Cryptocurrencies have been too volatile for mainstream use. Loans, salaries and other basic financial contracts are poorly served by volatile currency.
Stable currency isn't available in much of the world. In many developing countries, the most stable currency available can devalue at a rate of 10% per year or more.
Basis is designed to maintain a stable value and serve as a medium of exchange accessible to anyone with an internet connection.
When demand is rising, the blockchain will create more Basis. The expanded supply is designed to bring the Basis price back down.
When demand is falling, the blockchain will buy back Basis. The contracted supply is designed to restore Basis price.
The Basis protocol is designed to expand and contract supply similarly to the way central banks buy and sell fiscal debt to stabilize purchasing power. For this reason, we refer to Basis as having an algorithmic central bank.
The team members’ backgrounds span Google Search, Ads, and Research, D. E. Shaw & Co., Tower Research Capital, Hudson River Trading, Goldman Sachs, Bridgewater, AngelList, and more.
The founders attended Princeton together and all graduated with degrees in computer science summa cum laude. After college, two of the founders worked together at D. E. Shaw, then at Google before leaving to start Basis.