AMA TRANSCRIPT — SPYKEFAST x BASE PROTOCOL
Date : 28 OCT 2020
Host : HunterX , GemFlair & Groot
Guest : DYLANBASE , Base Protocol Team member
Hello! Spykefastians & Blockchain Enthusiastic!
We recently hosted an AMA with Base Protocol , on 28 OCT at 3 PM UTC . So here we are up with AMA transcript, for those who missed the live session, this post will be saver & feeder of knowledge for them.
Round 1 — Introduction Questions Asked By Spykefast
Q1. Can we have a small introduction about you? Your role in project?
Ans : I can give a quick intro on the team members for Base.
Nick has worked in tech startups since 2013, been involved in crypto since 2015, and began working on crypto projects directly in 2017. Nick has also have a portfolio of Airbnbs which generate passive income so he's able to focus on BASE full-time. He's the guy who writes all the copy for our papers, articles, and website. He's basically the storyteller for BASE.
Dylan Senter is a lifelong entrepreneur who has been active in crypto since 2013, spoken on multiple panels at different crypto conferences, and consulted over 50 clients across ecommerce, blockchain, and technology projects. He currently runs an ecommerce store with $1m in annual sales. Dylan is our business and marketing guru!
Chris has been programming professionally for almost 10 years and has been doing blockchain development since the Ethereum wave of 2017. He’s known for his YouTube channel Learn with Coffee (17k+ subscribers) where he teaches programming across different stacks through in-depth video tutorials. Chris is our head developer.
And Based McGee is our other core developer. All we’ll say about McGee is this; there is no higher level of Ethereum development expertise. He is a global elite. McGee likes to keep a low profile, so he’s opted to stay anonymous. But don’t worry - you can get to know him through his contributions on the GitHub and you can reach him through the Telegram and Discord.
Q2. Let’s hear from you.. What is base protocol? Is this just another rebase project?
Ans: Base Protocol is the worlds first crypto tokenized index fund. It is one token that represents the entire crypto marketcap. We are able to do this through rebasing technology, and we consider BASE to be one of the first viable use cases for rebasing.
We have a pretty great medium article we wrote that actually outlines our comparison to other rebase tokens, so check that out below.
Further, we are doing an interview with boxmining this week on his channel to discuss our position in the rebase industry.
https://medium.com/@BaseProtocol/base-protocol-the-next-generation-of-rebasing-9680ad7ad68f
Q3- How does rebase works in your project ? Suppose total marketcap increased from 300$ billion to 400$ billion , then how the price and supply of base token changed ?
Ans: BASE is a token that represents all cryptocurrencies. By holding BASE, you have exposure to the performance of the whole cryptocurrency industry - all in one token.
This is achieved by pegging the price of BASE to the total market cap of all cryptocurrencies:
If crypto market cap is $400B, BASE is $0.40.
If crypto market cap is $700B, BASE is $0.70.
With the Base Protocol, we are able to create the world’s first tradeable cryptocurrency market index - one token that represents all tokens.
You might be wondering, how is this possible? How can you attach BASE price to crypto market cap?
This is achieved through an ELASTIC token supply. This means all BASE tokens across the world can be multiplied (expanded) or divided (contracted) to tune scarcity and influence price. Here's an example of how that works:
Let's say the total market cap for crypto is $100B
So BASE target price is $0.10
t1 : Starting Equilibrium
John has 1 BASE worth $0.10.
GREAT. We are pegged. Awesome.
t2 : BASE Price Increases
John has 1 BASE worth $0.20.
Wait a minute, the BASE peg was thrown off. This isn't right. We need to do something.
t3 : Supply Expansion
John now has 2 BASE each worth $0.10.
So Boom. The protocol doubles the total supply of BASE, which influences the price to come back down to the peg. John's total $ balance after the price jump remains unaffected. But he still profits - but through his supply bonus, rather than just the price of the token.
These supply expansions and contractions are how the peg is held stable. Each expansion/contraction is called a Rebase.
Q4- Where does the data on total market cap come from to achieve accurate base token price peg ?
Is it Coin Market Cap?
Ans: or the Base Protocol to achieve its price peg, it requires one key data point: the total market cap of all cryptocurrencies (cmc). At launch, 11 off-chain cryptocurrency data APIs will be polled at regular intervals for market cap information by a quorum of Chainlink oracles operated by the Base Protocol team (soon to be operated by Chainlink). The Chainlink oracles calculate the median value of cmc across those 11 providers. The median is used rather than the average so as to better protect against extreme outlier values reported by any of these APIs, whether erroneously or maliciously.
For an inaccurate value to find its way on-chain, at least 6 of the 11 providers would have to be compromised or conspire together to defraud the network. At present, we consider this an acceptable mitigation against a highly unlikely scenario. Nevertheless, the more decentralized the Base Protocol’s oracle network is, the more resilient it will be against fraud and single point of failure risks; as such, the team plans to onboard third-party node operators in the future.
Regardless of how the data is sourced, there will frequently be a small discrepancy between the cmc used for BASE and the data that appears on any individual cryptocurrency data aggregator. To allay concerns, users will be able to consult the BASE dashboard surfacing all of the underlying data used to calculate the median market cap, and by extension, expansions and contractions to the BASE token supply.
Q5- How does Base protocol generate revenue from its technology to sustain the Project over long term ?
Ans: We actually do this through a replenishing dev pool. Essentially we create an extra 10% of each rebase, and use those tokens to supply rewards for our staking platform, and to provide future funds for the company,
So, if we are doing a 10% rebase, we will actually do an 11% rebase, and use that extra 1% for the things mentioned above.
Our staking platform for provide liquidity on Uniswap, and strong APY rewards for people who staek BASE. This staking platform is called the BASE cascade.
Q6. When would there be a public sale for the eager investors? When is the likely TGE?
Ans: The presale is live now, but only via application on our website. You can sign up to the presale now, and we will be hosting a lottery system so that everyone has a chance. We are a couple million $ oversubscribed already, so we felt this was the most fair way to allow everyone a chance.
The TGE will likely be on Nov 9th.
Q7- Is there any safety mechanism that prevent from overminting , hacking ? & is smart contract has been audited ?
Ans: The smart contract is currently by audited, by the highly esteemed audit firm, Halborn.
Round 2 — Questions Asked on Twitter & Telegram For Base Protocol
Q1: By @Clarasaktii ( Twitter) - How often does the overflow occur in Base Protocol? Only when the total market cap goes out of "normal"? Or does it occur every certain period of time?
Ans: We track changes in the marketcap every .5% change. Rebases occur once every 24 hours.
Q2: By @Al_zi30 ( Twitter) - Recently BASEprotocol has many partnerships with very interesting projects, Why choose a partnership with DUCKDAO? Is this part of the Base Protocol Strategy to attract users? and What do you want to build together?
Ans: One of the main reasons we chose DuckDao was because of their enthusiastic community, and the partnerships they have in the space. We believe that they can help us in achieving our goals for the Base Protocol.
Q3 : By @thoatuy2507 (Telegram) -As far as I know, BTC is the pioneering big cradle for spectacular developments. Bear markets and bull markets are always fighting each other, so will $BASE swing at times? What and where to make $BASE solid?
Ans: Base can actually trade and have swings just like any token, but with BASE you want to pay more attention to the marketcap, than the price.
The most common misconception is that BASE price is perfectly pegged to the total crypto market cap, so BASE can only grow as fast or slow as the total crypto market. This is our goal in the end, yes.
But early on, new adoption can disrupt this peg so BASE grows at a much faster rate than crypto market cap. This would be highly rewarding for the earliest adopters, just like with any new small cap project.
Once adoption slows down, BASE price will stabilize on the peg. This is when BASE performance will slow down and correlate more to the pace of the crypto market.
Q4: By @ndbetting( Telegram ) - You’ve a product called "BASE Cascade" which should further incentivize the liquidity providers besides transaction fee collecting from Uniswap. How does the rewarding mechanism work with the Cascade? How often do the rewards pools replenish?
Ans: You'll be able to stake straight through Uniswap, and get bonus rewards through the BASE Cascade. As long as you're staking your Uniswap LP tokens in the BASE Cascade, you'll get a share of the Cascade rewards pool.
The BASE Cascade rewards pool is perpetually funded by the network at rebases. These funding issuances are called SPLASHES.
When there is a supply expansion, an extra 8% of that expansion is minted – these tokens are splashed
into the Cascade rewards pool.
For example, if there is a 10% expansion, 0.8% extra is minted and goes to the Cascade.
When there is a supply contraction, 10% of the contraction doesn’t get destroyed – these tokens are
splashed into the Cascade rewards pool.
For example, if there is a 10% contraction, 1% is exempted and goes to the Cascade.
This is how the Cascade sustains itself through the course of adoption. It encourages staking during “bullish
periods” of supply expansion and further encourages staking during “bearish periods” of supply contraction.
Q5: By @tsafik( Telegram ) - You recently partnered with Chainlink to receive the price oracles for the total market cap. They surely are a ”long-term player” within the space but what made you choose Chainlink over for example DIA or BAND Protocol?
Ans: Our engineering team has been watching Chainlink closely for months. In truth, we haven’t found another provider in the space that comes close to the level of decentralization, customer service, and blockchain agnosticism that Chainlink is capable of providing today. When it came time to start developing the architecture for our project, we were already sold on implementing a Chainlink oracle integration. Because of this long-held sentiment, our engineers had been consuming the Chainlink documentation and Youtube tutorials for some time. As a result, we were quickly able to set up a node of our own that is still aggregating market cap data from 11 different market cap APIs and relaying the data to our own FluxAggregator.sol smart contract to this day.
Q6: @tsumannis (Telegram) - Do you plan to expand your product selection by offering for example indexes for top 50 tokens or top 100 tokens? Or just for the DeFi or NFT tokens for example?
Ans: For right now we are focusing on BASE, to ensure that the premise of the idea is executed properly. As we have the core technology behind BASE ironed out to perfectly function, then we 100% plan to have further "fund" tokens in the future. That is the purpose behind the protocol, it is to create a network of fund based rebasing tokens.
Round 3 — Open Telegram Chat questions
Q1. By @xcobarxx — Base Governance Protocol is scheduled to be established this quarter. What stage of the governance are you? Which governance model and mechanism will be adopted to create a community governed, transparent and decentralized ecosystem?
Ans: We will have community governance active very early in the life of the BASE Protocol. We will work with the community to shape the rebasing parameters for the token in order to ensure we are achieveing Base goals.
Q2. By @bluefacebaby07 — As Staking is Becoming Popular, How can Anyone stake BASE Coin? & What benefits they will get?
Ans: This is done through the cascade I mentioned earlier. It is a liquidity staking portal that we have developed. The key to the cascade is that it will have replenishing rewards
Q3: By @Scoopy99 — To stabilise $base price, you have your own mechanism which is called ‘Base Protocol Hypothesis’. Can you tell us briefly about this as to what assumption it is based and how it will be effective?
Ans: The Formative Period vs. the Final State -
BASE will act as a crypto index once it has achieved a stable price peg to the crypto market cap.
However, this price peg will NOT be stable in the beginning. That is because new adoption for BASE will cause bullish disruption on the price peg.
This is the “Formative Period” dynamic. In this formative period, as new users buy and adopt BASE, the growth rate for BASE will probably exceed the growth rate of crypto market cap. This means that for early adopters, BASE is more speculative than it is stable. During the formative period, holders are speculating more on BASE adoption than they are on the crypto market peg.
However, once BASE reaches an adequate threshold of visibility and adoption slows down, we can expect its market price to stabilize on the peg. Once this is achieved, holders will be able to use BASE to speculate on crypto market cap, and not so much on BASE itself. This is the “Final State.”
In the formative period, buying BASE is a bet on future adoption of BASE.
In the final state, buying BASE is a bet on future adoption of the crypto industry.
Special Giveaway By DYLANBASE — We would like to host a quick contest for all the users. Can we do that?
HunterX — Yeah.. Sure we can .
Dylanbase — $30 in BASE to the a random user who fills out the presale lottery application below. This does not require you purchase BASE, just makes you eligible for the lottery!
Make sure to put your telegram username in the "Where did you hear about us" section.
Make sure to join the BASE lottery: baseprotocol.org/presale
I will randomly choose a winner in 3 minutes, so make sure to get entries submitted
Dylanbase — And the winner is: @chelyabinsk_crypto
Closing Remarks :
HunterX - Thanks @BaseDylanOfficial for the in depth AMA.
Dylanbase - Alright guys, I think that is it for me. We enjoyed this AMA, and make sure to check out the links below:
Important Links :
- Baseprotocol website : baseprotocol.org
- Twitter: https://twitter.com/BaseProtocol
- Telegram Chat : t.me/baseprotocol
- Spykefast TG: https://t.me/spykefastofficial
Contact Spykefast Group (TG Members — @realsch & @Gem_Flair) for promotions and AMA!!
