TECHNICAL DOCUMENTATION
BASED Protocol Whitepaper
A comprehensive guide to the institutional-grade DeFi fund with automatic token buyback mechanisms
Table of Contents
SECTION 1
Executive Summary
BASED Protocol is an institutional-grade DeFi fund built on Solana, offering tiered investment strategies ranging from conservative (10-12% APY) to aggressive (30-100%+ APY). The protocol combines traditional fund management principles with innovative tokenomics to create sustainable value for both investors and token holders.
Key Features
- Multi-Tier Strategy: Three risk profiles (Conservative, Aggressive, Life Changing) to suit different investor preferences
- Auto-Buyback Mechanism: Protocol automatically purchases $BASED tokens with investor deposits, creating constant buy pressure
- Institutional Strategies: Deployed across Kamino, Jito, Meteora, and other audited Solana protocols
- Deflationary Token: 50% of protocol revenue used for buyback, with 25% burned and 25% distributed to stakers
The protocol solves a critical problem in DeFi: how to provide professional fund management while creating sustainable token value. By requiring higher tiers to hold $BASED tokens and implementing a revenue-based buyback-and-burn mechanism, BASED creates aligned incentives between fund performance and token price.
SECTION 2
Protocol Overview
How It Works
- User Deposits USDC: Investor connects wallet and deposits USDC into chosen tier
- Auto-Buy $BASED (if applicable): Protocol purchases required amount of $BASED from market and locks to position
- Deploy to Strategies: Remaining USDC allocated across curated yield strategies
- Compound & Earn: Yields accrue automatically, withdrawable anytime with tier-specific fees
Yield Sources
- Kamino Finance: USDC lending (6-9% APY)
- Jito Staking: SOL liquid staking (6-8% APY)
- Meteora: Liquidity pools and dynamic vaults (10-30% APY)
- Advanced Strategies: Leveraged farming, options, perpetuals (varies)
SECTION 3
Investment Tiers
Conservative
Target APY: 10-12% | Risk: Low
Designed for capital preservation with stable yields through USDC lending and low-volatility liquidity pools. No $BASED requirement makes this the entry-level tier.
Aggressive
Target APY: 15-20% | Risk: Medium
Balanced risk-reward combining Jito staking, Meteora LPs, and protocol yields. Auto-purchases 10,000 $BASED tokens.
Life Changing
Target APY: 30-100%+ | Risk: High
Maximum yield potential through leveraged strategies and advanced DeFi protocols. Auto-purchases 50,000 $BASED tokens.
SECTION 4
Tokenomics
Supply & Distribution
Buyback & Burn Mechanism
50% of all protocol revenue (deposit fees + exit fees) is used to buy back $BASED tokens from the open market.
Burned Forever
Permanently removed from circulation
Staking Rewards
Distributed to $BASED stakers
Deflationary Mechanics
- Continuous Buybacks: Protocol revenue creates constant buy pressure on $BASED
- Permanent Burns: 25% of bought tokens removed from supply forever
- Staking Incentives: Holders earn passive income by staking $BASED
- Supply Reduction: Circulating supply decreases over time as protocol grows
SECTION 5
Security & Audits
Smart Contract Details
4DwCVbdc5AxpPsVULdpATygFEJrwT87Zf8L6CrbfBmKdSecurity Measures
- Anchor Framework: Industry-standard Solana development framework with built-in security features
- Non-Custodial: Users maintain control of their funds at all times
- Open Source: Code available for community review and verification
- PDA Architecture: Program Derived Addresses for secure account management
Audit Timeline
Q1 2025 - Security Audits
Professional smart contract audits scheduled with leading blockchain security firms. Full audit reports will be published before mainnet deployment.
Q2 2025 - Mainnet Launch
Following successful audits and any necessary fixes, protocol will deploy to Solana mainnet with full security guarantees.
SECTION 6
Roadmap
Pump.fun Token Launch
December 3rd, 2025
- $BASED token goes live on Pump.fun
- Fair launch with no presale or VCs
- Community building and marketing campaign
- Protocol website and documentation launch
Raydium Graduation
Target: $69K Market Cap
- Graduate from Pump.fun to Raydium DEX
- Enhanced liquidity and trading volume
- DEX aggregator listings (Jupiter, etc.)
- Broader market exposure and accessibility
Protocol Activation
Q1 2026
- Smart contract audits completed
- Full ETF protocol launches on mainnet
- USDC deposits and withdrawals enabled
- All three investment tiers activated
- Buyback & burn mechanism goes live
Expansion & Growth
Q2 2026 and Beyond
- Additional investment tiers and strategies
- Cross-chain expansion (Ethereum, Arbitrum, etc.)
- Governance token and DAO implementation
- Additional yield strategies and partnerships
- Mobile app development
⚠️ Legal Disclaimer
This is not financial advice. The information provided in this whitepaper is for educational and informational purposes only and should not be construed as financial, investment, legal, or tax advice.
No Guarantees: Target APYs mentioned are estimates based on historical DeFi protocol performance and are not guarantees of future results. Actual returns may be higher or lower and can fluctuate significantly.
High Risk: Cryptocurrency and DeFi investments are highly volatile and carry substantial risk. You could lose some or all of your invested capital. Market conditions, smart contract bugs, protocol exploits, and other unforeseen events can result in total loss.
Only Invest What You Can Afford to Lose: Never invest money you cannot afford to lose entirely. Do your own research (DYOR) and consult with qualified financial advisors before making any investment decisions.
Regulatory Risk: Cryptocurrency regulations vary by jurisdiction and are subject to change. You are responsible for ensuring compliance with laws in your country of residence.
Last Updated: November 2025 | BASED Protocol | © 2025 All Rights Reserved
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