Most crypto enthusiasts are always faced with the challenge of choosing the digital assets they should buy. While some are bearish on several blockchain projects, many are bullish on others. But there is one area where we all agree and that’s the fact that the crypto industry will eventually gain mass adoption and long-term growth.
So, what has the Base Protocol got to do with this? It’s a platform that makes it possible for traders to speculate on the entire industry with a specific token. This is undoubtedly the world’s first tokenized digital currency market tracker and the only one in existence. When users hold BASE tokens, they get exposure to the performance of the cryptocurrency market.
Why Base Protocol?
A cryptocurrency industry ETF would always be extremely valuable for investors. However, creating such a product through traditional means is very difficult. In fact, managing portfolio ownership of over 5,000 assets would be nearly impossible.
Have you considered how portfolio managers can weigh ownership of every single asset as market cap dominance changes? How would a portfolio manager account for assets that are just entering or exiting the market? Who will handle all the associated transaction and custodial fees? Also, in many countries, several legal limitations tend to hinder the formation of such kind of instruments.
If such an instrument is eventually formed, it would be highly centralized and suffer the demerits of a centralized system.
The Base Protocol has managed to overcome all these challenges by pegging a price to the total market cap of all cryptos. So, BASE offers its holders the same function as a traditional industry ETF while eliminating the centralized difficulties that make it impossible for such an ETF to be created.
The team behind BASE has observed that there are a good number of people who are interested in investing in digital currencies. However, they lack adequate knowledge of how the crypto market works.
For the average new user, the overview for every single digital currency is often hard to understand but BASE is offering investors the chance to invest in all digital assets at the same time. This implies that the Base Protocol may drive new adoption of cryptos and blockchain technology.
Recently, more institutional investors have been introducing digital currency investments to their portfolios. But most of them invest at a high level and cover multiple industries with their crypto collection comprising just Bitcoin and a few “blue chip” crypto assets. This is different with BASE because when these institutions hold BASE, they gain exposure to the entire crypto industry.
We can see BASE as a transitory “safe haven” position between cryptocurrency transactions. In a bid to eliminate risk exposure, some traders can trade into a “blue chip” crypto or trade into a stablecoin. But trading into BASE offers investors an alternative that simply maintains exposure to all digital assets instead of one. While this may be riskier than trading into a blue chip, it may actually serve as a hedge against some unforeseen/isolated events in some instances. By trading into BASE, investors can mitigate the inherent risk of having just one crypto while absorbing the potential gains of many other coins.
This is undoubtedly a more diversified alternative compared to the few industries they may add to their portfolio. So, just as Bitcoin is seen as a household name for digital currencies, the Base Protocol is working toward being the household name for general digital currency investing. The vision of BASE is to be the primary channel of investment for both existing and new crypto traders as well as institutional investors.
You should ask yourself right now: how many exciting cryptocurrency journeys have you missed so far simply because you don’t want to be exposed to the projects? Did you miss buying Ethereum in 2015, Bitcoin in 2009 and even Chainlink in 2017?
Well, one way to ensure that you don’t completely miss out on all the projects in the crypto space is simply to hold BASE. Once you hold BASE, then you hold everything and you don’t have to worry about missing the chance to benefit from the increase in the value of some crypto projects. Isn’t this an amazing project?
Base protocol was developed by a group of engineers, programmers and entrepreneurs. The native token of the Base Protocol is BASE and its price is pegged to the total market capitalization of all the digital currencies in existence at a ratio of 1:1 trillion.
It is a synthetic asset that was created so that it would reflect the “price” of all digital currencies. BASE leverages a mechanism known as elastic supply protocol and rebasing protocol to maintain its market price so the supply can be increased or decreased when needed.
Participating in the BASE Cascade
The primary goal of the Cascade is to reward those holding BASE tokens for contributing liquidity to the Uniswap liquidity pool. If you would like to participate, then the first thing you need to do is deposit BASE and ETH into the Uniswap liquidity pool. As soon as your tokens are deposited, you will get a percentage of the transaction fees obtained from the pool’s trading activity.
Bear in mind that what you get will be proportionate to the network percentage you initially deposited. Your Uniswap balance will also be affected by supply rebases. You will be issued LP tokens after depositing BASE and ETH into Uniswap and they will serve as proof that you actually deposited your BASE and ETH in the pool. Now you can stake your LP tokens to enjoy extra rewards via the Cascade. Here is a summary of how it works:
· First, you deposit BASE and ETH into the Uniswap liquidity pool and get LP tokens in return
· Then visit BASE Cascade option on the dashboard and deposit LP tokens into the Cascade
· Track your rewards multiplier and balance
Your reward multiplier starts at 1x when you stake in the Cascade for the first time and the multiplier will reach 2x after 30 days. The multiplier will eventually hit 3x after 60 days and 3x is the ceiling for the multiplier. Participants are free to deposit as little or as much as they want to participate in the Cascade and withdraw their funds whenever they want. However, if you have been staking for 43 days and decide to withdraw before 60 days, you will miss out on the chance to get to the 3x multiplier over the next 17 days.
Who is BASE for?
As earlier mentioned, BASE acts as a one-stop trading instrument that enables holders to speculate on not just one or two cryptocurrencies but on the entire cryptocurrency industry at the same time. This makes it a perfect choice for newbies interested in getting involved with crypto investing but are not sure of the specific assets they should buy. Also, institutional investors and crypto traders who want to hedge or diversify their investments will find BASE very useful.
It’s crucial to get the right information before making any investment in the crypto market. If you would like to learn more about over a hundred different digital currencies, then get a copy of “The Digital World of Crypto Riches.” The book contains a summary of top-performing digital assets, their use cases, achievements and challenges.
