I would like to propose that AAVE add support for both the $BASED and mbBased tokens. $BASED also known as Based.Money is a decentralised rebasing stablecoin asset where a stable price level is targeted via a variable supply and a notionally pegged price as opposed to a variable price and a fixed supply. Unlike AMPL who have attempted to peg to USD, $Based is attempting to peg 1 $Based to 1 sUSD (Synthetix sUSD – the most decentralised liquid stablecoin in DeFI currently). Details around the protocol’s specific methodology for rebasing can be found on the website: https://based.money
One other important difference from AMPL is the community driven ‘fair launch’ approach driven by a great anonymous cabal know as ’The Ghouls’. The ‘fair launch’ distribution meant that there were no ‘founders rewards’, no ‘team allocations’, no ‘ecosystem allocations’, and that everyone had an equal chance to ‘farm’ the currency during its ‘pool 0’ and ‘pool 1’ phases.
The other important thing to note is that the $BASED money protocol is effectively immutable as the ‘keys’ have been burnt. There is no in protocol governance nor ability for centralised actors to interfere with the operation of the currency.
While Based Money was originally, in the words of the founders:
“The BASED Protocol is a DeFi game of chicken designed to shake out weak hands and yield the highest gains for those who understand the rules…The $BASED token combines a simplified version of Ampleforth’s economic policy with YFI’s distribution mechanism. The result is a post-modern economic game that continually resets. The barrier of entry is fair and balanced for all participants.” It has now progressed beyond this initial conception via multiple novel, innovative and community focused decentralised finance innovations including Based Collective (NFTs and Based art/memes) & Moonbase (community focused, collaborative, positive EV farming), and the Ghouls pioneering NFT backed debt.
The Ghouls most recent innovation is mbBased, this acts as a standard erc-20 (no rebasing) and represents the proportionate share of any individuals % ownership of $Based. As such mbBased provides a much simpler way for projects to integrate Based Money due to the lack of rebasing (holders still get rebased on their underlying $Based tokens).To get mbBased, $Based holders stake their $Based in the Moonbase, where other projects are able to deploy rovers and farm their tokens and slowly sell them over the course of a year. In return they access the power of the Based community via memes and other support. The gains from these Rover farms are used to market buy $Based and return that $Based to the Moonbase when the rugpull function is called. There are 3 projects currently deploying rovers, with another 7 lined up in the short term. Demonstrating the power of the Based community, approximately 70% of $Based is locked in the Moonbase earning an APY of .3%, and mbBased was a comfortable winner in round 1 of Yield Wars.
$BASED and $mbBASED are currently traded on Uniswap. The two main pairings are $BASED/sUSD and $mbBASED/$BASED.
Liquidity is set to increase as the ecosystem grows and gains more traction. In particular liquidity incentives are planned around the development of Based v1.69.
Uniswap $BASED liquidity overview: https://info.uniswap.org/token/0x68a118ef45063051eac49c7e647ce5ace48a68a5
sUSD-$BASED Pair: https://info.uniswap.org/pair/0xaad22f5543fcdaa694b68f94be177b561836ae57
Uniswap Moonbase (mbBASED) liquidity overview: https://info.uniswap.org/token/0x26cf82e4ae43d31ea51e72b663d26e26a75af729
Benefits for AAVE:
AAVE will benefit by having two new & novel stablecoin like assets to offer users (one rebasing and one non-rebasing) leading to greater revenues, TVL & protocol liquidity. Having these assets also helps to de-risk the AAVE portfolio by introducing non-correlated & decentralised assets.
The other benefit is the co-operation between the AAVE and BASED communities, Based<>Aave memes, and future benefits to AAVE as a result of upcoming Based developments such as Based.Swap/Based v1.69