BasisMoney — The Better Algorithm Stablecoin
BasisMoney is an open-source, permisionless, highly- scalable, decentralized, algorithmic protocol built on Hecochain.
This is a protocol inspired by Basis.cash. We found some design flaws in Basis.cash and made improvements. But retain the underlying structure of Basis.cash, because we believe that a structure that has been tested by time and users is stable and safe.
Different from Basis Cash
· Rebase once every 8 hours
· Rebase Rewards will be distributed to BMS pool and BMS-HUSD LP pool in a ratio of 6:4.
· BasisMoney Share max cap is 100000
How Does Basis Money Work
While several different designs of algorithBMC stablecoins have launched, we believe that the Basis Cash design is the best out there. It’s proven to be resilient while also having the widest distribution of users. Basis Money is a fork of the Basis Cash protocol.
The Basis Money protocol controls money supply similarly to how central banks of the world may guide the value of fiat money through monetary policy. By controlling the quantity of money supply in an economy by buying or selling bonds, a target value can be achieved (In this case $1). Instead of a central bank or a currency board, rules are set and executed programmatically via smart contracts so that behavior of the system can be predictable.
There are three tokens in the Basis Money protocol — BasisMoney Cash(BMC), BasisMoney Share (BMS), and BasisMoney Bond (BMB). BasisMoney Cash is the stablecoin token in the system with a target value of $1. BasisMoney Share token holders will be the backbone of the system, providing resources and guidance to the protocol. In return, BasisMoney Share token holders will receive any new money supply that enters the system. BasisMoney Cash and BasisMoney Bond tokens are designed to move in price and guide BMC towards $1. The goal is to keep BMC priced between $0.95-$1.05 in the long-run so that it can be a viable stablecoin.
When BMC exceeds $1
When BMC trades above $1, simple supply and demand theory suggests that increasing the supply of BMC tokens in circulation would guide the price back toward $1. In this phase, users will be able to redeem BMBs for BMC at 1:1. If BMC trades at $1.05 during the set seigniorage time (every 8 hours currently), more BMC will be minted and distributed to BMS token holders that stake their BMS in the Boardroom.
When BMC is below $1, BMB can be bought
When BMC trades below $1, simple supply and demand theory suggests that reducing the supply of BMC tokens in circulation would guide the price back toward $1. In this phase, users can purchase BMB with BMC at a discount, removing BMC from circulation, with the opportunity to redeem each BMB for one BMC in the future when BMC trades above $1.
Whenever a user purchases BMB with BMC, the BMC is burned, causing a decrease in the circulating BMC supply. Bonds do not have interest payouts, nor do they have maturity or expiration dates.
Purchased BMB can be redeemed on a 1:1 ratio into BMC only when the oracle price of BMC is above $1. This prevents expansion in supply during the contraction phase.
Token Distribution
The protocol starts with a BMS (BasisMoney Share) supply of zero, the entire supply minted purely via community distribution. The genesis distribution of BMC will be available to users who deposit any of the below tokens.
HT, HUSD, HBTC, HETH, HLTC, CYBER, BAG
35,000 BMC tokens will be distributed evenly across all 7tokens listed above in the genesis distribution at the rate of 1,000 BMC tokens per day over 5 days.
Afterwards, a total of 71250 BMS(BasisMoney Share) are distributed to those that provide liquidity to the BMC-HUSD pair, where users can deposit BMC and HUSD tokens to the distribution contract and earn BMS tokens. Distribution starts with 585 BMS distributed every day, and the amount of daily seigniorage is reduced to 75% every 30 days.
A further amount of Basis Money Shares(BMS) is given to liquidity providers of the Basis Money Share (BMS)-HUSD pair, distributing a total of 23750 Basis Money Share which lasts for 1 year (365 days), and an equal amount of tokens is distributed per day.
Basis Money is a completely transparent and community-run project. In line with this, there are no tokens pre-allocated to the team or investors. Ordinarily, this would create a sustenance problem, as team may lose motivation to grow the project and funds may not be available for other important things such as advertising.
To remedy this, separate funds will be established. These funds will only be generated as tokens are mined.
Team fund (10%)- The team fund will incentivize the current team as well as any future additions to continue giving their best for the progress of the project.
More Infomation
BasisMoney https://basismoeny.finance
Github :https://github.com/basismoney
Telegram : http://t.me/basismoney
Twitter : https://twitter.com/BasisMoney
