Basis team designed a system that target price stability. Their premise is that volatile cryptocurrencies are not suitable for many day-to-day applications.
In their white paper co-founders Nader Al-Naji, Josh Chen and Lawrence Diao outline a smart three-token system that besides the core Basis coin, uses bond and share tokens to expand and contract coin availability. This systems intends to execute monetary policy towards price stability.
Other interesting topics are use cases, exchange rate oracles and a revision of earlier attempts of stable coins from earlier teams.
Basis is a clear step away from earlier stablecoins such as tether, for instance. Perhaps too ahead of our time, though; great to think of CPI and game theory to assess fair exchange rate.
But does quantitative monetary policy when dealing with mainly speculative holders? In a pre-mainstream scenario would Basis interest rate absorb a FOMO driven buy?
If market funding is a sign of trust, Basis may have good answers to above. They reportedly raised USD 133 million from VC investors such as Andreessen Horowitz, Bain Capital Ventures, Digital Currency Group, Distributed Global, Foundation Capital,
INBlockchain, Lightspeed, Pantera Capital, Valor Capital and many others.