BASED has a new method for cultivating decentralized finance (DeFi) projects. At the heart of it all is a smart contract called Moonbase.
A new space where everyone gains something
Based.Money is a project of the Ghouls, an independent consortium of cryptocurrency developers, artists, designers and meme creators. Based.Money uses a mechanism that refers to the Ampleforth reduction algorithm, where a daily readjustment is made in the BASED token offer, adjusting the prices in everyone's wallets. At the moment it's just an optimization game, but Moonbase has more serious intentions.
The goal is to create a space that everyone can benefit from, explained Jitsi, the pseudonymous leader of the project, known as Based Money God. “Most DeFi projects are not inherently decentralized. They are inherently biased or biased because the VCs support them, ”Jitsi said. "As these projects grow, VC allocations have a disproportionate amount of tokens." Moonbase creates a way in which new projects can contribute to the BASED community to support, promote and support the new project for at least one year. It could almost be called community mining.
How does it work?
DeFi projects that want to become part of Based will mint a new smart contract called Rover. The Rovers will be uniquely associated with each project. The core idea of a Rover is that all assets that go into it will go through an unlock period of one year (so if there are 365 DAI inbound, the last DAI will unlock at the end of a year).
As the underlying assets are unlocked, they will be exchanged with BASED and sent to the Moonbase, rewarding all participants proportionally. Basically, Moonbase is another smart contract where anyone can enter BASED and retrieve mbBASED, which represents a quotation proportional to BASED in the contract (such as Compound's cTokens). This means that mbBASED holders will want any business in Rover to grow in value. But the alignment is destined to go further. A project can put anything it wants into a Rover with the logic it wants.
The Ghouls expect the projects to create special liquidity deposits for mbBASED who will have their own formulas for earning rewards for liquidity mining, and the earnings for that pool will not go to the depositor but to the Rover. Take, for example, a decentralized exchange called RDEX that was launched this way. It could create an mbBASED-DAI pool where half of the mining rewards go to the depositor and the other half go to the REDEX Rover.
“It's like a tribute to Based God,” said Based Money God. By setting it this way, the project has an incentive to try and really grab the attention of Moonbase depositors, because no rewards go to the Rover if no one deposits. This is why the name Rover was chosen. "We are writing a manifesto," Jitsi said. "BASED is whatever the community decides to be based."
