What is Rebase?

Rebase is the first rebasing token on Base. Rebasing is a concept introduced by Ampleforth in 2017, but gained popularity during the DeFi Summer bull run of 2020. It refers to the fact that the token supply is elastic, and changing to market price. This concept means price volatility is shifted to supply volatility, allowing for a new generation of DeFi products to be built on top.

What is rebasing?

Rebasing is when the total supply of the Rebase token changes based on the price of Rebase over the previous 24 hour period.

How often does the Rebase token rebase?

The Rebase token rebases at 2:00am UTC time every day. If the price of Rebase for the previous 24 hour period is outside of the equilibrium band, the supply will change (grow or shrink). If the price of Rebase for the previous 24 hour period is within the equilibrium band, rebasing will result in no change to the supply.

What can the Rebase token be used for?

Rebase is a digital commodity money, like Bitcoin, so it can be used in many ways Bitcoin is: as an uncorrelated asset to the wider market, as a liquidity backstop for a protocol, as a medium of exchange for DeFi. Rebase is also supply elastic like Ampleforth, because of this innovation it can be used for innovative things such as a liquidity layer on protocols similar to Balancer, allowing for no-impermanent-loss liquidity pools, or as a backstop for flatcoins. The use cases are quite endless and only require DeFi’s imagination!

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