The BASIS token launch

TL;DR:

  • basis.markets is launching the BASIS token to unlock the potential to scale the basis.markets Decentralised Basis Liquidity Pool to a higher TVL and at speed.
  • Trading fees from the future Liquidity Pool are modelled to reach up to $10m per month.
  • BASIS token holders will be entitled to their share of trading fees, proportionally to their BASIS holdings staked, as well as an attractive staking programme, and a discount on Liquidity Pool fees themselves.
  • Trading fee revenues are modelled at a conservative $35k per 100,000 BASIS over 3 years, excluding compounding or any token price growth, and paid in our non-inflationary, USDC-backed bmNOW token
  • The BASIS token will be launched in a customised dutch auction running from 8th — 11th December 2021. You can find the countdown at ido.basis.markets
  • Consistent with our seed funding round through Ownership NFTs, we are adopting a fair, decentralised approach with no presale, VC funding, or early owners.
  • Our auction mechanics are based on the open source model developed by Mango Markets and customised to avoid manipulation.

The basis.markets story so far…

Our vision

In the past few months, basis.markets has seen rapid growth since we set out an ambitious vision: Next-level returns. Delta-neutral yield. Real-time insights.

  • Decentralised Basis Liquidity Pool (DBLP): A managed liquidity pool taking advantage of the high APRs offered by the Basis Trade Engine and other high-return, evergreen strategies on behalf of users, automating the process of executing these trades for investors.
  • Basis Trade Engine (BTE): A trade analysis platform scanning real-time data to highlight the highest return trades from across 15 exchanges, including basis trades, long & short trades, and more. We have launched the alpha version of the BTE on the 1st December, and are already collecting feedback and making improvements with suggestions from members.

What we’ve achieved

We’ve achieved a lot in a short space of time, and are committed to a fast pace of growth:

  • Core team identified and built
  • Top-tier developers recruited and onboarded
  • Trading strategies developed and tested
  • Sell-out seed round of Ownership NFTs (25x oversubscribed)
  • DAO community and voting mechanism launched
  • Basis Trade Engine alpha release

The basis.markets community

basis.markets is committed to decentralisation — we see this as one of our key differentiating factors — putting the ownership of the fund in the community’s hands, rather than those of VCs and big players with early access. Our initial launch sold 5,000 “Ownership NFTs” and changed the model of seed investing — giving access to all rather than a select few.

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What’s coming next

Our initial vision for the Decentralised Basis Liquidity Pool had modest growth projections, offering a service managed by our small team to automate non-directional trade strategies for those who wanted a hands-off approach, and estimating a TVL of circa $100m.

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Introducing the BASIS token

The BASIS token is being launched as a single, simple mechanism to govern how trading fees from the Decentralised Basis Liquidity Pool are given back with the community.

Utility of the BASIS token

  • Trading fees: Passive income through fair allocation of fees generated by the Liquidity Pool(s) and paid in non-inflationary, dollar-pegged bmNOW tokens
  • Staking rewards: Early access to high staking rewards, paid in additional BASIS tokens, ahead of Ownership NFT holders
  • Future cash flows: Ability to speculate on the future value of trading fee rewards
  • Discounted investment: Tiered discount on Liquidity Pool trading fees
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Tokenomics

Our tokenomics and vesting schedule have been designed to promote the decentralisation of basis.markets’ ownership model, whilst providing attractive rewards to BASIS token holders and all members of the community.

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  • Token sale: 25%
  • Ownership NFT holders: 50% (vested over 6–24 months)
  • Staking & liquidity rewards: 24% (vested over 12 months)
  • DAO contributors & seed liquidity: 1%
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Our philosophy & the bmNOW fee token

We have a pledge to our token holders, to disperse the fees earned from the basis.markets pool evenly among the staked token holders. This means we will be using a completely new tokenomics model.

The BASIS token sale

The BASIS token sale will follow a tried-and-tested approach to our token launch, following a “dutch auction” style using a modified and enhanced version of open source code kindly shared by Mango Markets.

Auction process

The token sale will take place over 72 hour

  • Price Discovery Period: 48 hours
  • Price Refinement Period: 24 hours

Our customised auction model

Our goal is to run a token sales that is simple, fully transparent and minimises the possibility for an unfair distribution through “gaming the system”. Our modifications to the process used by other recent token sales disincentivise this manipulation, whereby high capital players could deposit large amounts to artificially inflate the price, scaring off smaller players and reducing the pool size, only to withdraw large sums during the second period and crash the price, ensuring a high proportion of tokens for themselves.

  • Limiting withdrawals to 50% of total capital deposited, meaning large players can’t deposit large amounts and then withdraw
  • Allowing additional deposits, meaning participants can add additional capital if the price falls to a level they would like to add additional capital

Timeline

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The Timing of the token sale

Start 8th December 2021–8pm GMT (3pm EST, 4am HKT(9th)) — PRICE DISCOVERY STARTS

Auction details

Buyers get a pro-rata price at the end and every participant gets the same price for BASIS Tokens.

Staking programme

Our staking programme will launch shortly after the token sale, incentivising early holders with rewards paid in BASIS in advance of the DBLP going live in Q1/Q2 2022.

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What’s on the roadmap?

Our roadmap can be found at https://basis.markets/roadmap, and is updated regularly — next update coming 2nd December

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Where next?

The countdown is now live on ido.basis.markets.

Appendix 1: Our protocol universe

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basis.markets

basis.markets

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A decentralised liquidity pool owned by you, powered by our Basis Trade Engine. Next-level returns. Delta-neutral yield. Real-time insights.