Basis Cash (BAC)

Basis Cash (BAC) is a decentralized stablecoin designed to maintain a peg to the US dollar without regulatory risk. The protocol operates without rebases or collateral risk, aiming to stabilize purchasing power like central banks trade fiscal debt. Each Basis Cash token is intended to be used as a medium of exchange.

Besides Basis Cash tokens, the protocol includes Basis Share and Bond. Shares act as a medium of governing the protocol and provide seigniorage rewards through the Boardroom. Bonds, on the other hand, promise holders premiums when the BAC pricing returns to its 1-dollar peg.

The supply of Basis Cash expands or contracts based on the price movement. The supply increases when the price is above $1, and those who staked Basis Shares on the Boardroom are rewarded with BAC seigniorage. Conversely, when the price is below $1, the protocol holds auctions for Basis Bonds to contract the supply. These bonds can be redeemed for premiums once the BAC price returns to its peg.