Hypothecation

Hypothecation in the Based Rate Ecosystem:

Hypothecation within Based Rate is a powerful mechanism that leverages the staked assets within the ecosystem to fuel its growth and sustainability. Here's how it works:

  1. Locked and Secure: The staked assets on Based Rate are held securely in a audited contract that is entirely inaccessible to any admin or external entity. This unassailable nature ensures the integrity and transparency of the staking process.

  2. Supporting Liquidity: These staked assets, advertently locked onto the Aerodrome platform, serve a dual purpose. They not only provide liquidity to the ecosystem but also actively participate in the broader crypto landscape.

  3. Earning AERO Emissions: As these assets remain locked, they continuously earn AERO emissions on Aerodrome. These emissions represent fresh capital flowing into the ecosystem, injecting vitality and strength.

  4. Ecosystem Support: The AERO emissions generated through this process are strategically employed to bolster and support the overall health of the Based Rate ecosystem. This capital infusion can be directed towards various essential initiatives, such as supporting peg, liquidity enhancement, development, and community rewards!

In essence, Hypothecation is a dynamic and self-sustaining process that transforms staked assets into a source of strength, contributing to the long-term growth and stability of the Based Rate ecosystem.

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