Introducing : Binance Agile Set Dollar
A fair and decentralized currency for equal opportunity
A new beginning algorithmic stable coins; a superior decentralized currency, not just for the inner circle, but for everyone.
The Ethereum network has long been crowned king. The building of it’s extensive ecosystem over the last 6 years has allowed it to reign supreme since it’s debut in 2015. However, the sheer enormity of the ecosystem, and the now outdated tech, has become cumbersome to use and a hinderance for many who trade. Unpredictable and extortionate gas fees have created a system in which only the elite can participate. This essentially closes the market to many new traders; if you can’t fork out ~$50 per transaction then you can’t trade with the big dogs. The promise of ETH 2.0 has long been on the horizon and the longer we wait the more it begins to feel like a pipedream.
Over the course of the last 3 months we have seen the Ethereum network fees skyrocket. The average transaction fee costs ~$10 and on some days have been upwards of $50. If you’re a new trader working with anything less than $500 per transaction this works out as at least 10% of your trade.
As cryptocurrency builds in popularity and becomes more functional in real world use-cases we will see more new traders enter the market. Therefore, we can expect to see gas fees continue to rise. At some point we must ask ourselves; “Are Ethereum network fees truly sustainable?”
Binance Smart Chain, created by CZ (the founder of Binance), is an EVM-compatible blockchain designed to be a high throughput and flexible alternative to ETH. Here, developers can easily transfer their existing projects over from the Ethereum network.
The average trade on this network costs around 49x less and also allows for lightning fast confirmation on the blockchain. This poses undeniable incentive for traders to move towards BSC. Not only are the transaction fee’s regular and predictable, but on days where ETH gas fees are upwards of $50, the BSC network trades work out around 500x more affordable.
Source: https://bitquery.io/blog/ethereum-bsc-dex
BASD — Binance Agile et Dollar
BASD is as an algorithmic stable coin pegged to BUSD. It’s creation was inspired by the Empty Set Squad and utilizes the metrics from Dynamic Set Dollar with some alterations to the epoch length, coupon expiry and epoch advance rewards.
The project is designed to be an agile reserve for the growing BSC DeFi ecosystem and a decentralized alternative to BUSD.
Why have the DSD metrics been altered for BASD:
The ESD metrics were initially worked on and improved for the DSD model and similarly; the BASD team have made further improvements to these metrics.
The epoch time has been reduced to 1 hour, the coupon expiry to 15 days and the epoch advance reward has been reduced. Utilizing the Binance Smart Chain has allowed us to lower the reward from 50 native tokens to just 1.5 BASD due to the transaction costing as little a $0.30 to run.
Let’s take a look at the epoch advance and it’s significance:
The epoch advance exists in order to reward users for advancing the epoch and distributing BASD to the DAO and LPs.
Throughout the duration of DSD’s expansion phase the epoch advance was set at 50 DSD and the average price of DSD during the first week was ~55 USD.
Calculation: DSD epoch advance
- 7 days * 12 epoch per day = 84 epoch
- (84 epoch * 50 DSD) * 55 USD = $230,000
Calculation: BASD epoch advance (based on the same USD value over the first week as DSD)
- 7 days * 24 epoch = 168 epoch
- (168 epoch * 1.5 BASD) * 55 USD = $13,860
If BASD is set to follow the same price path as DSD’s first week of expansion; the epoch advance caller will be awarded approx. 210,000 USD less in rewards. This a significant improvement on the original model and in turn ensures that less rewards are dumped on the market. Furthermore it allows for more liquidity in the pool for BASD and promises a fairer distribution model.
Decentralization
The concept of ‘decentralization’ is often presented to investors as a way of marketing a specific token or project. Some examples include “no pre-mine”, “no pre-sale”, or “no team tokens” as a way to create a fair and decentralized launch. This is often not the case…
When you consider how many projects attempt to run “stealth launches” under the guise of equality and fair launch; only to list with minimal liquidity and visibility (to ensure unfair distribution of tokens), it seems that ‘decentralization’ is merely a marketing buzz word.
The inner circle can hoard the supply without any requirement to be transparent in how they do it, which effectively centralizes the currency and defeats the entire purpose.
How will BASD solve this:
The BASD team will be holding a small pre sale capped at 1320 BNB (~$60,000 USD) with a max cap per wallet of 11 BNB (~$500). 91.7% of these funds will be provided into the PancakeSwap liquidity pool at launch.
This launch tactic will secure initial liquidity and ensure that whales cannot buy excessive amounts upon listing. This also allows for even token distribution and aims to provide ~120 wallets with BASD for holding at launch.
BASD DAO
Since the creation of ESD, many have tried to fork something similar, but failing in effort and long-term sustainability. The BASD team will initially launch with some variation to the DSD mechanics, but with a collection of additional incentives in the works to ensure long term success and functionality of the BASD token.
Additionally, a BASD DAO exists with the intention of bringing together some of the most forward thinking minds in the DeFi space to share and challenge ideas on sustainable improvements to the project.
Short term:
Initial funding will consist of 8.3% of the BASD pre-sale funds, which will be allocated to the DAO for short term developments, partnerships and marketing. If hard cap is reached this will total 5000 BUSD.
Long term:
The BASD team invites the community to contribute ideas to promote the ongoing success of the token; all selected ideas will be voted on by the DAO. If you have coding, marketing, finance or general crypto experience, then please sign up below :
BASD DAO contribution form: https://forms.gle/a1eeT3j9aJSAP4CK7
BASD will eventually become a fully community run project. However, initial contributions most in line with the existing project initiative will be selected by the team and voted on by the DAO. In future the DAO will control the entire project.
Inclusion
We previously discussed the elitist culture developing in the Ethereum network as a direct result of the high gas fees. To recap; this means that new traders struggle to get a foot on the market, as they often cannot afford the extortionate gas fees required to trade on the ETH network.
Farming and algorithmic stable coin protocols present the largest barrier to new traders, due to the number of steps/trades required to enter and exit the DApp.
The total number of steps required to enter and exit (as a liquidity provider) for most algorithmic stable coins is approximately 10.
If the average transaction fee on Ethereum is~$4.5 (and on many days reaching as high at $5), this process can cost anywhere between $50-$500. As a result, many investors either cannot afford to participate, are trapped without the funds to retrieve their tokens, or end up selling at a loss.
Whereas, on BSC the entire process would cost just~$1. Thus promoting inclusion for all traders and in turn further decentralizing and strengthening the protocol.
Conclusion:
BSC provides a solid foundation of scalable tech for developers, is backed by one of cryptos greatest minds (CZ) and has already engaged an enormous audience who are desperate for lower gas fees. It goes without saying that we can expect to see BSC set on an enormous growth curve for 2021.
BUSD has already experienced significate expansion over the past 12+ months. The market cap of BUSD is approximately 1.1 billion USD, up from 38 million in 2019. But, investors may be hesitant to hold BUSD as the only current benefit is market stability.
BASD aims to solve this by creating a long term stable asset which simultaneously offer investors the chance to increase their net worth in line with the growth of the protocol. This is achieved via contribution to the DAO and/or liquidity pool.
Shoutout to Empty Set Squad for the inspiration and continuing to push DeFi innovation to it’s limits.
Github: https://github.com/basdollar
Website: https://basd.finance
Telegram chat: https://t.me/BASDollar
Telegram announcements: https://t.me/BASDAnnouncements
Twitter: https://twitter.com/AgileSetDollar
