XBase Whitepaper

Since the birth of BTC, there have been tens of thousands of tokens in cryptocurrencies around the world. For many investors, cryptocurrency is a future value investment. They believe that the market value of the entire crypto market is growing, but a single token investment does not represent the direction of the entire crypto market. For cryptocurrency investors, it is almost impossible to manage tens of thousands of digital assets at the same time. How to correctly and intuitively show the trend of the entire crypto market? By using the elastic supply protocol, it is possible to create a comprehensive asset related to the cryptocurrency market by linking the price to a value: the total market value of all cryptocurrencies. This is a highly concentrated synthetic asset, which turns investors’ dreams of managing the entire cryptocurrency market into reality.

1. Introduction

XBASE is a synthetic crypto asset whose price is linked to the crypto market cap(cmc), with a ratio of 1:1 trillion. The reason for the birth of XBASE is to test the use of a decentralized currency to associate with the comprehensive assets related to the cryptocurrency market, and to maintain the currency price at a stable price through the elastic supply protocol. This price can accurately reflect the current total market value of the entire cryptocurrency. The protocol uses Rebase to increase or decrease the balance of all tokens in proportion to make the price of XBASE equal to the target price.

2. Elasticity mechanism

XBASE is a synthetic encrypted asset whose price benchmark reflects the total market value of the current crypto market. XBASE uses the total market cap of the entire crypto market at a ratio of 1:1 trillion as its target price.

For example: Current total crypto market cap CMC=$500,000,000,000

The target price of XBASE TP=CMC x 0.1¹²

Target price = $0.5

If the current market price of XBASE is $0.4, which is 10% lower than the target price, in order to make the current XBASE price equal to the target price, an elastic mechanism must be used to reduce the current circulation of XBASE tokens. Conversely, if the current market price of XBASE is $0.6, which is 10% higher than the target price, an elastic mechanism is needed to increase the current circulation of XBASE token.

The function of the elastic mechanism is to ensure that the BASE market price (MP) is equal to the target price (TP).

When market price (MP) = target price (TP)

XBASE is in equilibrium.

Its price perfectly reflects CMC.

When the market price (MP) ≠ target price (TP)

XBASE is in an unstable state.

When XBASE is in an unstable state, if its market price cannot perfectly reflect the crypto market cap, an elastic mechanism must be implemented to achieve an equilibrium state.This is achieved through the elastic supply protocol.

3. Balance mechanism

The balance mechanism is the ultimate manifestation of the elastic supply mechanism. The elastic supply mechanism is the process, and balance mechanism is the result. The elastic supply mechanism creates a lot of profitable opportunities, encouraging holders to sell after expansion, and speculators to buy after contraction. Only by continuous selling after expansion and buying after contraction, the XBASE price will stay within the target price range.

For example, on the first day you hold 100 XBASE tokens at a price of 0.5 USD, CMC=$500,000,000,000, and the target price is 0.5 USD. Market price=Target price, total assets $50.

The next day, the market price of XBASE is $1, the target price is still $0.5, and the market price is 100% higher than the target price. At this time, the number of XBASE you hold becomes 200, and the total assets are $200. At this point, your total assets have increased by $150.

This arbitrage opportunity encourages holders to sell as soon as possible. When the holder sells the profit, the price will return to the target position to maintain the price balance.

The same reasoning: on the first day you hold 100 XBASE tokens at a price of 0.5 USD, the total market value of the current crypto market cmc=$500,000,000,000, and the target price is 0.5 USD. Market price = target price, total assets $50

On the second day, the market price of XBASE is US$0.25, the target price is still US$0.5, and the market price is 50% lower than the target price. At this time, the number of XBASE you hold becomes 50, and the total assets are reduced to US$12.5. If you act quickly at this price, you can buy more XBASE. When speculators buy in this period, the price will return to the target price and the price balance will still be maintained.

XBASE sells arbitrage when the currency price is higher than the target price, and buys when the currency price is lower than the target price to achieve the XBASE market price equal to or close to the target price. This is the balance mechanism of XBASE.

4. Economic model

XBASE total circulation: 6.5 million, of which 500,000 is used to add initial liquidity, 6 millions are produced by liquidity mining, 100,000 tokens are produced every day, halved every 30 days, geyser will produce extra 5% for team reward. No pre-sale, no team reservation, complete community governance.

5. Achieving consensus

The purpose of XBASE was to reflect the total market value of the entire cryptocurrency market. Of course, Can it truly and perfectly show the total market value of the entire crypto market, and whether its price trend can be consistent with the trend of the total market value of the crypto market? Is the process of community consensus. It has been a long 10 years for BTC to establish a strong consensus. The formation of the XBASE consensus also requires a long process.XBASE will accelerate the formation of this consensus by encouraging investors to cash out or speculators to buy at a low price.

The balance mechanism is the purpose of the elastic mechanism, and consensus is the ultimate goal of the elastic mechanism and the balance mechanism.

6. Conclusion

XBASE is intended to function as a comprehensive asset, representing the speculative behavior of the crypto market cap(CMC). This is achieved through elastic supply characteristics and elastic supply protocol, encouraging every participant to pump the XBASE price to reach it’s target price.

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