Basis.markets — recap and 2023 outlook
This article describes the origins of Basis Markets and what's expected for 2023.
As we are near the launch of the BTX, it’s worth looking back on everything that’s brought the project here, and pave the path forward. This article aims to do just that.
Our flagship products are the Basis Trade Engine (BTE) and the eagerly awaited Basis Trade eXecution (BTX). The BTE is a web3 application which streams data from top crypto exchanges, and produces real-time delta-neutral trade opportunities - along with detailed insights.
The BTX, which is in its final stages of development, will expand on the BTE’s functionality - offering efficient execution of basis trades in only a few clicks, taking the ‘guesswork’ out of delta-neutral trading.
Basis Markets has been working hard to ensure that the BTX is launched as soon as possible to provide it’s users with:
• Utility: expanding the existing utility of the token market
• Analytics: highlighting opportunities for yield via
• Automation: optimising the efficiency of delta-neutral trade execution
• Compliance: complying with regulations, with user-funds remaining in their own custody
• Security: keeping funds secure through high-grade API key storage
The journey so far
It’s been quite the journey to get Basis Markets to where it is right now, in December 2021, Basis launched the Basis Trade Engine – providing users with a delta-neutral opportunity aggregator.
Since then, the crypto market has shifted from an unprecedented bull market into a bear market in a matter of months and the regulatory frameworks surrounding the space are evolving more rapidly than ever.
Basis Markets has adapted and will survive! Let’s take a look at the journey so far:
Launching the Basis Trade Engine
Basis Markets was born out of the idea that cryptocurrency market data is highly fragmented. To aggregate data and scan for opportunities would be an immense edge over other market participants, particularly in the realm of delta-neutral strategies.
The Basis Markets Trade Engine (BTE) opened for public access in Q4 2021 to holders of the Basis Markets NFT, and has been live ever since.
To this day, traders are taking advantage of our industry-leading data streams and aggregation to identify the best delta-neutral strategies on centralised and decentralised crypto exchanges.
We have an educational video series on using the BTE.
NFT Quick Facts:
- NFTs were issued at the price of 8 SOL
- 4,000 NFTs were sold, granting holders access to the Basis Trade Engine, as well as our community of like-minded traders
Building on the initial success of the Basis Trade Engine (BTE) the DAO voted to develop a new product in 2022. Work began with the issuance of the $BASIS token in December 2021 and the hiring of an extensive development team to deliver through 2022.
The proposed product was designed to allow users to extract yield from decentralised markets using automated smart contracts rather than manually executing their trades.
The product was built and ready to launch in the Summer of 2022, and was successfully deployed to the Solana Development Network for testing by users.
DAO framework formalisation
The project was launched as a DAO and, since it’s launch, NFT holders have had control over the direction of the project. This was designed to promote the decentralisation of the project and give power to the community in decision making.
To formalise the rules, regulations, and processes governing the DAO, a framework was developed during Q1 2022 by members of the project team and members of the NFT community collectively. After much discussion within the community, this was approved by a DAO vote on April 1st, 2022.
This framework set out the details of the DAO’s governance and will continue to be used going forward.
By Q2 2022, Basis Markets had successfully hired quantitative analysts, UI/UX designers and data scientists to build and deliver the new project in mid-2022 - as per the original project roadmap. In May, the basis.markets brand was re-imagined to what you see today.
During Q2 of 2022, the crypto community started facing new attention on the regulatory front. Basis sought advice on the topic to ensure that the project was travelling in a direction that was compliant with current and potential future regulations.
The results of investigation and advice surrounding crypto regulation, highlighted that the new developments posed significant consequences for the project and its stakeholders, introducing blockers to the originally proposed decentralised architecture and tokenomics - it would no longer be viable to deliver on the original proposal.
Fortunately, a road forward was developed in accordance with the DAO framework, that complies with the new regulatory requirements.
By June 2022 the DBLP core infrastructure had been completed, testing was a success and the technology was ready for use. However, the proposed DBLP model no longer became viable with the aforementioned regulatory developments. To ensure the sustainable development of basis.markets, DAO proposal #004 was made and considered pivoting the project development efforts to a new product offering, the BTX.
Introducing the BTX
Throughout the first half of 2022, basis.markets had built a large range of infrastructure and execution tools which could be leveraged for a new product, but the question was, what exactly?
DAO proposal 004 suggested an execution engine be built, which would enable token holders to execute trades in their own wallets on centralised exchanges (CEX). This proposal was approved in September 2022 and, with that, the BTX was born paving the path forward for the project.
DAO proposal 004 brought forth a suggested tokenomics structure, along with the BTX. With the proposal approved in Q3 2022, it was decided that the BTX would move forward.
The BTX will launch in early 2023 to provide users information about delta-neutral trades, the BTX will increase the speed and automation of execution, maximising the efficiency of trading delta-neutral on centralised exchanges.
Importantly, the BTX also provides utility to $BASIS holders, whilst maintaining compliance in an ever-evolving regulatory time. The BTX supports Binance out of the box, with the plan to add more exchanges over time.
As a reminder, the Basis Trade eXecution (BTX) provides real-time data to allow its users to spot basis trade opportunities, as well as execution of those basis trades.
With the BTX, users may:
- Login via the Phantom wallet
- Connect via API to supported CEX accounts.
- Filter & explore yield opportunities.
- One-click execution of trades across exchanges.
- Simple fee system that deducts trading fees automatically.
- View profits & trade health in dashboard.
- Manage open trades directly from BTX.
Token utility: $BASIS will be required to execute trades and for optimal usage of the BTX platform. Each $BASIS token used for actions on the BTX will be burnt, never to enter the circulating supply again.
As we close in on the launch of the BTX, our focus is making sure the platform works as intended. This means catching last minute bugs and making sure it provides a completely secure and polished experience for users to execute their delta-neutral trades through.
As always, community input is key to the success of the project, so please join the discord and share your thoughts, suggestions, and DAO proposals with the rest of the community to continue shaping the direction of basis.markets through 2023.