Basis Cash V2 is launching with the aim of “redesign[ing] from the ground up after a deep analysis of the shortcomings of V1.”
The upgrade includes dynamic liquidity incentives instead of the static liquidity rewards from V1, consistent staking rewards to incentivize holders of the Basis Shares (BAS) governance token, and utility for the Basis Bonds (BAB) token beyond just speculating that BAC will return to peg.
Basis Cash (BAC) V1 was itself a revival of the algorithmic cryptocurrency Basis, which initially shuttered due to US securities laws and transfer restrictions. BAC and its governance token, Basis Shares (BAS), started strong immediately after launching in December, but quickly fell below peg and never recovered.
Basis Cash has also collaborated with Pickle Finance to offer BAC holders access to a new vault where they can deposit BAC to earn auto-compounded BAC rewards. The Vault is intended to support a return to the peg by buying BAC using allocated BAS rewards, and upgrading the strategy as necessary. The vault will charge no fees at launch, but plans to add profit fees in the future.