Nowadays more and more people and big companies are getting to learn about and investing in cryptocurrencies. According to the coin market cap website, there are 9,024 crypto coins and tokens are available today to acquire all together in 37,061 markets. It is hardly ever possible to know all of them and keep track of all the digital assets on the market. If you are experienced in cryptocurrency in general, then I would say you might be aware 0.2% - 0.3% of the coins and tokens of the entire market. It can be very challenging to know, witch assets we want to invest in. It requires a lot of research and study of the company or project behind the currency. To eliminate the hassle especially if you are new to the crypto space, rebasing by using Base Protocol could be a good solution.
Base Protocol / Synthetic Asset
Base protocol is a decentralized financial application. BASE is their native token on the Ethereum blockchain. Its price is pegged to the entire cryptocurrency market capitalization at a ratio of 1 : 1 trillion. It means, that the total market cap as of writing this article is $1,857,663,045,636 therefore the price of the BASE token is $1.81. Instead of buying numerous coins to speculate on their prices one at a time, BASE makes it possible for investors to purchase one single token and gain possible profit as the value of the market cap increases. Look at it as an index fund on the stock market.
Elastic Supply
BASE is a synthetic asset, which built on an elastic supply protocol. It operates to reflect the value of all cryptocurrencies on the entire market. BASE determines its target price from the whole market cap, which is in the current case is $1.81. When BASE's target price equals to the market price, then BASE is in a state of equilibrium. When the market price does not equal with the target price, then BASE is in a state of disruption.
Rebasing
Rebasing happens, when BASE coordinates its price with all of its underlying asset. To achieve this, the supply of BASE will be adjusted to match the target price with the market price.
Cascade
Cascade basically similar to yield farming. BASE can be purchased from the UniSwap liquidity pool. When staking BASE, liquidity needs to be provided. The more liquidity is provided and the longer the staking period is, the higher reward will be paid out to the investor from the Cascade.
