🧩Token Design

Designed to appreciate over time!

Prospect is partnered with Baseline 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 for three key reasons:

1. Compounding: Baseline'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: Baseline 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 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: Baseline 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.