Basis Cash
CollapsedStablecoin · $BAC · born 2020 · ✝ 2021
Resurrected a dead stablecoin design that died the same way.
Basis Cash revived the abandoned Basis seigniorage stablecoin as a multi-token system of BAC, shares, and bonds. The BAC token traded persistently below its $1 peg and the project faded, with a co-founder later revealed to be linked to Do Kwon.
- Peak
- seigniorage-share hype
- Cause
- Collapsed
- Year of death
- 2021
☠️ Cause of death
The seigniorage and bond mechanism failed to defend the peg once demand cooled, so BAC stayed below $1 indefinitely and the token's reflexive incentives unwound.
📓 Lessons left behind
- —Seigniorage stablecoins lack a hard floor under the peg.
- —Reviving a design that already failed rarely fixes the flaw.
- —Bond-and-share incentives collapse when growth stalls.
🌱 The idea that survived
Collateral-backed stability
Pushed the market toward over-collateralized and reserve-backed stablecoins over purely algorithmic ones.
#stablecoin#algorithmic#depeg#seigniorage