Baskets

Bao Basket tokens provide low-risk, diversified automated portfolio exposure to crypto assets.

Archived products have been sunset by the dao & receive no further updates - use them at your own risk.

A Basket token represents a group of underlying assets. Baskets give users:

• Low risk through diversification

• Automated portfolio management

• Improved capital efficiency

Baskets reduce gas fees, impermanent loss, and tax events. V1 focuses on community-governed baskets. Governance controls composition, rebalancing, and yield strategies.

Future versions will enable custom user baskets with customizable rebalancing and yield farming.

Issuing Baskets

When issuing new Baskets, deposited tokens buy the underlying assets. These deposits go into yield farms, then the yield-bearing tokens get deposited into a vault.

Issuing requests over-collateralization to allow for slippage. Unused deposits are returned. Baskets reflect performance of underlying token values and yields.

Redeeming

Redeeming Baskets returns the proportional share of underlying tokens. Users can choose to redeem into the original asset and sell underlying tokens.

Pricing

Baskets are backed by the underlying token values. Divergence from underlying value creates arbitrage opportunities.

If Basket price > underlying value, issue more Baskets, sell for profit.

If Basket price < underlying value, buy Baskets, redeem for profit.