BASE and Base Protocol - Synthetic Rebase, Cascade Rewards & more

Base & Base Protocol
The Base Protocol (BASE) is a synthetic crypto asset that derives its price from the total market cap of all cryptocurrencies. BASE exists to maintain a market rate that is stably pegged to its underlying asset the crypto industry. The Base Protocol acts as a one-stop trading instrument which allows holders to speculate on all cryptocurrencies simultaneously, rather than just one or a select portfolio of multiple.

Synthetic Rebase
Synthetic rebase tokens can be created out of thin air. Unlike a derivative, it acts a synthetic asset before monetary value is attached to it. This nontraditional class of synthetics hasn't presented any valuable use-case in financial markets. However, it inspires unique possibilities in an emerging decentralized finance space. In a bearish market, DOL's market cap locks in its drop to $50,000. After rebase occurs, the market would sell DOL, driving its price back up to $1. If this happens, the net result is that DOL price stays pegged. This lag creates unique trading opportunities, but also creates problems if the market doesn't act on them.

Rebases
The Base Protocol is a price fixing protocol, but it cannot fix price directly. It can only influence price through supply rebases. These rebases should incentivize the market to correct BASEs price to its target equilibrium price. But as mentioned, this may not work as intended, especially early on. There is basically a stability spectrum, or slider for how BASEs programming can be approached. The Base Protocol starts with an instantaneous rebase period, where 100% of rebases will occur at once. Lower supply smoothing periods mean sharper expansion/contraction events, while greater periods mean slower, more stable events.

Cascade Rewards
The purpose of the BASE Cascade is to reward BASE holder for contributing liquidity to the Uniswap liquidity pool. Cascade rewards pool is perpetually funded by the network at rebases. When there is a supply expansion, an extra 8% of that expansion is minted these tokens are deposited into the Cascade rewards pool. At supply expansions, an additional mint percentage goes to support the Base Protocol Foundation (2%)

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