Bitaigen Research From a technical perspective, we dissect Based Money, an experimental Ethereum‑based DeFi game that leverages Ampleforth’s elastic‑supply mechanism to let users earn from token volatility. The article explains the core gameplay, liquidity‑pool design, and potential risks, helping readers assess the project’s value. Please continue reading.
Detailed Overview of the Based Money Project
Based Money is an experimental DeFi game built on Ethereum that uses Ampleforth’s supply‑adjustment mechanism, allowing users to earn from token‑supply fluctuations.
What Is Based Money?
According to the development team, Based Money is a DeFi experiment whose core mechanic is a “game of chicken.” It runs on the Ethereum mainnet and follows the Ampleforth protocol’s elastic‑supply logic—adjusting only the total token supply without directly manipulating market price. Through this re‑pricing mechanism, users can treat supply swings as a tool for generating returns.
The project launched in the summer of 2020 amid the “Weird DeFi” hype, and within a month its market cap surpassed USD 59 million, with an average daily token trading volume of roughly USD 3 million.
Summary of Main Features
Based Money offers two liquidity pools (Pools), both rewarding participants who provide collateral:
| Pool Type | Required LP Token | Initial Cap | Total Supply | Halving Interval |
|---|---|---|---|---|
| Pool 0 | Curve **sUSDv2** LP | 12,000 tokens | 25,000 **BASED** | Daily halving |
| Pool 1 | **UsUSDBASED‑V2** LP | — | 75,000 **BASED** | 72‑hour halving |
- Pool 0: Users must stake Curve sUSDv2 LP tokens. The system caps the BASED supply at 12,000 tokens to control initial liquidity. The total supply is 25,000 BASED, and it automatically halves once per day.
- Pool 1: The staking method is the same, but the LP token is UsUSDBASED‑V2. This LP can be obtained by adding BASED or sUSD to the BASED/sUSD Uniswap pool. The total supply is 75,000 BASED, and the halving interval is 72 hours.
When 97 % of the total token supply is occupied, the protocol’s re‑pricing algorithm is triggered. The trigger threshold is a 5 % price deviation:
- If the price gap between BASED and sUSD exceeds 5 %, the BASED supply is increased.
- If the gap falls below 5 %, the supply is decreased.
This mechanism ensures that BASED holders retain the same proportional ownership after a supply change. Holders are free to buy or sell the token until the next re‑pricing event.
The supply‑adjustment process takes ten days to complete; if the price moves again during that window, the protocol recalculates based on the latest price. The minimum interval between two re‑pricing events is 24 hours.
The first re‑pricing occurred on September 6, 2020. The development team states that the smart‑contract’s private key has been burned, guaranteeing fully automated execution—no individual can alter the game rules.
Native Token
BASED is the project’s native token, pegged at 1 BASED = 1 sUSD. The protocol performs a supply adjustment every 24 hours to maintain the 1:1 price link with sUSD.
Additional Information
- Within a few days of launch, the sUSD‑BASED pair ranked among the top three liquidity pools on Uniswap.
- The founding team introduced a community hub called Moonbase, intended to provide a fair launch environment for BASED holders. Users who invest BASED in this space receive mbBASED rewards, representing their share of the contract.
Thank you for reading the analysis from Q DeFi Rating and the NOAH ARK team! This article was co‑written by Alexey Usanov and Anton Dziatkovskiy, co‑founder and CEO of Platinum Software Development.
Feel free to visit our official website and B‑station channel for more high‑quality DeFi project updates and to stay informed about the latest developments in the crypto industry. With technical support from Platinum Software Development, you can also build your own Uniswap‑style project or conduct smart‑contract audits.
References
- https://based.money
- https://decrypt.co/42067/based-money-defis-game-of-chicken
- https://messari.io/asset/based-money/profile
- https://www.coindesk.com/based-money-moonbase-defi-fair-launch-movement
- https://medium.com/@rkmjcharpb/a-defi-stream-of-consciousness-and-the-opportunity-for-trustless-games-a4f3b34cf0f0
The above constitutes a comprehensive introduction to the Based Money project. For further reading, follow other articles from Bitaigen (比特根).
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