Base Protocol (BASE) is a decentralized financial (DeFi) application built on the Ethereum blockchain. It delivers a unique tokenized cryptocurrency market tracker by offering a token called BASE, whose price is pegged to the total market capitalization of all cryptocurrencies at a ratio of 1:1 trillion.
It is built on an elastic supply protocol that programmatically expands or contracts the token supply to achieve a target price equilibrium. The BASE token's price is pegged to the total market capitalization of all cryptocurrencies, exposing users to the performance of the entire crypto market.
The BASE token’s target price is one trillionth of the total market capitalization of all cryptocurrencies. When the market price of BASE reaches the target price, the token is considered to be at equilibrium.
By holding BASE tokens, users can gain exposure to the performance of the entire cryptocurrency market without needing to manage a portfolio of individual cryptocurrencies. This allows traders and investors to speculate on the crypto industry as a whole using a single token.
It is important to note that the Base Protocol and BASE token are not affiliated with the Base blockchain - a layer2 Ethereum scaling solution incubated by Coinbase and developed using Optimism’s OP Stack.
