What is Basis Dollar?
Basis Dollar is a unique open-source, permissionless algorithmic stablecoin that aims to revive the original vision of BasisDollar.Fi. The Basis Dollar protocol was initially released as a lightweight implementation on the Ethereum blockchain, but the team behind the project has since made several modifications to the original mechanism outlined in its whitepaper.
One of the most significant improvements made by the Basis Dollar team is the price feed oracle, which is based on the average of two liquidity pool pairs, BSD/USDC and BSD/DAI. This makes it more challenging to manipulate the price, as the protocol uses time-weighted average price (TWAP) instead of exponential moving average (EMA). TWAP is more accurate and less prone to attack vectors.
Additionally, the epoch duration for expansion, which is the process of minting new supply, has been reduced to 12 hours. The protocol caps the newly minted Basis Dollars at 15% of the total supply during each epoch. This is a significant improvement over Basis Cash, which did not have any caps in place. The debt issued is also capped at 30% of the supply, which is the maximum Basis Dollar Bonds generated for each contraction. Unlike Basis Shares, Basis Dollar Bonds have no expiry date.
One of the most notable features of Basis Dollar is the minimum 35% expanded supply reserved for seigniorage shares for each expansion. This is a significant improvement over Basis Cash, which kept all the new supply for bond redemption if the balance was less than 1000 BSD. The Basis Dollar team also proposes a longer and fairer distribution schedule, as outlined in the Launch Strategy section.
The Basis Dollar protocol is an innovative stablecoin that is resistant to censorship and fairly distributed. The protocol's modifications to the original Basis project have resulted in a more stable and secure algorithmic stablecoin. With its unique features, Basis Dollar has the potential to become a mainstay in the DeFi space.
In conclusion, Basis Dollar is a revolutionary algorithmic stablecoin that has been designed to revive the original vision of BasisDollar.Fi. The protocol's innovative features, including the price feed oracle and seigniorage shares, make it more resistant to manipulation and more stable. The Basis Dollar team's commitment to fair distribution and censorship resistance sets it apart from other stablecoins in the market. As the DeFi space continues to grow, Basis Dollar has the potential to become a leader in the industry.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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