Basis Gold is a DeFi project that presents a stable monetary system aligned with the blockchain ecosystem, specifically targeting the stability of its native token against the price of gold. It utilizes an algorithmic approach to automatically adjust the token supply based on demand, mirroring central bank strategies for currency stabilization. The project introduces a synthetic commodity-money pegged to gold value, designed to provide a non-volatile asset in the DeFi space through a unique token trifecta: Basis Gold (BSG) pegged to gold, Basis Shares (BSGS) for governance and dividends, and Basis Bonds (BSGB) employed for peg maintenance via supply adjustments. Additionally, it incorporates a governance token, BUILD, for protocol decisions. Basis Gold extends the foundational work of Basis Cash and the original Basis team, innovating with algorithmic synthetic gold assets managed by a protocol stabilizing supply for equilibrium with gold's market value.
Basis Gold is a DeFi project that presents a stable monetary system aligned with the blockchain ecosystem, specifically targeting the stability of its native token against the price of gold. It utilizes an algorithmic approach to automatically adjust the token supply based on demand, mirroring central bank strategies for currency stabilization. The project introduces a synthetic commodity-money pegged to gold value, designed to provide a non-volatile asset in the DeFi space through a unique token trifecta: Basis Gold (BSG) pegged to gold, Basis Shares (BSGS) for governance and dividends, and Basis Bonds (BSGB) employed for peg maintenance via supply adjustments. Additionally, it incorporates a governance token, BUILD, for protocol decisions. Basis Gold extends the foundational work of Basis Cash and the original Basis team, innovating with algorithmic synthetic gold assets managed by a protocol stabilizing supply for equilibrium with gold's market value.
Basis Gold aims to provide a stable and scalable monetary system within the decentralized finance (DeFi) space by pegging its token to the value of gold. This algorithmic synthetic commodity-money offers a non-volatile asset, helping to stabilize the market akin to central banks.
Basis Gold uses algorithmic and on-chain mechanisms to adjust the supply of its native token in response to demand fluctuations. This approach aims to ensure the token remains pegged to the price of gold, utilizing a combination of Basis Gold, Basis Shares, and Basis Bonds to facilitate supply adjustments.
Basis Gold offers the benefit of being a gold-pegged, non-volatile asset within the DeFi ecosystem. Unlike traditional fiat-pegged stablecoins, this project seeks to combine the value stability of gold with decentralized finance mechanisms, providing a stable yet decentralized digital asset.
Basis Gold differentiates itself by using algorithmic mechanisms rather than physical reserves to maintain its value peg to gold. This allows for a decentralized and scalable approach to stability, unlike traditional gold-backed cryptocurrencies which rely on actual gold reserves.
Basis Shares (BSGS) are awarded to initial supporters and play a crucial role in governance, alongside receiving dividends from network fees. They help maintain the peg by participating in the protocol’s supply expansion when the price is above the target.
When the Basis Gold token price falls below the target, users are encouraged to purchase Basis Bonds (BSGB) at a discount. By burning BSG to acquire BSGB, participants help contract the supply, thus stabilizing and eventually elevating the token price back to its targeted value.
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