$BASKbond Issuance

BasketDAO
2 min readApr 7, 2021

This message is sponsored by yours truly — BasketDAO Treasury 😘

The migration from DPI, and UNIV2-DPI-ETH to BDPI and SUSHI-BDPI-ETH was a success. As a thank you to everyone who stayed with us throughout the migration, you can now claim the special limited edition $BASKbond ERC-20 token on our website.

This article will explain how the allocations for $BASKbonds were calculated, and what they can be used for.

Quadratic Airdrops

Background: As we migrated both DPI and UNIV2-DPI-ETH, the rewards for each user had to be calculated in relation to the amount they staked in USD, not the amount of tokens.

Our idea for calculating the $BASKbond airdrop was inspired by Vitalik’s insightful thoughts on quadratic mechanism design. This more equally rewards all migration participants, and prevents the whales from gobbling up the lion’s share of rewards.

Instead of using the amount of USD each user contributed, we take the square root of it. This is a powerful concept to prevent concentrated wealth accumulation.

As seen in the graph above:

  • To get 100 $BASKbond (x1), a user must contribute $10,000 USD (x1).
  • To get 200 $BASKbond (x2), a user must contribute $40,000 USD (x4)
  • To get 300 $BASKbond (x3), a user must contribute $90,000 USD (x9).

This gives everyone, not just the whales, a fair shot at the rewards.

You can find the scripts used to calculate the rewards in our github repository.

What can I do with them?

You’ll soon be to stake your limited edition $BASKbond tokens to claim your share of 3000 $BASK tokens, vested over 30 days — kindly sponsored by the BasketDAO Treasury.

No need to rush though, staking rewards isn’t opened yet. We will give you plenty of notice and announcements before rewards emission begins.

Questions

If you have any questions regarding BasketDAO, please feel free to find us on discord — https://discord.gg/28ZNtj2aW5

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