Glossary
Definitions for all key terms and concepts used throughout the Basis ecosystem
Basis Comprehensive Glossary
Core Platform Terms
Basis (BASIS): The native platform utility token of the Basis ecosystem, implemented as a Stable+ token initially paired with USDC. BASIS serves as the primary liquidity pair for all other Basis Tokens launched through the Token Factory and benefits from its own up-only mechanics.
Basis Token: Any token created using the Basis Token Factory, including Stable+, Floor+, and Predict+ variants. These tokens feature dynamic supply through minting/burning mechanisms and are all ERC-20 compatible.
Basis Ecosystem: The self-reinforcing DeFi platform consisting of four interconnected components: Token Launchpad, Predict+ Marketplace, Lending Facility, and Decentralized Exchange (DEX), where success anywhere benefits all participants through strategic fee distribution.
DEX (Decentralized Exchange): Basis's native decentralized exchange serving as the exclusive marketplace for all Basis Tokens, featuring MEV-resistant architecture, internal liquidity mechanisms, and support for up to 10x leverage trading with no liquidation risk for Stable+ tokens.
Token Factory/Token Launchpad: A permissionless, no-code platform allowing anyone to create branded tokens with varying degrees of stability (Floor+ with rising floor price or Stable+ with up-only mechanics) in minutes, requiring only Ethereum gas fees ($1-$5).
Cascading Growth Effect: The ecosystem-wide phenomenon where BASIS appreciation directly increases the value of all tokens paired against it, creating compound benefits even for inactive tokens due to the universal BASIS pairing requirement.
Token Framework Terms
Stable+ Technology
Stable+: Revolutionary "up-only" token framework where smart contracts mathematically guarantee the token price can only increase or maintain value relative to its paired asset, never decrease from any previously achieved level.
Up-Only Mechanism: The proprietary smart contract architecture that makes price decreases algorithmically impossible through strategic fee allocation, token burning on sells, and automatic price support mechanisms.
Mathematical Certainty: The guarantee that Stable+ price protection isn't a promise but programmed impossibility enforced by immutable smart contract code.
Stable+ Applications: Ideal for e-commerce payments, event tickets, corporate tokens, employee rewards, community governance, loyalty programs, and any use case requiring absolute downside protection with growth potential.
Floor+ Technology
Floor+: "Rising floor" token framework featuring 100% liquidity backing at the floor price, allowing normal market volatility and price discovery above a mathematically enforced minimum that only increases over time.
Rising Floor Mechanism: The smart contract feature where transaction fees continuously raise the floor price, creating a one-way ratchet effect upward while allowing dynamic trading above this rising minimum.
100% Liquidity Backing: Unlike traditional meme tokens with ~25% backing, every dollar of Floor+ market cap at the floor price is backed by real, accessible liquidity through smart contract architecture.
Customizable Starting Liquidity: Creators can set initial liquidity from $100 to $10,000, with lower starting amounts enabling higher multiplier potential (up to 250x with $100 start vs 25x with $1,000).
Floor+ Use Cases: Perfect for sustainable community building, ethical fundraising, speculation with safety nets, brand token launches, and projects prioritizing long-term value over quick flips.
Predict+ Technology
Predict+: Event-specific tokens using Stable+ technology that revolutionize prediction markets by offering multiple profit mechanisms beyond traditional binary betting outcomes.
Multi-Utility Design: Predict+ tokens can be: (1) held for price appreciation as event excitement builds, (2) traded on DEX to capture volatility, (3) used as 100% LTV loan collateral, or (4) staked on event outcomes for USDC payouts.
Investment-Grade Prediction Assets: Unlike traditional bet-or-lose models, Predict+ tokens maintain value through Stable+ backing, allowing investors to profit from event hype without gambling on outcomes.
Predict+ Marketplace Terms
Predict+ Marketplace: The world's first decentralized prediction market with stable token technology, where permissionless event creation meets multi-utility tokens that can appreciate but never decrease below their floor price.
Event Creation: Completely permissionless system with zero upfront costs, no deposits, and no approval requirements. AI-powered categorization automatically validates events and filters prohibited content.
Event Creator: Any user who launches a prediction event on the platform at zero cost, earning 20% of all trading fees generated by their event's token in perpetuity.
Event Categories: Unlimited possibilities including sports championships, political elections, cryptocurrency prices, entertainment awards, economic indicators, product launches, weather events, and social media milestones.
Bonding Phase (Events): Optional initial period where creators can purchase tokens or conduct whitelisted presales. No minimum thresholds required - events proceed regardless of bonding amount.
Betting Mechanics:
Currency Options: Bet using either Predict+ tokens or USDC
Dynamic Odds: AMM-style pools adjust odds based on betting volume
Initial Odds: All outcomes begin with equal odds (e.g., 50/50 for binary events)
Share Calculation: System calculates outcome shares based on current pool ratios
Exit Options: Sell shares before resolution to lock profits or cut losses
Resolution System:
Open Resolution: Creator or any community member can propose an outcome
Creator Priority: For time-based events, creators have 15-minute priority window (no bond required)
Community Resolution: Anyone can resolve by posting bond (10x the bounty pool)
Bounty Pool: Accumulated fees (0.5% of transaction volume) paid to successful resolver
Bond Requirement: Resolution bond = Bounty Pool × 10
Bounty Reward: If resolution goes undisputed, resolver receives entire bounty pool
Dispute Process: Outcomes can be challenged within 2-hour window by posting equal bond
Basis Army Voting: Final arbitration for disputed outcomes within 24-48 hours
Army Compensation: Basis Army members split forfeited bonds from losing disputants
Votes Required: Number of Basis Army votes = Bond Amount / $5
Resolution Timeline:
Time-Based Events: Creator has 15 minutes post-expiration, then community can resolve
Non-Time Events: Open for creator or community resolution at any time
Dispute Window: 2 hours for initial challenges
Army Voting Period: 24 hours for time-based, 48 hours for non-time events
Automated Oracles: For Basis-created markets, Chainlink and AI-triggered data feeds provide automated resolution with community fallback options.
Invalid Markets: Basis Army can declare markets invalid when no clear outcome exists, triggering full refunds to all participants with bounty pool distributed to voting Army members.
Fee Structure (Betting):
Transaction Fees: 1.5% on buys, switches, and sells
Distribution: 0.5% to winning pot (accuracy incentive), 0.5% to bounty pool (resolution incentive), 0.5% to house (NFT holders)
No Sell Fee: Bettors holding until resolution avoid the 1.5% sell fee
Payout Mechanics: Winners receive proportional share of losing pools plus accuracy incentive fees, calculated as (User's Winning Shares / Total Winning Shares) × Total Prize Pool, claimed through dApp with no time limits.
Bonding Phase Terms
Bonding Phase: The initial period following any Basis Token creation, lasting until $10,000 real liquidity accumulates, during which early participants earn enhanced perpetual rewards.
Virtual Liquidity: The system's notional establishment of $10,000 trading capability at token creation, enabling immediate trading through bonding curve mechanics before real liquidity accumulates.
Reward Shares: Permanent, transferable entitlements earned by bonding phase participants, generating 3.33% of all future transaction fees for that specific token in perpetuity.
Bonding Curve: The mathematical formula determining token prices during initial distribution, ensuring fair pricing that increases with each purchase.
Early Supporter Benefits:
Better entry prices through bonding curve
Perpetual USDC rewards from transaction fees
No staking or lock-up requirements
Recognition as founding supporters
Creator Participation: Creators can purchase up to $10,000 of their own tokens during bonding, earning reward shares while demonstrating commitment without unfair advantages.
Lending Platform Terms
Lending Facility: Basis's revolutionary loan platform offering unprecedented terms including 100% LTV ratios, zero liquidation risk from price movements, and flexible extension options with cash-out refinancing.
Loan Terms:
Stable+ Collateral: Up to 100% LTV based on current market value
Floor+ Collateral: Up to 100% LTV based on floor price (not market price)
Loan Currency: All loans disbursed in USDC (ERC-20)
Term Length: 10-400 days initially, extendable up to 1000 additional days
Fee Structure (Lending):
Origination Fee: 2.5% one-time fee on loan initiation or extension
Daily Interest: 0.005% per day (typically prepaid for term)
Liquidation Fee: 10% on remaining collateral after loan repayment (only at maturity)
Cash-Out Refinancing: Ability to extend loans and receive additional USDC if collateral has appreciated, calculated as new max loan value minus outstanding balance minus applicable fees.
Loan Stacking: Strategic ability to chain multiple loans by using borrowed USDC to purchase additional tokens as collateral (requires careful fee consideration).
Zero Price Liquidation: The revolutionary feature where loans cannot be liquidated due to collateral price movements, only from non-payment at maturity.
Economic & Fee Distribution Terms
Dynamic Supply Mechanism: Tokens are minted on purchase and burned on sale, creating natural supply elasticity that responds to market demand.
Fee Distribution Model:
DEX Trading Fees (1.5% total):
Token Creator: 20% (0.30%)
Price Support: 16.67% (0.25%)
Bond Phase Participants: 3.33% (0.05%, post-bonding only)
NFT Holders: 43-47% (varies by phase)
NFT Token Pool: 16.67% (0.25%, in Basis tokens)
Loan Fees Distribution:
Collateral Token Price Support: 20%
Token Creator: 24%
Bond Phase Participants: 4%
NFT Holders: 52%
Deflationary Mechanics: Token burns on every sell transaction permanently reduce supply, combined with rising floor prices to create constant upward pressure.
Price Support Allocation: The 16.67% of fees algorithmically directed to reinforce Stable+ prices or raise Floor+ floors, ensuring sustainable token economics.
Multiple Revenue Streams: Creators earn from DEX trading fees (20%), loan origination when their token is collateral (24%), bonding phase rewards, and Predict+ event fees without ever selling tokens.
NFT & Revenue Sharing Terms
Revenue Share NFTs/Share NFTs: Non-fungible tokens granting permanent ownership of platform revenue shares, earning 43-52% of all fees across the entire Basis ecosystem.
Bonding Curve NFT Pricing: Revolutionary pricing model where price = (((total raised)/target raise) × target price) + starting price, beginning at $0.01 and targeting $1.77 at $10M raised.
NFT Holder Benefits:
30% of ALL platform revenue forever
No staking, lock-ups, or maintenance required
Passive income from every transaction
Additional rewards from NFT Token Pool liquidations
Whale Protection: Large NFT purchases naturally increase average price through bonding curve, preventing monopolization while maintaining fairness.
Revenue Sources for NFT Holders:
Trading fees from thousands of tokens
Loan origination and interest fees
Prediction event trading and betting fees
Future product launches and integrations
Launch & Creator Tools Terms
Fair Launch Guarantee: Zero pre-minted tokens, zero team allocations, zero insider advantages - creators must purchase their own tokens through public mechanisms like everyone else.
Liquid Vesting Innovation: Industry-first mechanism where presale investors receive immediate USDC liquidity while tokens remain locked, preventing dumps while providing instant value.
Chef Panel: Pre-launch interface for creators to configure whitelist access, vesting schedules, and launch parameters with full transparency on-chain.
Freeze Token Option: Enables whitelist creation after deployment for controlled distribution phases.
Auto-Vesting: Optional automatic vesting for all bonding phase purchases with customizable methods and time periods.
Ethical Monetization: Creators profit from volume and growth (transaction fees, loans) rather than token dumps, creating sustainable aligned incentives.
Technical Infrastructure Terms
Smart Contract Architecture: Audited, immutable code on Ethereum ensuring transparency, security, and trustless execution of all platform functions.
MEV-Resistant Design: Internal liquidity mechanisms and architectural choices that prevent sandwich attacks, front-running, and other value extraction tactics.
Cross-Chain Compatibility: Planned expansion to multiple blockchains while maintaining consistent economic properties and security guarantees.
On-Chain Transparency: All mechanics, fee distributions, vesting schedules, and token operations fully verifiable on the blockchain.
Security Measures:
Hashlock contract audits
Multi-signature requirements
Emergency pause capabilities
Market Dynamics Terms
Volume Multiplier Effect: How Predict+ dual-utility design generates 5-10x more activity than traditional single-purpose tokens through trading, betting, and lending.
Network Effects: Self-reinforcing growth where more creators → more users → more liquidity → more fees → better returns → more creators.
Total Value Locked (TVL): Aggregate value across all tokens, loans, prediction events, and liquidity positions in the Basis ecosystem.
Addressable Market Expansion: How Predict+ tokens expand participation by 10x by attracting investors who want event exposure without gambling.
Conservative Projections: Based on Polymarket's $3.2B volume, Predict+ could generate $15B+ for major elections through dual-utility mechanics.
Platform Governance Terms
Permissionless System: Anyone can create tokens or events without approval, KYC, or registration, only requiring wallet connection and gas fees for token creation (events have zero costs).
Prohibited Content Filtering: AI-powered systems preventing illegal activities, violence, hate speech, discrimination, and regulatory violations.
Basis Army: NFT holders who serve as final arbiters for disputed prediction outcomes, earning shares of forfeited bonds from losing disputants.
Decentralized Resolution: Multi-layered system where anyone can propose outcomes by posting bonds, with Basis Army providing final arbitration if disputes arise.
Open Resolution Model: System where creators or any community member can resolve events, incentivized by bounty rewards for accurate, undisputed resolutions.
Bond-Based Disputes: Challenge mechanism requiring disputants to post bonds equal to 10x the bounty pool, with bonds forfeited to Basis Army if dispute fails.
User Experience Terms
Web3 Wallet Integration: Support for MetaMask, Trust Wallet, Coinbase Wallet, and other Ethereum-compatible wallets for seamless platform access.
Gasless Transactions: ERC-4337 implementation removing transaction fees for end users, improving accessibility and adoption.
Real-Time Analytics: Dashboard showing TVL, holder distribution, trading volume, fee accrual, and bonding progress for all tokens.
One-Click Operations: Simplified interfaces for token creation, trading, lending, and betting requiring minimal blockchain knowledge.
Mobile Optimization: Full platform functionality accessible through mobile browsers and planned dedicated applications.
Marketing & Positioning Terms
"Everyone Wins From Everything": Core platform philosophy where all participants benefit from all ecosystem activity through aligned incentive structures.
"Can't Dump": Marketing message emphasizing the mathematical impossibility of Stable+ token price decreases.
"Bet on the Event, or Bet on the Hype": Predict+ value proposition offering multiple profit paths beyond traditional win/lose betting.
"Up-Only": Consumer-friendly description of Stable+ technology's price protection guarantee.
"Rising Floor": Accessible explanation of Floor+ technology's increasing minimum value protection.
Ethical Monetization Infrastructure: Positioning as the solution to creator economy exploitation through mathematically enforced fairness.
Competitive Advantages
vs. Traditional Stablecoins: Offers growth potential while maintaining stability, not just pegged value.
vs. Polymarket: Decentralized, no geographic restrictions, multi-utility tokens, 5-10x volume potential.
vs. Traditional AMMs: No idle capital in pools, no impermanent loss, MEV-resistant, on-demand liquidity.
vs. Pump.fun: 100% liquidity backing vs 25%, permanent floor protection, sustainable growth model.
First Mover Advantage: First platform combining stable token technology with prediction markets and multi-utility design.
Future Development Terms
Advanced Research: Planned feature for complex queries requiring 10+ minutes of deep research with 100+ sources.
Cross-Chain Deployment: Expansion beyond Ethereum to capture users across multiple blockchain ecosystems.
Institutional Integration: Features designed for traditional finance bridges and enterprise adoption.
Creator Platform Compatibility: Integrations with TikTok, YouTube, Twitch, Instagram, and Web2 creator economies.
WHOP Marketplace: Strategic education platform leveraging $100M+ monthly GMV platform with 4M+ visitors for creators to learn ethical Web3 monetization strategies using Basis technology.
This glossary represents the current state of the Basis platform as documented in the latest technical specifications. For real-time updates and additional information, visit basis.io or consult the official documentation.
Last updated