Basis Cash — or BAC — is a cryptocurrency whose value is designed to indirectly track the US Dollar, by tracking the value of the DAI stablecoin. It achieves this through market-based monetary policy that tends to stabilize the BAC price.
Contractionary Policy — The Basis Cash system incorporates the concept of a “Basis Cash Bond”, or BAB, which can always be redeemed for 1 BAC. When the market price of BAC is less than 1 DAI, BAB can be purchased at a discount, meaning you can purchase 1 BAB for a price less than 1 BAC. Purchasing BAB for BAC removes BAC from the circulating supply, which should work to increase the price of BAC.
Expansionary Policy — The Basis Cash system incorporates the concept of a “Basis Cash Share”, or BAS, that entitles the holder to receive newly minted BAC when the price of BAC is above 1 DAI. As the circulating supply of BAC is increasing during expansion, this should work to decrease the price of BAC.
These two contrary mechanisms are designed to work in tandem to keep the price of BAC oscillating around one DAI.
Epochs — In order to dampen price volatility, the BAC protocol compares its price with DAI, and makes any necessary monetary policy shifts, once per 24 hour, known as an “epoch”.
TWAP — Also in order to dampen volatility, shifts in monetary policy are not triggered by the current market price of BAC, but rather the “TWAP”, or time-weighted average price, measured over the past 24 hours.
Let’s now explore three ways to earn BAC and BAS, beginning with the Boardroom. →
- 1What is Basis Cash?An open-source, permissionless algorithmic stablecoin.
- 2Earn BAC in the BoardroomStake your Basis Shares in the Boardroom to earn BAC during expansion.
- 3Earn BAS in the BankProvide liquidity on Uniswap to earn BAS.
- 4Earn BAC by buying BondsPurchase bonds at a discount when BAC is in contraction.
- 5Basis Cash GovernanceGet involved, and help shape the future of Basis Cash!
- 6Basis Cash ResourcesEssential resources of the Basis Cash ecosystem.