Overview
Problems with Liquidity Incentivization
Every protocol in DeFi needs to have a certain amount of liquidity for one reason or another. Whether it's Native tokens like ETH-USDC that give Treasury access to capital markets, Stablecoins like DAI-USDC that ensure stability by minimizing depeg risk, or Pegged assets like ETH-stETH that minimize opportunity cost of converting assets, each has to have a certain amount of liquidity for one reason or another.
However, the current solutions for incentivizing liquidity, such as Pool 2 emissions, Protocol owned liquidity, and Bribing voters in the CRV/CVX system, come with their own tradeoffs and pitfalls. Either they can be costly to maintain and result in unsticky liquidity, costly to bootstrap and only needed occasionally instead of on an ongoing basis, or costly due to incumbents already having a sizable lead, with a limited universe of pool types.
Introducing BasoFinance
Baso offers an attractive alternative by addressing these core issues and improving on them. The original mechanism of aligning protocol emissions with fees generated, not simply liquidity, is now enhanced. It allows protocols and large stakeholders to become veNFT "voters", using their locked voting power to direct future emissions and collect fees from the pools they voted for.
Tying rewards with Emissions
Baso made thoughtful improvements on the Solidly codebase. For example, tying rewards with emissions: in Baso, voting rewards were claimable before the emissions from that vote were committed. New mechanisms were introduced to address this, ensuring a healthy equilibrium between voters and external bribers, and promoting a fairer distribution of rewards.
Productive Gauges
Moreover, Baso ensures productive gauges. It has mitigated the risk of exploitive voters directing emissions towards unproductive gauges. Measures such as introducing an on-chain governor to whitelist pairs used in gauges and adding an Emergency "Commissaire" that can kill any unproductive gauge have been taken.
Also, Baso has doubled the initial swap fee to ensure that voters have more incentive to direct emissions towards productive liquidity. It's much lower than alternative exchanges and different fees apply to stable and volatile pairs.
Prolonged Emissions Decay
Baso also has a better emission decay policy. It allows the protocol to still be an attractive opportunity for future protocols while rewarding early adopters. Changes include modifying the emissions growth function, removing negative voting and LP emissions "boost" for voters, and adjusting the initial distribution to favor retail, veDAO community, and other sophisticated DeFi ecosystem participants.
White Glove Support
Finally, unlike Solidly's lack of post-launch support, Baso ensures white-glove support for partners and other stakeholders. With a 3% of perpetual emissions directed towards the team multisig, they have sufficient resources to pay contributors and expand the product offering.
Why does Baso choose to launch on base ?
Base Chain is a blockchain technology developed in collaboration between Coinbase and OP, aimed at addressing some of the issues with existing blockchain technologies and providing more efficient and secure services. Here are several reasons why we choose to launch our project on Base Chain:
Technical Advantages: Base Chain combines the technical strengths of Coinbase and OP, offering high levels of security and stability. It is designed to address some of the issues with existing blockchain technologies, such as slow transaction speeds and high costs.
Compliance: As a leading global digital currency trading platform, Coinbase has strict requirements for compliance. The design and operation of Base Chain will strictly adhere to relevant laws and regulations, which is crucial for our project.
Ecosystem: The collaboration between Coinbase and OP will bring strong ecosystem support. Our project will be able to leverage this ecosystem to interact with other projects and services, providing a richer set of services.
User Base: Coinbase has a large user base, which will provide strong user support for our project. Our project will be able to gain user recognition and support more quickly.
Innovation: The design of Base Chain is full of innovation, providing new possibilities for our project. We will be able to leverage the technology of Base Chain to provide better services to users.
In summary, the technical advantages, compliance, ecosystem, user base, and innovation of Base Chain all make it an ideal choice for us to launch our project.
Team
Our decision to keep our team's identities anonymous is deeply rooted in our dedication to true decentralization and self-governance for our project. This approach is designed to prevent any potential influence or manipulation by individuals or centralized entities. We believe that the spotlight should be on the technology of the project and the growth of its community, not on the personal identities of the team.
Moreover, we place great value in the strength of our community. By remaining anonymous, we empower the community to take a more active role, contributing to key decisions about the project. We are firm believers that the success of a decentralized project should not hinge on the charisma of individual personalities, but on the collective contributions of its entire community. This fosters a more robust environment of decentralized governance.
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