Rather than relying on blacklists, cooldowns, or centralized restrictions, Baseline solves sniping at the market level through a smart, automated liquidity engine that removes the incentive to snipe altogether.

How It Works: Dynamic Price & Liquidity Rebalancing

Baseline prevents sniping through an elegant system that pulls the active price back toward the EMA (exponential moving average) whenever someone tries to push it too far from fair value. This mechanism prevents the kind of runaway candles that snipers typically exploit at launch. At the same time, Baseline dynamically reshapes liquidity in response to the trade by thinning it out in the direction of the snipe while reinforcing liquidity closer to the EMA.

For example: If a sniper buys at $4 while the EMA is $1.80, the system quickly adjusts: the next buyer doesn't continue at $4, but instead gets filled at a lower price, around $2 or $3. The sniper, expecting to flip for profit, is now holding an overpriced position with no exit liquidity above them unless they’re willing to sell at a loss.

This is the core insight of Baseline's approach: instead of banning wallets or adding artificial delays, it makes sniping unprofitable through market design. The system auto-corrects mispriced trades, which removes the incentive to snipe in the first place. The result is smoother launches, better price discovery, and most importantly, the sniper becomes the exit liquidity.

Why This Matters for Founders

Launching a token is about more than price, it’s about momentum, trust, and legitimacy.

Sniping kills all three. Baseline gives founders peace of mind that their chart will reflect real demand, not manipulative behavior.

✅ Fairer price discovery

✅ Smooth early price action

✅ No rug-pull optics

✅ No post-launch panic

✅ Stronger community confidence

You don’t have to micromanage or add launch restrictions. The system defends itself and your project.

Learn about Baseline trade, stake, borrow, and leverage: baseline.market

Kamigotchi approached Baseline out of frustration.

They had a great product, a cracked team, and a strong community. And they knew precisely what they wanted out of the token:

• Reward early believers

• Sustain an in-game economy

• Generate revenue to grow

Unfortunately, none of the existing token systems were able to support all of their goals. And rightfully so, the Kamigotchi team refused to compromise on their vision.

The Baseline Solution

Where others fall short, Baseline thrives because it is built with a different set of goals in mind. Instead of just getting a token to market, Baseline efficiently manages capital to sustainably grow the token over the long run.

By partnering with Baseline to launch $ONYX, the Kamigotchi community received:

Results

In just two months since launch:

• Price up despite $250k+ of net sell pressure

• 11% additional volume contributed by the liquidation-free leverage feature

• $1,000,000 STILL up for grabs at 0% interest

• The BLV has bumped twice, increasing floor price by 4% - permanently

• 33% of total supply is being used as collateral, reducing circulating supply and sell pressure

A Better Way to Launch

The $ONYX launch shows what happens when projects stop outsourcing tokenomics to luck, and start designing around long-term alignment.

With Baseline:

• Tokens have a real floor and better price discovery

• The system handles liquidity, market making and lending

• Founders can focus on building products, not defending price

Learn more at Baseline.markets

Key Metrics

💰 Total Sell-Off: $2.3M

📉 Price Impact: -15%

📉 Market Cap Drop: $61M → $51M

⚖️ Liquidity Depth: Adjusted dynamically to absorb large sells

Without BMM, a standard XY=K AMM pool would have resulted in:

❌ -65% price drop

❌ Market cap plummeting from $61M to $21M.

Instead, BMM prevented a catastrophic crash, keeping YES stable.

Understanding the Baseline Market Maker (BMM)

BMM is a new liquidity infrastructure designed to provide deep liquidity and protect against extreme volatility.

Single rebalance() operation – replaces multiple complex liquidity actions (bump, slide, sweep, drop) with a single efficient function.

Leveraged Anchor LP – increases liquidity depth by borrowing reserves against buybacks within a set range.

Asymmetric Liquidity Design – prioritizes more liquidity on the sell-side to absorb large dumps while allowing price to move up easily.

💡Unlike XY=K AMMs that distribute liquidity evenly, BMM concentrates liquidity above the floor. This ensures higher liquidity depth during sell-offs while maintaining a strong price recovery mechanism.

How BMM Handled the $2.3M Sell-Off

A step-by-step breakdown of how BMM adapted to extreme selling pressure:

1️⃣ BMM started with 254 ETH liquidity depth (-2%).

2️⃣ 530 ETH sell-off – BMM absorbed the dump, adjusting liquidity depth to 370 ETH (-2%).

3️⃣ 666 ETH additional selling – BMM reabsorbed supply, increasing liquidity depth to 486 ETH (-2%).

4️⃣ An extra 265 ETH sell-off occurred, but the price barely moved due to the deep liquidity buffer.

Final Outcome:

✔️ Sell-off absorbed without major slippage

✔️ Price drop limited to -15%

✔️ Market cap preserved at $51M vs. $21M in a traditional AMM

Real-Time Proof: BMM in Action

In a separate event (see second chart), a trader executed a $137K sell in a single clip.

📊 $137K Sell with <1% Price Impact

Key Takeaways

✅ BMM’s market-making model is resilient against high-volume dumps.

✅ Outperforms traditional AMMs in handling liquidity shocks.

✅ Protects price stability while enabling upside movement.

Dumps happen. But with BMM, $YES didn’t get rekt.

Instead, liquidity rebalanced efficiently, minimizing impact and preparing for future growth.

Next Steps

BMM’s resilience during this stress test sets a new standard for token liquidity infrastructure. As more projects adopt Leveraged Anchor LP, we expect even stronger price performance and deeper liquidity across the ecosystem.

If you’re a token founder looking to protect your token’s price while improving market efficiency, Baseline’s market maker is the solution. 🚀

https://mirror.xyz/0xe7AD459A24A10C5E94B76CcD24da62A8394eBf5f/Q9pBLoPxjgg6SatMnkojs5faAyBwlhEQAKFh3jfDFjI

We started with the idea that crypto deserves better tokenomics. In 2024, we introduced Baseline market making that demonstrated what better tokens look like. We’re now taking these learnings to our next generation of upgrades: Baseline V3.

https://x.com/BaselineMarkets/status/1874093185183736148

Launching in Q1, the Baseline Market Maker doesn’t just hold the line—it pushes markets forward: • Gives every token a strong price floor & uses floor liquidity intelligently • Protect from large dumps with enhanced support around market price

https://x.com/unbanksyETH/status/1869977298331676963

We believe every token deserves a Baseline:

• AI agents, apps, and autists will launch tokens that sustain themselves.

• Creators receive fees from buys and sells. No need to dump on your community.

• Launchpads will differentiate by deploying tokens that outperform

Soon, it’ll be clear: tokens with Baseline-backed liquidity will dominate. Over the next few weeks, we’ll announce partnerships with AI agents and DAOs that will launch bTokens using the Baseline API. This is the future of tokens — intelligent, valuable, and unruggable.

Meet yes.money—the first launchpad backed by Baseline Market Maker.

https://x.com/yesdotmoney/status/1878849779284976104

But that’s not all. $YES is coming to Base, bringing programmatic liquidity to the next billion users! (there’s no CA yet, more details in the Discord server)

LFB!

We’re building a future where liquidity works for you, not against you. From smarter market-making to better token launches—Baseline is the foundation of the next generation of tokens. The game for AMMs is about to change. Follow along!

https://x.com/BaselineMarkets/status/1879221883834679687

YESv1 - stability through thick liquidity

In March, we launched $YESv1 - our proof-of-concept of Baseline mechanics - with the following features:

• BLV - a baseline value that guarantees a floor price

• Automated market-making that increases BLV over time

• Ability to borrow against BLV while maintain exposure to upside

$YESv1 was a success in multiple ways:

• Floor Price increased 2.18x (from 0.000553 to 0.00121)

• Market Cap grew 136x (from $1M to $140M)

• Market-making system generated $2.1M in fees

Here’s YESv1 case study: https://mirror.xyz/0xe7AD459A24A10C5E94B76CcD24da62A8394eBf5f/Q9pBLoPxjgg6SatMnkojs5faAyBwlhEQAKFh3jfDFjI

$YES launched with a thick liquidity profile (~1K eth to move price +6%) expecting high system leverage due to native lending feature. A thicker liquidity profile would buffer volatility and cap downside risk but do so at expense of price action.

What we didn’t anticipate was how quickly users would discover the system’s hidden potential. Looping as a strategy emerged: users began borrowing repeatedly to build leveraged positions. At its peak, system leverage reached 7x.

Despite these successes, protocol accounting was inefficiently allocating liquidity to supply that was no longer circulating. This led to fewer BLV bumps and increasing liquidity depth regardless of market conditions. As a result, we performed Operation YEV to reset and improve the system with V2.

YESv2 - Return To Volatility

During this time, forward-thinking project teams took a chance on our liquidity experiments by launching their own bToken:

@machidotxyz → $MACHI

@mindpalace → $AI

@flappyeth → $FLAPPY

[redacted] → [redacted]

From these launches, we also learned that liquidity heavily influences attention through speculative price action. And while market making was now adapting to dynamic market conditions, the liquidity was not. This capped speculative energy not only on the downside but also on the upside, precisely at a time when token need it most.

So we launched Pumpanomics - a thinner liquidity profile that made depth and liquidity responsive to market cap growth. But while Pumpanomics creates favorable conditions for speculation on the upside, it also came with tradeoff of amplifying volatility (and risk) on the downside.

We’re now taking these learnings to apply them to our next generation of liquidity upgrades. We call it…

Baseline V3.

Some sneak peeks of what to expect:

• Completely revamped market-making logic

• @yesMoney420, a mobile-first launchpad for bTokens

• An API for anyone to launch Baseline bTokens

• BIG partnerships in the works

• More big news 🤫

We’ll be announcing more details next week. Notifications on 🫱 🔔

Isaac Newton said “If I have seen further, it is by standing on the shoulders of giants”. On a personal note, 2024 wouldn’t have been possible without our amazing community so we say: If we have seen further, it is thanks to our community. Thank you.

As we wrap up the year, we see the future clearly, the foundation is in place, and the next Baseline chapter will be up only.

BLV in something,

Baseline Team

With Loan Migration, you can upgrade your position to Loops, which improves upon traditional Loans by:

• Charging fees via a continuous funding rate instead of upfront interest.

• Removing the risk of default due to expiration.

• Gradually reducing debt and collateral in proportion to the funding rate (currently 15%).

Why Migrating Your Loan?

Baseline Loans have been a core offering since the inception of Baseline, enabling users to access backed reserves against their tokens. While innovative, Loans came with challenges: users often faced frustration from missed expiration deadlines, leading to defaults, and upfront interest charges added financial strain.

In September, we introduced Baseline Loops, an alternative to Loans. Unlike Loans, which charge interest based on the borrowed amount, Loops use a funding rate mechanism that continuously “shrinks” both debt and collateral. This eliminates expiration deadlines while maintaining the same exposure, offering a more efficient and user-friendly experience.

Loan Migration allows users to transition their Loan positions to Loop positions. This migration retains your exposure, shifts upfront fees to continuous charges, and removes expiration dates, making it a smart move for users managing active loans.

Benefits of Loan Migration

By migrating your Loan position to a Loop position, you can:

• Avoid Defaults: No more missed deadlines or expiration-induced defaults.

• Simplify Portfolio Management: Loops automatically adjust debt and collateral with every block.

• Eliminate Upfront Costs: Protocol will automatically collect fees every block by reducing debt and collateral at a rate of 15%

It’s worth noting that Loops do not receive floor bumps at this time. If you wish to continue receiving floor bumps, you can maintain your Loan position. However, we’re actively working to introduce the ability to claim floor bumps with Loops in the near future.

How to Migrate

Important Notes

• BorrowFacility Positions: Loans and manual Loops in the BorrowFacility are still subject to expiration deadlines. If an expiration date is displayed, your position remains in the BorrowFacility until migrated or extended.

Take Control Today

If your Loan is nearing expiration, take advantage of Loan Migration to safeguard your position and streamline your portfolio. Migrating is quick, easy, and can save you from unnecessary defaults.

Got questions or issues? Reach out to our support team—we’re here to help!

Distribution

Each week, we will distribute 25% of Blast Gold based on volume looped and unrealized PnL in Baseline Loops, calculated as follows:

1. Volume: Rewards are distributed pro-rata based on participant’s looped volume (buys or sells) during the week, and

2. PnL: Rewards are distributed based on unrealized PnL with the best AND worst unrealized PnL receiving the highest rewards:

   1. PnL is within 25th and 75th percentile: 1x multiplier

   2. PnL is between 10th-25th OR between 75th-90th percentile: 1.5x

   3. PnL is less than 10th percentile OR greater than 90th percentile: 2x

This applies to YES, MACHI, AI and any new Baseline tokens live during the competition week.

Example

Suppose total looped volume (buys or sells) across all pairs was $1M for the week.

• A user who traded $10K gets 1% of weekly Blast Gold

• A user with high PnL (top 10%) receives a 2x boost on their Blast Gold, relative to others without a boost

• A user with low PnL (bottom 10%) receives a 2x boost on their Blast Gold, relative to others without a boost

• A user with average PnL (between 25th and 75th percentile) won’t receive any boost on their Blast Gold

Eligibility

To be eligible for the weekly Blast Gold rewards, users must loop during the week of competition to qualify. YES, MACHI, AI and any new Baseline token qualify.

What changed since last BTC?

• No more time multiplier

• Total looped volume (including buys & sells) instead of collateral

• Users must loop during the week of competition to qualify

• Extends to all future Baseline tokens, including YES, MACHI and AI

Disclaimer

Like any strategy, looping carries risks, so be sure to DYOR before executing. Learn more: https://docs.baseline.markets/utility/loops. Baseline Markets may revise these Rules at any time. The competition and rewards may also be terminated at the sole discretion of Baseline Markets.

I invest in Bitcoin (BTC) because I want digital gold. I trade Baseline Trading Competition (BTC) because I want Blast gold.

- Satoshi Nakamoto

What is this?

The Baseline Trading Competition is a four-week trading competition incentivizing users to participate in Baseline Loops across $YES and $MACHI tokens. The competition will distribute 400,000 Blast Gold based on time held, volume, and PnL performance.

Competition Schedule

The first competition will begin on Monday, September 16, 2024, and last for 4 weeks. Each competition period starts at 00:00 UTC on Monday and ends at 23:59 UTC on Sunday, with rewards distributed weekly. The timeline of each weekly competition will follow this schedule, with new rounds beginning immediately after the prior one ends, until all Blast Gold has been distributed.

Blast Gold Distribution

Every week, 100,000 Blast Gold will be distributed evenly across YES and MACHI based on each participant’s performance in Baseline Loops. Rewards are determined by the following:

1. PnL Distribution: Rewards are scaled based on unrealized PnL with the best AND worst PnL receiving the highest rewards:

   • Between 25th and 75th percentile: 1x multiplier

   • Between 10th-25th OR 75th-90th percentile: 1.5x

   • Less than 10th percentile OR greater than 90th percentile: 2x

2. Time Multiplier: Rewards are scaled based on how long positions are held:

   • Holding for a longer duration results in a higher multiplier, from 1x to 2x, scaled linearly per day.

3. Volume Multiplier: Rewards are also scaled based on a participant’s looped supply relative to total looped supply:

   1. Week 1

      • Up to 0.1% of total supply looped: 1x

      • 0.1% to 1% of total supply looped: 1.5x

      • 1%+ of total supply looped: 2x

   2. Week 2 - onward

      1. Less than 500 MACHI or 30 YES: 0x

      2. Up to 0.01% of total supply looped: 1x

      3. 0.01% to .1% of total supply looped: 1.5x

      4. 0.1% to 1% of total supply looped: 2x

      5. 1%+ of total supply looped: 3x

   NOTE: to prevent manipulation, looped supply is averaged over the number of blocks held. So if you held 10 YES for 50 blocks and then increased to 100 YES for next 50 blocks, your looped position will show as 10 * (50/100) + 100 * (50/100) = 55 YES. To meet the minimum qualification of 30 YES or 500 MACHI, you can either increase looped position (increasing the average through size) or hold the position for more blocks (increasing the average through time).

Example

• A user with high PnL (top 10%), holding their position for the entire week, and contributing to 10% of total supply looped will receive 8x Blast Gold, relative to others.

• A user with low PnL (bottom 10%), holding for 1 day, and contributing 0.1% of total supply looped will receive 3x Blast Gold.

• A user with average PnL (within 25th and 75th percentile), holding for 1 day, and contributing 0.01% of the volume will receive 1x Blast Gold.

Eligibility

To be eligible for the weekly Blast Gold rewards, users simply need to have at least one Looped position open on YES and/or MACHI. If you have an existing Looped position, you do not need to do anything to qualify.

Disclaimer

Like any strategy, looping carries risks, so be sure to DYOR before executing. Learn more: https://docs.baseline.markets/utility/loops. Baseline Markets may revise these Rules at any time. The competition and rewards may also be terminated at the sole discretion of Baseline Markets.

What is it

Looping involves repeatedly borrowing against bToken to purchase more bTokens, creating a leveraged position. When the bToken's price rises relative to the reserve asset, looped positions see amplified returns:

Unlike Baseline Loans, where users have to pay interest based on the amount borrowed, Loops use a funding rate mechanism to charge fees on looped positions. In this system, the protocol automatically "shrinks" both collateral and debt over time, allowing users to maintain non-liquidatable leveraged exposure without any active management of the position.

How do I loop?

Baseline Loops simplifies the looping process through a simple user experience:

1. Deposit reserves (ETH, USDB, etc) to Open and/or Increase Position.

2. The system automatically max loops for you.

3. Decrease and/or Close Position to un-loop collateral and return reserves.

This streamlined process unlocks benefits of a leveraged position while reducing complexity to a minimum. To learn more about Loops: https://docs.baseline.markets/utility/loops

When do I loop?

Looping tends to be most advantageous when:

1. The bToken's price is close to its BLV, offering maximum capital efficiency and lower downside risk.

2. You have a strong conviction in the bToken's short to medium-term price appreciation.

3. You understand the risks involved and have a clear exit strategy.

Remember, while looping near the BLV offers better capital efficiency, it should still be approached with caution and a thorough understanding of the potential outcomes.

Next Steps

Loops is now available for YES and (soon) MACHI. Head over to Baseline Markets to try it out:

https://app.baseline.markets/

1. We’re relaunching Friday, Jun 7, at 9AM PT / noon ET / 4PM UTC / midnight Singapore.

2. No user funds were lost in the launch. Funds are safe.

3. The pool took in trading volume without V1 positions being fully migrated, making the liquidity distribution incorrect.

4. If you traded, borrowed, or looped YES V2, you’ll be reimbursed 100% of your initial investment in a few hours.

5. YES will re-launch with same BLV, premium and liquidity structure.

What happened?

The YES-ETH LP became tradable before all YES V1 positions were migrated to YES V2. Since the correct circulating supply was not present on initialization, the pool started off in a wrong state and BLV bumped higher than it should have.

The Plan Forward

We will refund all V2 participants their initial ETH investment. This plan makes users whole while preventing dilution of V1 snapshot. To see amount you’re getting refunded, see here:

https://gist.github.com/basehunter69/5fce07afbede0ebf175a37338dbaf5f2#file-eth_refund-csv

The refund amounts to 1,163.19 ETH which will be paid by 876.28 ETH in net inflows and 286.91 ETH from Afterburner. In the process, the protocol burns 38,425.4 YES V1 which will be reflected in adjusted Yescension snapshot. This plan allows us to relaunch with exactly same BLV and liquidity structure.

If you’d like to understand the details of refund calculations, see appendix section below.

Next Steps & Relaunch

1. In the next few hours, we will distribute the refunds

2. We will relaunch Friday, Jun 7, at 9AM PT / noon ET / 4PM UTC / midnight Singapore

Appendix: Refund calculations

At launch, we were running a batch script to migrate YES V1 holders to V2. As a result, a mix of snapshotted users and non-snapshotted users traded YES V2. To properly calculate refunds, we evaluate three segments:

1. Users not in Yescension snapshot

2. Users in Yescension snapshot, but did not get distribution

3. Users in Yescension snapshot, AND received distribution

Case A: Users not in Yescension snapshot

If you were NOT in Yescension snapshot and traded/borrowed/looped YES, you will be reimbursed 100% of your initial investment, adjusted for profits made and opened loans. You can confirm your refund here:

https://gist.github.com/basehunter69/5fce07afbede0ebf175a37338dbaf5f2#file-users_not_in_yescension-csv

Case B: Users in Yescension snapshot but did not get distribution

If you did not trade V2, there is nothing for you to do. You will get exact same Yescension allocation as before.

If, however, you traded V2, then you will be reimbursed 100% of your initial investment, adjusted for profits made and opened loans. If you sold YES, your Yescension allocation will be adjusted. You can confirm your refund here:

https://gist.github.com/basehunter69/5fce07afbede0ebf175a37338dbaf5f2#file-users_yescension_not_distributed-csv

You can confirm your Yescension allocation here:

https://gist.github.com/basehunter69/38fb5307cdd75c571aebc3d996400a31

Case C: Users in Yescension snapshot AND received distribution

If you did not trade V2, there is nothing for you to do. You will get exact same Yescension allocation as before.

If, however, you traded V2, you will be reimbursed 100% of your initial investment, adjusted for profits made and opened loans made before you received your distribution. If you sold YES, your Yescension allocation will be adjusted. You can confirm your refund here:

https://gist.github.com/basehunter69/5fce07afbede0ebf175a37338dbaf5f2#file-users_yescension_distributed-csv

You can confirm your new Yescension allocation here:

https://gist.github.com/basehunter69/38fb5307cdd75c571aebc3d996400a31

Study Baseline, study YES

Before we explain what makes Baseline tick, a primer:

Above is what a Baseline-powered chart looks like. YES was launched with wETH as a pairing asset. The candles at the top represent the market price, typically seen on platforms like Dexscreener or Coingecko, where tokens are traded.

The green line, known as the BLV (Baseline Value), represents all the intrinsic value accumulated by YES through volumes and fees, stored on Baseline’s smart contracts. Trading volume can be viewed at the bottom of the chart.

The first candle

On March 2nd, we successfully completed the IBLV (initial baseline value) event with nearly 100% of the spots filled in an smart contract with 311 ETH (~$1m). The contract then allocated the funds to the floor range, establishing the initial price of $YES at $1.9.

The growth of the floor slowed down around 6:00~12:00, but because the volume remained consistent, the premium, which is the distance between the market price and the BLV, remained relatively the same.

When we closely examine the chart, it becomes evident that the floor grows faster as the volume increases. However, the floor does not decrease when the volume is lower. In fact, BLV growth comes from selling tokens at premium, the greater the premium, the greater the BLV growth.

YES launched with a conservative liquidity profile: the discovery range was configured to get progressively thicker as the price rose. On its first day, the BLV grew by 50%. Because the BLV grew, the borrowing capacity did too. Holders were able to access even more wETH and used that capital to purchase more YES.

Timing is everything

Baseline has a decentralized Credit Facility that allows YES holders to borrow wETH by using their YES as collateral. Since Baseline guarantees an intrinsic value for each token, the protocol allows holders to borrow this value at a high loan-to-backing value, for a small fee, and with no risk of liquidation.

Below is an oversimplified example of looping efficiency at both a 50% and a 5% premium. Looping is a form of max leveraging by borrowing ETH to purchase more YES, and repeat that process. For the sake of simplicity, this infographic assumes 1 YES = 1 ETH, and interest costs are not taken into account.

As you can see, a borrower that loops YES at a 50% premium can increase its position to 1.88x within 3 loops. If that same borrower would loop their YES at a 5% premium, his position size would be over 3.11x

Buy low sell high

This seems to be the most logical thing to do, but it’s easier said than done. Most of the time, this strategy can be difficult as prices reflect emotions and psychology, then exaggerated and lead to over-estimation that manifest as volatility. However, when a trader looks at a Baseline chart, trading becomes much easier because emotions are measured when there’s a safety net (BLV), they know the downside is capped.

Fast forward to March 15th, YES’ BLV was sitting comfortably at a fixed price, and the Credit Facility was as healthy as ever. As the sell-off moved price toward BLV price, traders felt comfortable enough to jump back into YES, knowing their max downside was limited.

Around 18:00 on the 19th, something really interesting happened. The price moved towards the BLV - someone recognized it was a good time to accumulate more YES, re-entered and immediately started looping. Shortly after that, the BLV bumped and the premium increased.

With traditional lending markets, holders looking to lever up are exposed to liquidations, volatile interest rates, and lack of liquidity. With YES and its isolated lending market this is not the case. Holders can always access the ETH from the BLV. Therefore, the closer the price is to the BLV, the lower their maximum downside is. This is why we saw more people borrowing as YES got closer to the BLV. The closer the price is to the BLV, the more efficient loops become.

A Successful Dump

YES v1 was live for a month. During this time, we continued building v2 and Baseline Exchange as we saw consistent volume and a rising floor, maintaining a ~30% premium. On March 30th, we conducted a whitehat operation where we secured the premium and provided holders with the option to migrate their YES to V2. This pivotal moment witnessed a significant price dip followed by a substantial floor bump on the chart. It conveyed a powerful message because even though we intentionally "rugged" the protocol, the price never dropped below BLV, showcasing its resilience and the capabilities of Baseline. Baseline Tokens are unruggable.

This is all possible because 100% of supply was deployed on Blast’s native DEX, Thruster’s v3 pool, to create and reshuffle concentrated liquidity positions at launch. All the tokens are kept on-chain by the protocol and used to protect their value forever.

Current state of YES

We are currently in the middle of the migration. Any YES bought between now til we launch YES v2 will be “stuck” at BLV so please wait until YESv2 launch to accumulate YES. We will be back in Q2, 2024!

What’s coming

The automated market making system we implemented on YES is flexible and designed to complement any ERC20 token. We believe every token should have a floor value like YES.

In the next few months, alongside product integrations, we are going to help onboard projects onto Baseline Exchange, we will spend a lot of time and effort assist in designing customized liquidity structures tailored to project needs. We can collaborate with projects offering staking rewards, emissions, a strong meme, or even migrating pre-existing tokens. We will assist projects in adjusting parameters to align with their protocol's nature. For instance, memecoins could be designed to be more volatile with more frequent BLV bumps.

What we’re most bullish about is we are going to offer existing token migration. We'd love to see builders who share our values and genuinely aim to make a meaningful impact in this space, converting their ERC20s into a Baseline token. This allows them to focus on building their product without worrying about token price. We understand this is not an easy decision to make so don’t hesitate to talk to us even if you are just flirting with the idea, we will do our best to help.

My name is Boo, if you like what we are building, feel free to reach out to me on TG @basedboo, I'd love to connect with you!

See ya next time ;)

• The Yescension Event migrates YES from V1 to the upcoming V2

• Spot $YES holders, LPs, and Loopers that held $YES at block 1421059 can migrate, getting in on the ground floor for YES V2

• YES V2 features many improvements that will see the BLV price increase higher and faster

• Migrating will also earn you Blast Points and Gold

Two weeks ago, the team discovered a bug in the Credit Facility. This prompted a whitehat operation, dubbed Operation YEV, where the team preemptively captured all available liquidity in $YES above the BLV across all pools. As a result, the team was able to rescue 368.69 ETH to be distributed pro-rata to all YES holders participating in the Yescension Event.

What is the Yescension Event? Yescension is the migration from YES V1 to the upcoming V2. The new YES will launch with an improved liquidity design, enabling BLV to move up higher and faster. V2 will also launch Baseline Exchange, which we’ll share more details on in next few weeks.

Not everyone gets a golden ticket to participate in launch of V2. The opportunity is exclusive to spot YES holders, YES-X LPs, and Loopers that held YES at block 1421059. You can check your eligibility here:

https://github.com/banteg/baseline-snapshot

By participating in the Yescension Event, participants get:

1. The best entry price for the new $YES token, V2, and Baseline Exchange

2. Spot holders and LPs will migrate at the BLV value, currently at 0.001231, and receive a pro-rata ETH bonus (currently 1.9%) paid out from recovered funds in Operation YEV (368.69 ETH)

3. Loopers will receive ETH paid pro-rata out from recovered funds, and have their looped positions recreated with almost no drawdown

4. Blast Points will be awarded pro-rata based on ETH in the Yescension.sol contract

5. 25,000 Blast Gold will be awarded pro-rata based on ETH in the Yescension.sol contract by April 20th

Alternatively, you can choose to exit the system by collecting your pro-rata share of BLV and recovered funds, and forfeit a spot in V2. Please note that loopers who do not migrate will face significant drawdown. Thus, if you are looped, it is highly recommended you participate in the Yescension Event.

How to Migrate

Spot holders

A spot holder is someone who holds naked YES in their wallet. If you held YES in your wallet at block 1421059, you are in the snapshot. To participate in Yescension, do the following:

1. Visit https://app.baseline.markets/yescension

2. Click approve to spend your YES

3. Click Ascend() to migrate (or Exit() to leave)

4. Submit the transaction and you should see a success screen that records your ETH deposited. Behind the scenes, the protocol transfers your YES, for ETH and deposits it into the contract.

5. Wait for V2

Example

1. Circulating supply snapshotted for migration is 16,039,542.95. Current BLV is 0.001231

2. You hold 100,000 spot YES.

   • The ETH value of this at BLV is 123.10 ETH.

   • You’re entitled to your pro-rata share of 368.69 ETH, which is 2.30 ETH.

3. You either deposit 125.4 ETH and secure your spot in V2, or exit with 125.4 ETH and forfeit your spot.

LPs

An LP is someone who provided liquidity to YES-X pair in AMMs (Thruster, Ambient, etc), deposited into lending markets (Maybe Markets, Ajna, Alien, etc) or margin trading protocols (Particle, Wasabi). If you held one of these in your wallet at block 1421059, you are in the snapshot. To participate in Yescension, do the following:

1. Unwind your LP position or withdraw from lending market

2. Visit https://app.baseline.markets/yescension

3. Click approve for protocol to spend your YES

4. Click Ascend() to migrate (or Exit() to leave)

5. Submit the transaction and you should see a success screen that records your ETH deposited. Behind the scenes, the protocol transfers the credit account to itself, and redeems YES for ETH based on pro-rata distribution of YEV rewards.

6. Wait for V2

Example

1. Circulating supply snapshotted for migration is 16,039,542.95. Current BLV is 0.001231.

2. You hold YES-USDB LP. You unwind to receive 2,000 YES.

   • The ETH value of this at BLV is 2.46 ETH

   • You’re entitled to your pro-rata share of 368.69 ETH, which is 0.0459 ETH.

3. You either deposit 2.5059 ETH and secure your spot in V2, or exit with 2.5059 ETH and forfeit your spot.

Loopers

A Looper is someone who borrowed at least once, and has not defaulted. If you had a credit account in your wallet at block 1421059, you are in the snapshot. To participate in Yescension, do the following:

1. Visit https://app.baseline.markets/yescension

2. Click approve for protocol to spend your YES

3. Click Ascend() to migrate (or Exit() to leave). Note that while you can exit, you will suffer significant drawdowns by doing so. Migrating is a better choice because your position in V2 will be re-created almost identically from your V1 position.

4. Submit the transaction and you should see a success screen that records your ETH deposited. Behind the scenes, the protocol unwinds your looped position using a flash loan, with the ETH deposited into the migration contract, and then rewinds it to original shape and deposits pro-rata share of YEV rewards.

5. Your looped positions will be recreated with almost no drawdown in YES V2.

Example

1. Circulating supply snapshotted for migration is 16,039,542.95. Current BLV is 0.001231.

2. You hold 1,000,000 looped YES.

   • The ETH value of this at BLV is 0 ETH (all boosts have been distributed already).

   • You’re entitled to your pro-rata share of 368.69 ETH, which is 22.99 ETH.

3. You either deposit 22.99 ETH and secure your spot in V2, or exit with 22.99 ETH and forfeit your spot.

Points, Points, Points, Points

Holders who choose to participate in the Yescension Event will automatically accrue Blast Points, pro-rata based on ETH deposited into Yescension contract. In addition, the team will incentivize timely migration by distributing 25,000 Blast Gold, pro-rata based on ETH deposited, for all holders who migrate by April 20th.

These new incentives supercede Universal Baseline Income: users will no longer be incentivized for looping or providing YES-X LP. Two days ago, we distributed the last batch of 229M points to loopers. We are still working with our partner, Hyperlock, to distribute 68,000 Gold to LPs for providing liquidity from March 18th until block 1421059.

Next Steps

• Yescension Event is now live until end of day Pacific Time, April 20th.

• Visit https://app.baseline.markets/yescension to migrate. Ascend, anon!

FAQ

What do I need to do as a user?

Follow instructions in the article, and do so by April 20th. This applies if you’re holding spot YES, your’e a looper, and/or if you deposit liquidity into AMMs or lending markets.

Who qualifies?

Only wallets in this snapshot qualify: https://github.com/banteg/baseline-snapshot/blob/master/snapshot_data.csv

What happens if I don't yescend by the deadline?

You will not be able to migrate. You can always sell YES into the protocol-owned YES-ETH LP at BLV price (0.001231 ETH).

Do I need to have wETH to migrate?

No.

Do I need to buy $YES to migrate?

If you have sold YES after the snapshot, you’ll need to repurchase up to the amount snapshotted in order to migrate. If you had an LP position and the total amount of YES has shifted since snapshot, you’ll also need to buy YES to reach the snapshot balance if you’d like to migrate the full amount. You can buy YES at BLV price from protocol-owned YES-ETH LP.

What if I buy more YES than I’m snapshotted for?

Say you’re snapshotted for 10 YES and you hold none. You can buy 15 YES. The contract will only migrate your 10 YES, and wont touch the remaining 5 YES. You can sell the remaining YES into protocol-owned YES-ETH LP at BLV price (0.001231 ETH).

Can I partially migrate?

No. You can only migrate your entire position.

What’s the TLDR I need to know so I don’t mess things up?

1. You only get one migration entry, if you do not migrate your full amount of YES now, you will be unable to do so later.

2. You need to migrate by April 20th.

3. You need to approve YES to migrate. Your spot YES and looped position will be transferred to Yescension contract.

Does my credit account position retain its loops in V2?

Yes

What will my expiration date be?

Your credit account will be migrated to V2, and start on the same expiration date as everyone else.

Can I add to my position once I migrate?

Yes, you’re able to add to your position and extend like normal when V2 launches.

How can I check my position on V2?

Yes. A frontend for V2 will be available at launch.

What happens to the boosts I didn't claim?

No need to do anything. The team boosted everyone’s credit account pre-Yescension.

Will Jimmy Stimmy still be paid in V2?

Yes, JimmyStimmy recipients will continue to receive distributions based on this article

For background information, please see our incident disclosure.

Summary

In Operation YEV, we compose multiple flashloan arbitrage swaps and liquidity rebalances into a single transaction in order to maximize the liquidity we capture above the BLV. All captured liquidity is sent to a community-governed multisig.

The operation can be broken down into a few steps:

Step 1: Initial Selloff

In this step, the contract takes a flash loan to repay all associated team wallets to unlock initial $YES supply. It performs the following actions:

1. Transfer ~86,407 YES across team wallets to the contract.

2. Takes a flash loan for 1,838 ETH. Repays all team associated credit accounts to receive a total of 1,545,605 YES.

3. Sell 832,826K YES to bring the activeTick() to exactly floorTick() + 408.

4. Triggers slide() to reset the checkpoint tick.

There is now 1,133.9 ETH and 799,187 YES in the contract, and an outstanding flash loan to repay.

Step 2: Arbitrage External LPs

In this step, the contract arbitrages all external LP pools with the main pool now that it is trading at BLV. It performs the following actions:

(amounts will be updated after we analyze the transaction)

1. Sell 38,168 YES for 51.4 ETH in the .3% YES/ETH pool on Thruster

2. Sell 31,541 YES for 42.5 ETH in the YES/ETH pool on Ambient

3. Sell 312,549 YES for 1,468,399 USDB in the 1% YES/USDB pool on Thruster

4. Sell 5,870 YES for 27,641 USDB in the 0.3% YES/USDB pool on Thruster

5. Sell 1,469,041 USDB for 407 ETH in the .3% ETH/USDB pool on Thruster

There is now 1,227 ETH and 723,607 YES in the contract, and an outstanding flash loan to repay.

Step 3: Trigger Initial Shift

In this step, the contract then loops the YES in the contract to trigger another shift. This distributes an additional ~380 ETH by increasing the floor by 2% across the entire supply. It then takes another flashloan to pay off the loop and dump the remaining YES for ETH. It performs the following actions:

1. Loop 144,721 YES 6 times (total exposure of 868,328 YES) to bring the activeTick() to floorTick + 1009

2. Trigger shift(). This distributes an additional ~380 ETH in the mitigation process by increasing the floor by 2% for all circulating supply.

3. Flash loan 1,048 ETH to repay debt and redeem 868,328 YES

4. Sell 667,645 YES for 856.39 ETH to trigger second slide at floorTick + 208

5. Sell the rets of the YES after slide at 736,481 YES for 914.6 ETH

6. Pay back both flash loans for a total of 2,886 ETH

There is now 265 ETH in the contract, and no outstanding loans to repay in the flashloan.

Step 4: Fee Collection and Repay

In this step, the contract collects all distributed fees and converts any remaining assets to ETH before repaying its flashloan. It then sends any remaining profits to the community multisig. It performs the following actions:

1. Collect 81,031 YES of protocol fees accrued from the shift

2. Sell that YES for 100.467 ETH

3. Total profit is 350.632 ETH. Send the ETH profits to 0xb4b9106fe909E9354A19842a31ffB611D48A92d0

There is now no remaining ETH or YES in the contract, and all flashloans have been repaid. Transaction is finalized.

Final Snapshot and Distribution Process

A snapshot for eligible YES to claim has been taken one block after the transaction was executed at block number 1421059. You can check if your wallet has been included in the snapshot here:

https://github.com/banteg/baseline-snapshot/blob/master/snapshot_data.csv

• Funds are safe. The protocol is not at risk.

• On March 22, 2024, a security researcher [1] disclosed a bug in the Baseline Credit Facility.

• A bug in the Credit Facility defaulting logic has caused the protocol to still count the defaulted YES towards the circulating supply. This means the protocol keeps additional irredeemable ETH for this supply of already burned YES, suppressing the protocol growth.

• Mitigation process includes removing liquidity above the BLV price.

Background

Last Friday, a whitehat messaged the team about a bug in the CreditFacility.sol code which could potentially lead to an error in the accounting logic.

The team quickly verified the issue and started a war room to decide how to mitigate the problem. When YES is valued at floor price, spot YES will have a ~20% drawdown against their value, but all credit accounts will be at total losses. This is because the value of the collateral is now worth the value of the debt.

To ensure fair outcomes for all YES participants, the team has preemptively captured the liquidity premium across all YES/ETH liquidity pools in a whitehat operation.

Any of the profits captured selling YES above BLV will be socialized across the snapshotted circulating supply. Each snapshotted YES is be entitled to an equal portion of the profits available in the market.

For details on the operation, please read Operation: YEV.

Details of Incident

The CreditFacility.sol contract contains a flaw in how loans are ordered internally. In Baseline, each credit account is linked to an expiry "timeslot", which is a uint256 timestamp rounded to the nearest day. This allows the contract to default loans in batches, making the liquidation process highly efficient.

The issue comes from how the contract tracks which timeslots have been defaulted. An accumulator variable, tsHead(), is used to store the next available timeslot to default. If tsHead() does not exist, it is set to the first available expiry in the system.

Upon launch, the first loan duration taken was for 1 year. As a result, the tsHead() was set to March 3, 2025. All defaulted loans prior to that that time are not properly cleared from the system, creating a permanent overhang in the circulating supply of YES.

To date, the protocol is accounting for ~717,000 additional $YES in the circulating supply.

Protocol Impact

This issue impacts Baseline protocol in two ways.

1. Reduced BLV price: MarketMaking.sol allocates "dead" liquidity for the non-existent supply, underestimating the true floor value for the token.

2. Increased liquidity depth: MarketMaking.sol mints additional discovery liquidity to account for nonexistent ETH debt in the system.

Impact on $YES

While the funds in the liquidity pool are safe, without future growth of the system, $YES tokens lose any premium value and trade at the BLV price. Each $YES token can still be sold at the floor price, but any surplus value from $YES in the credit facility is wiped out.

This significantly impacts "loopers", who repeatedly traded the BLV value of their tokens for premiums. Any "looped" $YES will experience significant drawdowns.

Mitigation Summary

The team has preemptively captured all available liquidity in $YES above the BLV across all pools. By doing so, we can take any profits made from being the "first seller" and share it equally across the entire supply.

Aside from the main YES/ETH deployed by Baseline, we have also arbitraged the following pools:

• YES/ETH .3% on Thruster

• YES/USDB 1% on Thruster

• YES/USDB .3% on Thruster

• YES/ETH on Ambient

Any liquidity is captured is then held at 0x00000000 and custodied by a multisig of the following signers:

• Plotchy - Nascent Security

• Banteg - Yearn Finance

• Poolpi - Yearn Finance

• Trust - Trust Security

• indigo - Baseline Protocol

For details on the specific amounts captured and distributed, please read Operation: YEV.

Timeline of events

• Notification of issue - Friday, March 22nd, around 6am ET

• Outreach & MS setup - Friday, March 22nd, around 11PM ET

• Finish Implementation - Thursday, March 28th, around 5PM ET

• Execute operation - Thursday, March 28th, around 2PM ET

The Baseline team appreciates all of the efforts made by the multisig signers to review the protocol and any related operations. Their experience and guidance have been helpful in the process of facilitating a secure and fair outcome for anyone affected by the protocol.

Third-Party Disclosure

Baseline does not currently have any established bilateral disclosure agreements. No disclosure has therefore been made to third parties prior to this publication.

Introducing Universal Baseline Income (UBI) - our initiative to distribute Blast Points and Blast Gold for activities that build a broad and deeply liquid YES.

YES is entering its 3rd week of existence. There is a total of 5,107 ETH in the pool. Average daily volume is $18.6M/day with not a single day less than $1M/day. By all measures, YES-ETH has become an anchor liquidity pair for entire Blast ecosystem. This is just one example of what Baseline mechanics are capable of.

We are now ready to leverage this position of strength into supporting liquidity needs of other projects. To date, Baseline has accumulated 227.3M Blast Points, which puts us as the 7th largest Points recipient in the entire Blast ecosystem. We were also winners of Blast Big Bang Competition and will receive a substantial amount of Blast Gold. 100% of both Blast Points and Blast Gold will be distributed to the community per guidelines below.

Blast Points are for borrowing

Users who collateralize their YES holdings are contributing to a robust YES-ETH LP. To reward this behavior, we will distribute Blast Points to users based on their YES collateral holdings. Specifically, we calculate your collateral position relative to total system collateral, and distribute the points proportionally.

For example, suppose that in a given hour, Baseline received 1M Blast Points. In that hour, there was 100,000 total YES collateral, and the user below has 8,180 YES collateralized. Proportionally, they’re entitled to 8.18% of 1M Blast Points in that block.

Existing Blast Points (227.3M) will be distributed retroactively - if you borrowed anytime since launch, you will be awarded Blast Points. Retroactive distribution will occur on Monday, March 18th, at 23:59 PT.

New Blast Points will be distributed on an hourly basis. One important thing to note is that there is a 2 hour delay from the time that Blast calculates our award until we can distribute the points. So points for your collateral holdings in hour H will appear as points in your account at hour H+2.

Points will be visible in https://app.baseline.markets

Blast Gold is for liquidity

Users who pair YES against any token are contributing to making YES into a broadly liquid asset. To reward this behavior, we will distribute Blast Gold to liquidity providers of YES-X LP (excluding YES-ETH). Specifically, we calculate total volume through YES-X LP that ends in, or originates from, YES-ETH LP.

Snapshot for Blast Gold began Monday, March 18th, at 00:01 PT. Distribution will be on a weekly cadence, distributed at end of week. First distribution will be Sunday, March 24th, at 23:59PM PT.

Next steps

Keep in mind that UBI is an experiment. This means the team will continually evaluate whether YES is achieving liquidity goals and adjust accordingly. This initial plan will run through end of March (~2 weeks), after which team will evaluate and propose next set of incentives.

How to earn

• Blast Points: Buy YES and borrow ETH

• Blast Gold: Provide YES-X LP (excluding ETH) liquidity on Hyperlock

Instructions for using Hyperlock

• Navigate to https://app.hyperlock.finance/#/yes

• Make sure to turn on “Yes Mode”

• If you haven’t added LP yet, you will be asked to add LP on Thruster DEX. If you’ve never added V3 LP, see Adding V3 Liquidity on how to do so.

• After you’ve added LP on Thruster DEX, navigate back to Hyperlock and you should see your YES-X LP appear. Click Deposit, sign the transaction, and stake the LP.

• You will now receive Blast Gold pro-rata based on volume traded.

FAQ

What YES-X LP qualify for Blast Gold?

Any YES-X LP (excluding YES-ETH) qualify for Blast Gold. There are 7 partners at launch, and there will be more. Visit Hyperlock YES Partners to see all partners.

I’m a partner who wants to pair with YES. Where do I start?

Reach out to us in Discord.

https://mirror.xyz/0xe7AD459A24A10C5E94B76CcD24da62A8394eBf5f/bS6Ofzk0nwtoZqQNYG9I92ytIrkvVVpNzumCGtM5YTg

While the frontend will be available next week, we wanted to share instructions on how to claim directly from JimmyStimmy contract.

Who qualifies?

See this snapshot:

https://gist.github.com/basehunter69/547f93f686a4d38bce08c48ac7635d10

Claiming from contract

• Navigate to 0xSplit’s SplitMain contract: https://blastscan.io/address/0x2ed6c4b5da6378c7897ac67ba9e43102feb694ee#readContract

• Check your eligible claim amount by finding getERC20Balance() function, and enter your wallet address in account (address) field, and 0x4300000000000000000000000000000000000004 in token (address) field

  account: your address
  token: 0x4300000000000000000000000000000000000004
  

  Only qualified addresses will return a non-zero value. If a zero is returned you are either providing the wrong address or you are not qualified. Check this list for a list of qualified addresses.

• After confirming you have WETH to receive, go to the Write contract tab and connect your wallet by click the Connect to Web3 button:

• After connecting your wallet, find withdraw function, and enter the following parameters:

  account: your address
  withdrawETH: 0
  tokens: [0x4300000000000000000000000000000000000004]
  

• Submit the transaction, and you should be able to see WETH appear in your wallet in a few seconds. If you don’t see WETH in your wallet, make sure to it as a token in your wallet provider: 0x4300000000000000000000000000000000000004

To address this unfair dynamic, we’re launching the Initial Baseline Value (IBLV) Event!

The Initial Baseline Value (IBLV) Event

The IBLV Event is an opportunity for qualified community members to participate in setting the Initial Baseline Value (IBLV). A total of 340 ETH capacity (roughly $1M at time of writing) will be made available. The event will begin on first day of Blast mainnet launch, and last for 24 hours.

During this time, qualified users can deposit ETH up to their maximum allocation. Right after, the contract executes a bulk purchase of YES tokens against the Baseline pool, and then distributes those tokens, pro-rata.

How to qualify

To make conditions as fair as possible, the IBLV event will allocate 228 ETH, or 67% of total, to qualified community members and 112 ETH, or 33%, to Jimmy Stimmy Recipients.

500 community members can qualify for an equal allocation of 228 ETH in one of two ways:

1. Play Base Invaders game to get Jeet Slayer Discord role (100 spots)

2. Be based to get Based Discord role (400 spots)

In addition, if you are a Jimmy’s Stimmy Recipient (see Jimmy’s Stimmy Plan for more), you can qualify for a pro-rata allocation of the 112 ETH by minting an NFT.

Community members can increase their total allocation by having multiple roles.

Opportunity 1: Play Base Invaders (100 spots)

Help the protocol defend the Baseline Value (BLV) against jeets! Play the game at play.yes.money, slay the jeets, and secure your spot in the IBLV Event. If you score in the Top 100, you will automatically get a Jeet Slayer role in Discord. There is a caveat, however: you can lose your role and qualification if someone out-scores you anytime before Blast L2 launch. You can continue playing an unlimited number of times.

Opportunity 2: Be Based (400 spots)

Based individuals embody the ideals we believe in. These are the people who are excellent to each other, extend help without expecting anything in return, and are genuinely interested in what Baseline has to offer. The team will grant the Based role to community members who believe in our vision, drive awareness and engagement to the protocol (e.g. write threads, videos), contribute creatively (e.g. sick graphics, memes), and/or add good vibes in the community server.

Opportunity 3: Mint Jimmy Stimmy NFT (1,146 spots)

If you are a Jimmy Stimmy Recipient, you can qualify by minting the Jimmy Stimmy NFT before the Blast L2 mainnet launch. The NFT mint link is here:

https://app.niftykit.com/collections/jimmy-stimmy

To see a list of all wallet addresses that can mint the NFT, see:

https://gist.github.com/basehunter69/547f93f686a4d38bce08c48ac7635d10

Example

• 500 community members qualify for the 228 ETH allocation. Each person can deposit a maximum of ~$1,333.33 (denominated in ETH) into IBLV contract.

• Only 100 community members qualify for the 228 ETH allocation. Each person can deposit a maximum of ~$6,666.66 (denominated in ETH) into IBLV contract.

• Every Jimmy Stimmy Recipient claims the NFT. Top recipient can deposit a maximum of $58,752 (denominated in ETH) into IBLV contract.

Timeline

1. Now until Blast launch - IBLV Event details shared. Opportunities to qualify begin.

2. First day of Blast launch - Snapshot is taken. IBLV event begins. Qualified users deposit ETH.

3. 24 hours later - Deposits close. YES token goes live.

Next Steps

• Play the game - https://play.yes.money

• Be based in Discord - https://discord.gg/baseline

• Be based on Twitter - https://twitter.com/baselinemarkets

• [if Jimmy Stimmy recipient] Mint NFT here - https://app.niftykit.com/collections/jimmy-stimmy

Jimbo was a proof-of-concept designed to test the limits of onchain liquidity. This experiment was cut short when a hacker thrust the protocol into a precarious state with the theft of 4,048 ETH. In this dark moment, most teams would’ve given up and, under the guise of anonymity, disappeared into the ether. We are not that kind of team.

The months that followed were characterized by uncertainty and non-stop grind to rebuild the system from scratch. What gave us purpose during this time were the early signs showing that the mechanism worked: liquidity was rebalancing and the floor was moving up. What arose was a deeper desire and renewed purpose in pushing DeFi forward, dismantling previously established patterns in markets and tokenomics. 9 months from that point, we return with a system that we believe will change DeFi forever.

Make no mistake: we're not just rebuilding; we're reinventing. Using lessons learned from Jimbo, we’ve rethought the mechanisms from the ground up, written extensive tests and simulations, and engaged with auditors specializing in liquidity systems. We are confident that, with the community's support, we will redefine what’s possible with onchain liquidity.

Introducing Jimmy’s Stimmy Plan

Whereas JIMBO directed team fees to the team multisig, Baseline Protocol will share team fees equally with a community-owned contract called Jimmy’s Stimmy. Hack victims will be able to claim their pro-rata share from this contract.

Hack victims and their pro-rata allocation are defined as everyone who held $TURBOJIMBO and/or $ULTRAJIMBO at block number 95144404 (one block before exploit block).

Team fees come exclusively from liquidity rebalancing. While the fees are in Baseline token (ticker TBD), the contract will automatically borrow backing and recipients will receive pure ETH. This has the dual benefit of 1) taking token supply off-market (deflationary) and 2) avoiding any impact on market premium.

Not stimulated yet? A total of 4,048 ETH was lost in the exploit but the stimmies will continue streaming fees until a total of 6,841 ETH is paid to the contract, representing a 69% surplus for every hack victim on completion. So as not to dilute the repayment, Jimbo team wallet will be excluded.

To learn more about what liquidity rebalancing is and how the fees are calculated, check out our docs. The general idea is that more volume translates to more fees which translates to quicker repayment.

Timeline

Jimmy’s Stimmy contract will be deployed at launch (beginning of March). Users will be able to navigate to https://claim.baseline.markets, connect impacted wallets, and claim pro-rata at any time.

NOTE: The claim page is not live yet. We will update when Baseline goes live.

Next Steps

• Follow Baseline on Twitter and RT when we tweet

• Join the convo on Discord

• We’ll be sharing plans for presale this week (week of Feb 12)

• Prepare to participate in launch of Baseline (beginning of March). Remember: more volume through Baseline translates to more fees which translates to quicker repayment.

In case you missed it, this is what we discussed in the community call on Jan. 18th, 2024!

TL;DR

• We’re going to audit feb5, launching in Feb, CAN YOU GUESS THE CHAIN!

• Lots of new improvements to the product, read the docs for details https://docs.baseline.markets/

• Will share the repayment plan soon

• More community calls will be held

Project Overview and Development

• Contracts are mostly written, undergoing testing, with an audit scheduled for next week.

• The launch timeline is anticipated around mid to late February.

• Mechanics, features, and improvements of the project were discussed.

• Token mechanics, liquidity, and the tax-free structure were explained.

• Lending from the Uniswap pool was introduced.

• Read the docs for more details: https://docs.baseline.markets/

Refund and Hack Investigation

• Community questions on the hack and potential repayments were addressed.

  1. Question: What is the status of the hack investigation, and are there any updates on potential repayments?

     Answer: The hack investigation is ongoing, and there is active communication with the Department of Homeland Security (DHS). Funds were moved into Tornado Cash around September, and a snapshot of users holding Jimbo has been taken for potential future repayments. The team is working diligently to address the situation.

  2. Question: How are security measures being improved to prevent similar incidents in the future?

     Answer: Security measures, including audits and simulations, are being implemented. The team is learning from the hack and is committed to enhancing the security of the project. Ongoing efforts include collaborating with experienced auditors to ensure a robust security framework.

  3. Question: What can the community expect regarding potential repayments, and how will users be informed?

     Answer: While specific details on potential repayments are not provided, the team is actively working on communication channels. Updates on potential repayments will be shared through official channels soon!

Launch Details and UI Sneak Peek

• The launch plan was discussed, aiming for a fair launch without a private sale.

• A community presale possibility to prevent bot interference was considered.

• UI details, including how the floor and premium will be displayed, were covered.

• A sneak peek of the UI integrating trading view was provided.

Lending Mechanism and Security Measures

• Clarifications on lending mechanics and its impact on circulating supply were provided.

• Invariants and simulations to ensure protocol stability were discussed.

• The introduction of experienced auditors for enhanced security was mentioned.

• Learnings from previous versions and continuous improvement were highlighted.

Presale Considerations and Questions from the Community

• Consideration of a community presale to mitigate sniping issues was discussed.

• Discussion on launch preparations, invariants, and possible strategies for participants.

• Additional community questions about presale considerations and strategies were addressed.

Moving forward, we'll be more active, sharing simulations, test results, and preparing for launch. Stay tuned for updates 🫡

Twitter: https://twitter.com/BaselineMarkets

Discord: https://discord.com/invite/baseline

Docs: https://docs.baseline.markets/