Thread: I can see a lot of people are confused by this new @BasedProtocol project.

But here it is in a nutshell, and why I’m very excited by it. https://www.coindesk.com/based-money-moonbase-defi-fair-launch-movement

Background: $BASED is a rebasing token, essentially a token where the amount in your wallet changes each day up or down depending on the price of the token.

Background 2: The anon devs and growing community behind $BASED have brought the DeFi space the absolute greatest memes, art, NFTs, etc to this space. They are second to none. It’s not even close actually.

Background 3: There’s been a lot of project launches lately, some pretty cool, but the tokens running them are getting farmed and dumped by people with no long term interest in growing the projects’ brand or viability.

So now there’s a way for projects to get the $BASED devs and community to get involved in their project. Here’s how it roughly works.

The new project locks up some tokens in a contract that gets released bit by bit over 1 year to the based community.
This incentivises the based community and devs etc to help that project get the ball rolling.

As the funds get released over that year, they get sold for $BASED, and that based goes into a vault ...

So how do $BASED owners get to profit from this?
If they head to the moonbase website now, they stake their $BASED coins and receive in exchange mbBASED. This is a token that represents their share of the $BASED in the vault.

Think of the mbBASED token as if it was like an LP token. When you stake usdc on curve for example, in exchange you get a different token (eg yCRV) that represents your share of the pool. It’s roughly worth your USDC PLUS all the fees your share has earned.

So as time goes on and more projects used the BASED community and offer rewards, and those rewards vest and get sold for $BASED and put into the vault, in theory your mbBASED token represents more and more $BASED tokens (rebasing effects notwithstanding).

Remember also the $mbBASED token itself does NOT rebase each day like $BASED, so it will be far easier for regular folks to assess the value of the token over time.

Anyway I think the project is a brilliant idea.