0, an amount of 25,000 $BASED tokens are distributed among participants staking according to the halving schedule, which can take almost seven days of distribution. In Pool 1, an amount of 75,000 $BASED tokens are distributed among participants staking according to the halving schedule, which can take a much longer time.
Having an investment game is attractive, as well as risks. The features of Based Money make the players experience a fair game. As well, the features make the players to either win or lose. You can consider joining Based Money for a good gaming experience.