BaseX - introduction - Decentralized Finance News

BaseX – introduction. Discover the characteristics and objectives of this ecosystem with direct access to their website.

BaseX harnesses the scalability of Base Chain, Coinbase’s Layer 2 network built on Ethereum, to reduce gas costs and enhance throughput. By leveraging the capabilities of UniSwap V3 CLMM and collaborating with our liquidity management partners, you can swap tokens with minimal slippage and increased efficiency.

BaseX – introduction

BaseX leverages the groundwork laid by Thena, a decentralized exchange (DEX) designed to optimize liquidity provider benefits and reduce trading fees and slippage. By alleviating protocols from the need to inflate native tokens, BaseX fosters mutual growth within the Base Chain ecosystem.

Initially built by Andre Cronje on Fantom, Solidly serves as an automated market maker (AMM) and liquidity layer offering low-cost, nearly slippage-free transactions for both correlated and uncorrelated tokens. However, many Solidly fork projects, including Solidly itself, struggled with sustainability. BaseX has enhanced the Solidly codebase to ensure the protocol operates effectively. This allows veBXT voters to fairly compensate liquidity providers for impermanent loss, aligning with BaseX’s core objectives of value accumulation for the BaseX DAO, ICO participants, and BXT holders.

BaseX’s mission focuses on generating value and supporting partner protocols on the Base chain by addressing liquidity bootstrapping challenges. We provide established tokens with sustainable liquidity incentives, fostering growth and innovation in the DeFi space on Base. Our commitment to decentralization, transparency, and community-driven governance underscores our dedication to refining and expanding our ecosystem.

BaseX stands as a cornerstone of decentralized finance (DeFi), facilitating collaboration and unleashing the full potential of DeFi on Base. We are ushering in a new era of DeFi with safety and fairness at its core, paving the way for a vibrant and cooperative financial future.

Overview

BaseX ve(3,3) vs Traditional Solidly ve(3,3) vs Traditional Liquidity Mining

BaseX implements an enhanced ve(3,3) mechanism inspired by Solidly, integrating two crucial DeFi principles: Vote-Escrow, inspired by Curve, which promotes long-term token holding, and the (3,3) game theory from Olympus DAO, which focuses on staking, rebasing, and bonding. This approach is more effective than traditional liquidity mining protocols.

In the BaseX ecosystem, native ve(3,3) rebase tokens serve as rewards for activities that drive the platform’s success, such as providing liquidity and locking tokens in bonding pools for the long term. Liquidity providers earn BXT (BaseX Token) emissions, while veBXT holders benefit from protocol fees, bribes, and rebases.

Many Solidly forks encountered issues with retaining value for native token bonders. To address this, BaseX separates governance power and the protocol-owned treasury into a distinct token, BDT (BaseX DAO Token), which can be acquired by staking BXT. This innovative strategy ensures a robust and inclusive ecosystem for all participants.

Vision

To realize our vision, we believe in the following principles:

Minimal Slippage: Trades should experience minimal slippage. This can be achieved by using concentrated liquidity (CL) for most pairs and collaborating with V3 liquidity management protocols.
Low Transaction Fees/Gas Efficiency: To accommodate small trade volumes and maintain competitive exchange rates, transaction fees must be low. Deploying on the Base chain itself helps minimize gas costs.
Intuitive UI: The dApp should be user-friendly, providing clear information on APYs, liquidity provider (LP) pairs, and staking pools. This reduces user confusion and encourages greater participation in the DEX.
Shared Ecosystem: A DEX should foster collaboration among ecosystem partners. By promoting a co-build and co-own environment within the Base Ecosystem and implementing a token exchange program, we can strengthen ties between protocols.

BaseX is dedicated to creating a decentralized exchange that addresses common industry challenges, making it a reliable and user-friendly platform for all participants.

Staking:

Earn passive income by staking. BaseX rewards you for locking your BXT tokens for up to two years, giving you voting rights and a share of the trading fees. Your veBXT tokens also receive more BXT as rewards via rebasing. You can also customize the price range of your liquidity, increasing your returns and earning more fees, or provide liquidity by gauge to earn BXT emission.

$BXT – ERC-20 – Utility Token

$BXT is the native utility token of BaseX, providing users with a range of utility functions within the platform, including staking and voting. Users can either earn protocol fees or accrue BaseX DAO tokens by staking their $BXT.