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Whitepaper

Bashoswap Whitepaper

Automated Market Maker & IDO Launchpad On Cardano Ecosystem

Version 1.1
January 30th, 2022

1: Abstract

In this Whitepaper, we propose Bashoswap, an automated market maker (AMM) that will be built on the Cardano blockchain which leverages the Cardano Blockchain to enable lightning-fast trades between Cardano native tokens and also be able to have shared liquidity and a host of other new features.
We also intend to create a version 2 of our swap protocol which will include a single token pool model which will be achieved by grouping deposited Cardano native tokens into a virtual pair with the Basho Virtual USD stable coin (BVUSD), instead of using liquidity pairs.
This new Single / Mono liquidity pool protocol design will result in lower trading fees and also less capital needed to deposit for Liquidity Providers.
This means that projects can launch their token with zero capital.
Our AMM two-tiered liquidity pool design also provides safeguarding against malicious token listings and rug pulls.

2: Disclaimer

This Whitepaper is produced for educational and informational purposes only and is not intended to be used as a financial promotion. No information, data, or analysis presented are intended to form the basis of any investment decision. This document is not investment advice, solicitation of any kind nor an endorsement. Nothing in this paper should be construed as an offer or inducement to engage in any form of investing activity. This paper is not a prospectus, invitation, inducement, or proposal for investment, nor is it meant to be a sale or issuance of securities, interests, or assets.
The information in this document is provided in good faith.
The Bashoswap team expressly disclaims any and all responsibility, and readers, investors, expressly waive all claim for any direct or indirect loss or damages of any kind (whether foreseeable or not) arising directly or indirectly from:
(i) reliance on any information contained in this document or any information made available in connection with any further inquiries,
(ii) any error, or inaccuracy in this document,
(iii) any action resulting therefrom or
(iv) usage or acquisition of products.
The Bashoswap token ($Bash) is a utility token and its purpose is only to enable token holders to undertake actions within the $Bash platform. The Bashoswap token ($Bash) is not a currency and should not be considered one by holders. It must not be held or earned as a reward by any individual resident and/or citizen of a country in which holding such tokens is illegal and/or in countries that consider such tokens securities. It is the readers responsibility to know the laws relevant to their legal jurisdiction and ensure they are compliant at all times.
There are no guarantees that the Bashoswap and/or platform will succeed financially. There is no inherent monetary value associated with the Bashoswap token ($Bash). If the Bashoswap token is subsequently listed on centralized or decentralized exchanges, then there is no guarantee that the $Bash will rise in value nor have any value at all.
The Bashoswap reserves the right to require all platform participants submit verifiable identity and residence documentation at any time in order for the Bashoswap to comply with Know Your Customer and Anti Money laundering responsibilities. This includes validation of identity & residence documentation with an authorized third-party supplier, as well as ongoing monitoring.
This material does not constitute any representation as to the suitability or appropriateness of any utility asset, financial product, or instrument. There is no guarantee that investment in the $Bash Token will be profitable or will not incur loss. This information does not have regard to the specific investment objectives, financial situation, and the needs of any specific person who may view its investor materials. Investors should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this Whitepaper and should understand that statements regarding prospects may not be realized. Investors should note that security values may fluctuate and that the Token’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not a guide to future performance. Investing in any cryptocurrency involves certain risks called non-diversifiable risk. These risks include market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any specific, or diversifiable, risks associated with particular investment styles or strategies.

3: Forward Looking Statement

All statements contained in this technical document, statements made in press releases or in any place accessible to the public and oral statements that may be made by the Bashoswap team or their respective directors, executive directors or employees acting on behalf of the Bashoswap team, other than statements of historical fact, constitute "forward-looking statements." However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding Bashoswap team's financial position, business strategies, plans and prospects, and future industry prospects made by Bashoswap team are forward-looking statements. These forward-looking statements, including but not limited to statements about the $Bash token and its profitability, prospects, future plans, other expected industry trends and other matters discussed in this Whitepaper are matters that are not historical facts, but only predictions.
Forward-looking statements relate to expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These include statements relating to future actions, prospective launchpad products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.
Any or all our forward-looking statements here or in other publications may turn out to be wrong. Ultimately, we are a meme token. Our statements can be affected by inaccurate assumptions or by known or unknown present or future risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed, and they may be adversely affected by factors, including general market conditions, competitive product development, product availability, current and future branded and generic competition, federal and state regulations and legislation, service availability issues, timing of trades, patent positions, litigations, and investigations. Our actual results may vary materially, and there are no guarantees about the performance of the token. We undertake no obligation to correct or update any forward-looking statements, whether because of new information, future events or otherwise
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause $Bash’s actual future results, performance, or achievements to be materially different from any future results, performance or achievements expected, expressed or implied by such.
These factors include, but are not limited to:
a) changes in the political, social, economic, and stock market conditions or cryptocurrencies, and the regulatory environment in the countries in which the Bashoswap team carry out their respective businesses and operations.
b) the risk that the Bashoswap team may not be able to execute or implement its respective business strategies and future.
c) changes in interest rates and exchange rates of fixed currencies and cryptocurrencies.
d) changes in the anticipated growth strategies and expected internal growth of $Bash.
e) changes in the availability and salaries of employees required by the Bashoswap team to operate their respective businesses and operations.
f) changes in user behavior and preferences of $Bash Token holders.
g) changes in the competitive conditions under which Bashoswap team operate, and its ability to compete in such conditions.
h) changes in the Bashoswap team's future capital needs and the availability of financing and capital to finance such needs.
i) war or acts of international or national terrorism.
j) occurrences of catastrophic events, natural disasters and cases of force majeure that affect the business and / or operations of the $Bash team.
k) other factors beyond Bashoswap team's control.
l) any risks and uncertainties associated with Bashoswap team, its businesses and operations, the $Bash Tokens, the Token Sales, etc.

4: Background

Decentralized Finance (DeFi) is currently experiencing exponential growth in terms of its offerings and user adoption.
We saw Total Value Locked (TVL) increase from $700m to over $20bn over the past 18 months, and De-Fi applications emerged as the driving force behind building the new open financial system and ownership economy.
One of the most notable and heavily utilized instrument is Uniswap, a token exchange protocol on the Ethereum blockchain.
Its Automated MarketMaker (AMM) utilizes the constant product formula as such:
RαRβ = k
where Rα and Rβ represents the number of tokens in the reserve, and k is the constant product.
During a transaction trading ∆β amount of β for ∆α amount of α, with a percentage fee of (1 − γ) it must satisfy: (Rα − ∆α) (Rβ + γ∆β) = k (2) therefore the reserves would be updated as such:
Rα 7→ Rα − ∆α Rβ 7→ Rβ + ∆β, and k 7→ (Rα − ∆α) (Rβ + ∆β) Thus, using the constant product invariant unlocks a gas-efficient way of automated exchange on Ethereum.

5: Current Problems Plaguing The De-Fi Ecosystem

As most DEX’S like Uniswap exist on the Ethereum blockchain, there are lots of issues that makes trading tokens inaccessible for most users like high gas fees, low transaction confirmation speeds and overlapping liquidity as Many DeFi AMMs have a huge overlap in their offerings.
Bashoswap is a decentralized Cardano Project accelerator and native token swapping platform, connecting early stage Cardano innovators with early adopters.

6: Target Market

Crypto Traders – these participants can use $Bash for speculating and hedging cryptocurrency volatility. $Bash can also be used to convert cryptocurrency into fiat.
Standard Customers – these customers may want to buy $Bash as a crypto asset, for long-term holding. $Bash could be used to pay for goods and services, in the future, or as an option to participate in different launchpads. Its high volatility as an asset and its unpredictability makes it an invaluable form of speculative asset.
Companies and Private Institutions – $Bash crypto assets give institutions new opportunities for capital gains. There is free liquidity and extra earning potential from trading $Bash into fiat and vice versa. The use of cryptocurrency has become a major industry. Institutions can profit from earning from the volatility of the underlying asset, and from using the $Bash management system. At the same time, new crypto projects that invest in $Bash reinforce the Token’s reputation, which ultimately increases their profit not only in the native token, but also in the token they own by launching on our platform through the $Bash partner program.

7: Bashoswap Launchpad

Bashoswap Launchpad will be a Cardano-based IDO Platform that is designed to leverage Cardano smart contracts which was made possible after the alonzo hard fork to provide transparent, efficient, and fully decentralized fund-raising platform for Developers and projects looking to build on the Cardano ecosystem
Unlike our competitors, our launchpad will offer full support of Cardano native tokens running on Cardano Main-net and on the milkomeda sidechain and also boast of a suite of advanced DeFi tools that Blockchain startups on the Cardano blockchain need to thrive.

8: Bashoswap DEX

Bashoswap DEX is a new DeFi protocol on the Cardano blockchain that will utilize the AMM protocol for token swaps.
We will also be introducing a single token design for liquidity pools (instead of using the regular pool pairs).
This will be made possible by grouping deposited tokens into a virtual pair with the Bash Virtual USD stable coin.
Our first product is an Automated Market Maker using the Paired token liquidity pool design.
Liquidity pools are smart contracts to which Liquidity Providers (LPs) deposit funds. Once the funds have been deposited to the pool, the AMM's algorithm creates the market for the digital assets to be traded, instead of using an order book.
For example, the constant product formula used for Uniswap is
α*β = k
Where α is the amount of Token A in the pool, β is the amount of Token B in the pool, and k is a constant.
This means that the users making swaps must not change the product of Token A and Token B (the pairs reserve balance), and it is represented as the invariant k.
Each smart contract or pair manages a liquidity pool composed of the reserves of the deposited tokens.
The pool weight is allocated by the deposited reserve amounts of the reserve tokens.
Liquidity Providers can deposit an equal value of each underlying token and in exchange, receive LP tokens. The LP tokens represent shares of the total deposited reserves for both tokens in the pool.
As a Liquidity Provider, you are rewarded with the trading fees accrued from swaps/transactions made through the pool.
The fee rewards are relative to how much your LP tokens represent as a total of the deposited reserve.
The protocol determines fees; for example, each trade in Uniswap charges a 0.3% fee.
Liquidity Providers can realize their fee rewards at any time when they burn their LP tokens to withdraw their pool reserves share.

9: Liquidity Mining & $Bash Farming

Liquidity providers will be able to generate additional rewards for giving liquidity to pools.
Key pools will be incentivized with $Bash tokens.

10: Bashoswap Features

Bashoswap Launchpad
Bashoswap will be The first insured Cardano oriented launchpad Cardano projects. By utilizing Bashoswap launchpad, developers building on the Cardano Network will have an avenue to generate early support through our launchpad.
Bashoswap Launchpad Features
Decentralized accelerator and IDO platform, connecting early stage Cardano developers and our community of early adopters.
$Bash token holders who have staked a certain amount of their tokens would qualify for our tiered allocation system are guaranteed varied allocation to early sales of projects launching through our platform.
Each project that launches through our platform will contribute a certain amount to our insurance treasury, providing stake holders and investors in our community a sense of financial protection against potential project failure.
Upon The Deployment of the PAB (Plutus Application backend) auto-lock liquidity will be an optional feature for developers.
$Bash Token holders will have early access and guaranteed allocation to seed rounds, presales, and private sales of Cardano projects.
Bashoswap Decentralized Exchange
Bashoswap is a Decentralized Exchange that is designed to facilitate Token Swaps Between ADA & Cardano Native Tokens.
Bashoswap will be a decentralized automated market maker protocol that will enable traders swap and trade CNTs in a permissionless manner.
Bashoswap will follow the EUTXO protocol to create a trustless environment for the decentralized exchange of assets. The protocol guarantees that if all participants agree, the swap will take place.
On the contrary, each participant should receive their locked funds back if some of them decide not to conclude the process.

11: Bash Token

$Bash will be the native Utility token of the Bashoswap platform with several utilities.
We aim to evolve into a decentralized Autonomous Organization (DAO) where decisions are taken by $Bash token holders, based on the amount of tokens they hold.

Bashoswap Token Utility

$Bash Token will be utilized in the following ways:
Staking: Basho token Holders will be able to stake $Bash tokens to generate additional yield earned from trading fees.
Governance: Governance model allowing for stakers of Bash to participate and vote on community proposals and amendments.

12: Bash Token Distribution

The Bash Token distribution is described as follows:
Token Name: Bashoswap
Token Ticker: BASH
Max Supply: 500,000,000
Founder/Team: 10% (Locked For 18 Months)
Advisors: 3% (Locked For A Year)
Private Sale: 20% (Locked For 4 Months)
Pre-Sale: 13%
ISPO: 9%
Liquidity: 25%
Locked Treasury & Mining Reserve (For Staking & Yield Farming): 30% (3 Year Vesting Period)

13: Appreciation

Our token mechanics are structured so that there are a multitude of influences for material appreciation. Starting with growing transactions and constant onboarding of new clients we start to build a higher use for our token and a higher demand. With this kind of assistance to the velocity of our token along with its use in crypto trading, it can measurably reach its true intrinsic value.
With the growing use of the token by businesses on the platform we effectively reduce price risk relative to the dollar for all holders, setting a comfortable base for which we can assume, following price discovery on exchanges, our cryptocurrency will not fall through. This also sets the investment standard for traders to buy knowing that eventually, $Bash tokens will reach certain support levels where there is only more upside as we grow.
We encourage the reader to do its own research, and decide whether to invest in our project or not.

14: References

[1] DeFi Pulse. Feb 2018. DeFi Pulse Leaderboard https://defipulse.com/
[2] Hayden A. 2018. Uniswap Whitepaper https://hackmd.io/@477aQ9OrQTCbVR3fq1Qzxg/HJ9jLsfTz?type=view
[3] Guillermo A, Hsien-Tang K, Rei C, Charlie N, Tarun C. Nov 2019. An analysis of Uniswap markets https://arxiv.org/abs/1911.03380