They are incredibly speculative assets and ideally, only experienced and smart investors who practice proficient risk management should participate. Similar to futures markets, the upside exists when the market is in an uptrend, and you tend to gain excellent traction.

The same effect is seen in a downtrend; you lose price value and lose the amount of total holding as each rebase occurs setting a spiral of negative rebases. This is the worst-case scenario in which the supply changes are unable to increase demand and re-stabilize the price and market cap.

The Future of Elastic Supply Tokens

While the thought of making insane gains is quite stimulating and interesting, that should not be the sole intention when purchasing rebase token. Investors are advised to fully understand what they are investing in.

Are rebase tokens profitable

The Withdrawal Tax timer and Withdrawal Tax penalty ensure that the lottery mechanism functions efficiently. To prevent the whales from swooping down at the last minute and winning the lottery, the tokens need to be deposited for 14 days.

The longer the token remains in the game the more the chances are of winning.

The Ultimate AMM DEX

To aid in decentralized trading the Rebase Finance project team devised RebaseSwap an ideal Automated Market Maker (AMM) and a Decentralized Exchange (DEX). Typical AMM DEX receives a percentage of token for every transaction and later sells that token in the market causing depreciation of the currencies.

RebaseSwap as a service (RaaS) caters to this issue by allotting the 0.2% trading fee to the owner’s wallet. The owner may add it to liquidity pools or receive a fee reward in case the owner has no wallet.

What is an Elastic Supply Token

Decentralized Finance (DeFi) became really big during Q4 of 2020, ushering many new ideas and innovations never seen before. DeFi appeals to many, leveraging blockchain technology to shift mainstream financial services to what is now seen as user-controlled financial systems.

The implementation of smart contracts removes the need for traditional middlemen.
One interesting token system that has come out of DeFi is the utilization of Elastic Supply Token models. These have become increasingly popular on DeFi platforms, now coined as algorithmic stablecoins.

This type of token is engineered through smart contracts, where the supply of such token is not fixed as it adjusts routinely.
Depending on its model, unlike the fixed supply of Bitcoin and the unlimited supply of Ethereum, these tokens have a dynamic supply.

Tokens of Babel (TOB)

Tokens of Babel was also created by the Antiample team.

Contract Code: https://etherscan.io/address/0x7777770f8a6632ff043c8833310e245eba9209e6#code

function rebase(uint256 epoch, uint256 supplyDelta) external onlyOwner returns (uint256) { if (supplyDelta == 0) { emit LogRebase(epoch, _totalSupply); return _totalSupply; } _totalSupply = _totalSupply.sub(supplyDelta); if (_totalSupply MAX_SUPPLY) { _totalSupply = MAX_SUPPLY; } _gonsPerFragment = TOTAL_GONS.div(_totalSupply); emit LogRebase(epoch, _totalSupply); return _totalSupply; }

The code is similar to AntiAmple, similar onlyOwner modifier, but here’s a small difference.

At the point of writing, when you check the owner of the contract, it is actually still owned by the owner.

If the supply cap is // ever increased, it must be re-included. // _totalSupply = TOTAL_GONS.div(_gonsPerFragment) emit LogRebase(epoch, _totalSupply); return _totalSupply; }

How rebase works?

Basically, Ampleforth’s smart contract changes the code of balanceOf method. They just need to make a contract call to rebase in order to change the total ownership that you have in the token.

In this case, to call the rebase method, all you need is just epoch which is date time for logging and supplyDelta which is to add or remove supply of the token.

As you can see onlyMonetaryPolicy role can call this rebase function.

// Used for authentication address public monetaryPolicy; /** * @param monetaryPolicy_ The address of the monetary policy contract to use for authentication.
These thoughtful policies prevent controlled fluctuations in the token price.

Rebase Exclusive Club (REC)

It is an NFT identity pass that profits from 10% RSI profit, 50% of tokens collected from the Launchpad projects that will be airdropped to REC participants, and avail of all new offers and products by Rebase Finance. The dividend obtained by RSI will be distributed to REC holders according to the percentage of the Rebase token held by the user to the total Rebase token held by the REC.

Rebase finance is the up-to-date firm working towards getting the world of crypto widely accepted as the new invention to rule the world in the forthcoming time.

Rebase Strategic Investment (RSI)

Rebase Strategic Investment (RSI) is devised by the finance team to bring value to holders of the Rebase token.

Rebase

is a token or a protocol that adjusts circulating supply automatically or periodically in response to price fluctuations.`

Short History

So…

Last week when I was skimming through some crypto news an article grabbed my attention which is about a new token project upcake(UPC) ( ofcourse we are witnessing hundreds of launches every single day 😅 ) & about it’s trend in coinmarketcap and twitter

That one word which grabbed my attention is rebase (bcoz it was new for me ).So, I went through the project whitepaper in detail, and found simple explanation for that.

MonetaryPolicy() { require(msg.sender == monetaryPolicy); _; }

In the contract data, it seems like the address is set to 0x0 which is not the case when you use readAsProxy feature on Etherscan on the main proxy contract.

https://etherscan.io/address/0xd46ba6d942050d489dbd938a2c909a5d5039a161#readProxyContract

So the monetoryPolicy address is set to https://etherscan.io/address/0x1b228a749077b8e307c5856ce62ef35d96dca2ea where in this case, it is an oracle smart contract called Rebaser.

By using an oracle like Chainlink, Ampleforth can create a trustless manner of rebasing.

Singapore, April 27, 2022 (GLOBE NEWSWIRE) — Rebase Finance ($REBASE) is excited to announce the launch of its high APY-delivering auto-staking and auto-compounding protocol to assist users in generating revenue from their investments.

Powered by BNB Chain, Rebase Finance offers auto-staking and auto-compounding features. The project aims to maximize the profit gained by token holders by both supply and treasury growth.

Taxes collected from transactions of Rebase Token will cause a surge in treasury balance that not only increases but also stabilizes the price of the token. To avoid heavy fluctuations, the firm has created utilities for the token.

As a result, increasing your holding times can significantly reduce your tax rate for capital gains.

ZenLedger is the easiest way to track your transactions across different protocols and wallets. By automatically aggregating data, the platform computes the information necessary to complete IRS Schedule 1, IRS Schedule D, IRS Form 8949, and other forms.

You can also download your entire transaction history across wallets and exchanges.

The Bottom Line

Rebase tokens are a hot trend in the DeFi world, but there are some caveats to keep in mind. In particular, investing in these tokens involves a high level of risk and could generate several tax events.

It’s super important to know what the rebase target is for a coin with rebase mechanics before investing/buying; setting your expectations right will ensure you do not lose your funds immediately.

Elastic supply tokens are attracting a lot of attention lately, bringing with it greed and bad actors who are hell-bent on scamming unsuspecting members of the crypto community. Users are expected to watch out for all of this as bugs and funny acts are unfortunately never in short supply in the crypto space.

Overall these tokens offer a unique system that aims to trade like a commodity like money.

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