Introducing the Polbase Cash Protocol
History of Basis
Basis is an algorithmic stablecoin protocol where the money supply is dynamically adjusted to meet changes in money demand.
- When demand is rising, the blockchain will create more Basis Dollar. The expanded supply is designed to bring the Basis price back down.
- When demand is falling, the blockchain will buy back Basis Dollar. The contracted supply is designed to restore Basis price.
- The Basis protocol is designed to expand and contract supply similarly to the way central banks buy and sell fiscal debt to stabilize purchasing power. For this reason, we refer to Basis Dollar as having an algorithmic central bank.
Read the Basis Whitepaper for more details into the protocol.
Polbase Cash Protocol
Polbase Cash is a new revolutionary algorithmic stablecoin inspired from the Basis Cash and Basis protocol, which are designed to keep price stable by algorithmically adjusting supply. However, the Polbase Cash protocol was created with technical improvements and modifications from the originals to adapt to the ever-changing market. Thus, making it simpler, easier, more practical and highly secured. As a fork of Basis Cash which was audited by CertiK, Polbase Cash is consistent with the audit result: CertiK’s report
The protocol will be developed with a Three-token model:
· Polbase Cash (PBC): the USD pegged stable coin with a target price of $1. Its supply may expand or contract to maintain the peg.
· Polbase Shares (PBS): as the “share” means, PBS holders will share the new minted supply of the stable coin when price goes above the peg to match the market demand.
· Polbase Bonds (PBB): bonds are auctioned off with discounted price when price falls below the peg, which then can be exchanged for PBC with the 1:1 ratio when blockchain mints new stable coins (price over the peg).
To receive any newly created supply of PBC, PBS holders must stake their PBS in the Polbase Pool. Only PBS that is staked can receive the newly minted PBC.
Some improvements
There is no doubt that the complexity and the mechanism of algorithmic stablecoins are what make them great assets for the ever-changing crypto market. However, a highly complicated technology doesn’t necessarily make it a success. In fact, we see a few limitations in this newly technology such as real use-case, competitors and scalability. USD pegged stablecoins like USDT/USDC have always been a more popular choice for crypto users. Therefore, to compete with such competitive market, Polbase team is ready to step up the game and make some innovative improvements to both technology and business model.
· Develop a full-stack DeFi platform involving YF, Dapps, DAO, NFT/Gaming. Polbase Share will be the main fuel to power the constant-growing ecosystem.
· A complete community-driven project with zero pre-mined tokens
· Partnership with a notable provider for transparent and open-source Oracle, preventing price manipulation.
· Polbase Bonds will have no expiration and last for life-time
· The epoch duration for minting new supply is reduced to 12 hours.
· The protocol caps the newly minted PBC in the case of expansion to a maximum of 10% of the total supply during each epoch. Similarly, the debt issued is capped at 20% supply (maximum Bond generated for each contraction).
· Re-model of token metrics that favors long-term development.
· Polbase-chain’s development will kick start after the launch.
Token metrics
There are no pre-minted tokens allocated to the team/advisors/VCs or token sale. Supply is strictly distributed to the community via staking stable assets. This distribution model is designed to reward users that contribute to the protocol.
Polbase Cash
PBC will be distributed to users who stake into PolBase Bank with the following assets: USDT, USDC, DAI. More assets (BAC, SAC, DSD) will be added to the bank as the development proceeds forward.
Total Supply: 50,000 PBC
Distribution schedule: PBC will be distributed evenly amongst 3 PolBase Banks over the course of 5 days in a non-linear distribution.
· First day: 20,000 PBC/day
· Second day: 15,000 PBC/day
· Third day: 10,000 PBC/day
· Fourth day: 3,000 PBC/day
· Last day: 2,000 PBC/day
The PolBase Pools have no risk for the funds as it is targeting $1 peg. This distribution model will create incentives for users who contribute to the protocol early.
To participate in any PolBase Banks, please visit:
Polbase Share
Zero PBS will be pre-mined to the team but there will be a 10% fee per mined token that goes towards project development. The fund will be stored in a wallet that is published to the users. Fees are only collected as tokens are mined.
Unlike other projects, the team will hand over the decision of how and where to spend the fund via DAO’s proposals. Polbase is committed to promote a complete community-driven stablecoin, as such every decision we make will be voted upon by PBS holders. As the project moving forward, the weight of PBS will increase exponentially in term of value and authority. To demonstrate this, we will hold the first DAO’s proposal one week after PBS launches.
To earn PBS, users need to contribute to the liquidity pools on Uniswap, the deposit will be made available after PBC launches:
· Total supply: 400,000 PBS will be mined.
· PBC-USDT LP — 50/50: This pool will distribute 250,000 PBS linearly over one year (~685 PBS/day)
· PBS-USDT LP — 30/70: This pool will distribute 150,000 PBS linearly over one year (~411 PBS/day)
Polbase Bond
The Polbase Bonds are available for purchased and redeemed on the “Bonds” tab under a set of conditions:
1/ Purchase: For the users to be able to buy Polbase Bonds, the price of one Polbase Cash must drop below the peg price of $1. The exact price will be determined by the market.
2/ Redeem: When a user buys Polbase Bonds, the Polbase Cash used to buy the Bonds is burned and removed out of circulation, lowering the total supply of Polbase Cash and hence pushing it towards the target peg price of $1.
Once a user has Polbase Bonds, he cannot redeem them for Polbase Cash unless the Polbase Cash is trading above $1.
Once the price of a Polbase Cash is above $1 (expansion), users may redeem their Polbase Bonds, effectively burning them out of circulation, for an equal amount of Polbase Cash which are newly minted into the circulation and hence again push the price towards the targeted peg price of $1.
For more information, visit:
Website: http://polbase.cash/
Telegram: https://t.me/PolbaseOfficial
Channel: https://t.me/Polbase_ANN
Twitter: https://twitter.com/PolbaseCash
Medium: https://medium.com/@polbase.cash
Github: Updating
Audit is coming.
