Base Dollar

Base Dollar is a collateralised debt position stablecoin protocol on Base, a licensed fork of Liquity V2 where users set their own borrowing rate and mint BD. Earlier generations of CDP protocols usually accepted a single collateral type and had the protocol set the rate, leaving borrowers no way to trade rate for cost. Collateral at launch covered ETH, wstETH, rETH, cbETH and cbBTC, and has since been extended to AERO and Aerodrome LP positions.

When an LP position is used as collateral, the contract stakes it automatically in the configured gauge, so the borrower keeps earning AERO for as long as the loan is open. Rewards are collected per epoch and distributed across positions weighted by interest rate, with above-average rates receiving a boost. If a position is liquidated, the AERO it accumulated during the epoch is redistributed to borrowers with other active positions. Depositors who put BD into a branch's Stability Pool receive 75% of borrower fees, the full liquidation fees generated by that pool, and OEV rewards from API3.