> For the complete documentation index, see [llms.txt](https://prospect-labs.gitbook.io/prospect/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://prospect-labs.gitbook.io/prospect/usdchamp/token-design/compounding.md).

# Compounding

Token design is constantly evolving. When we set out to redesign $CHAMP, we wanted to ensure three things: **Real Utility, Memeability, Robust Token Mechanics** and **Sustainable Tokenomics**.

We've been working with [Baseline](https://www.baseline.markets/#Features) to develop the most innovative gaming token that appreciates over time and is much more than just a means of transaction. Stablecoins preserve value but provide no upside, other token design and mechanics provide exposure to the growth of the protocol but don't accrue intrinsic value over time.

Intrinsic value is accumulated through the volumes and fees stored on $CHAMP smart contracts. The BLV increases when the protocol realizes profitability from LPing, liquidity rebalancing and borrows. The more transactions and price discovery, the more rebalancing and the more reserves are pulled into the BLV. In other words, as $CHAMP becomes used/traded/borrowed, the more valuable it becomes.&#x20;

The [Baseline](https://www.baseline.markets/#Features) team launched the $YES token that was purposely designed to prove out the capabilities of their token design and mechanics. They've posted an excellent [Case Study: $YES](https://mirror.xyz/0xe7AD459A24A10C5E94B76CcD24da62A8394eBf5f/Q9pBLoPxjgg6SatMnkojs5faAyBwlhEQAKFh3jfDFjI) which walks through their launch, stress tests and showcases how value compounds.

<figure><img src="/files/fSVKtOy9NGYWLFceA2JK" alt=""><figcaption><p>Baseline Powered Chart</p></figcaption></figure>
