# Token Design Prospect is partnered with [Baseline](https://www.baseline.markets/#Features) an automated tokenomics engine for ERC20 tokens that utilizes a dynamic supply model and market making strategy that provides ERC20 tokens persistent on-chain liquidity and non-liquidatable leverage. Prospect chose to partner with [Baseline](https://www.baseline.markets/#Features) for three key reasons: 1. [**Compounding**](https://prospect-labs.gitbook.io/prospect/usdchamp/token-design/compounding): [Baseline](https://www.baseline.markets/#Features)'s market making strategy naturally grows the value of $CHAMP over time through a series of liquidity operations, which makes it suitable for transactions as it appreciates over time. 2. [**Leverage**](https://prospect-labs.gitbook.io/prospect/usdchamp/token-design/leverage): [Baseline](https://www.baseline.markets/#Features) has a built-in decentralized lending facility that enables $CHAMP token holders to borrow assets by using their $CHAMP tokens as collateral. Given the [Baseline](https://www.baseline.markets/#Features) token architecture guarantees an intrinsic value for each $CHAMP token, the protocol allows holders to borrow at a high LTB (loan-to-backing) value, for a small fee and with no risk of liquidation. 3. [**Market Making**](https://prospect-labs.gitbook.io/prospect/usdchamp/token-design/market-making): [Baseline](https://www.baseline.markets/#Features) market making operations are trustless and deterministic, anyone is able to trigger liquidity rebalances and the underlying liquidity structure changes in a predetermined pattern. This reduces potential information asymmetry gained around liquidity rebalances, thus maintaining a fair, predictable and transparent market. More on each feature in the following subsections. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://prospect-labs.gitbook.io/prospect/usdchamp/token-design.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.