Baseline Value (BLV)

Up only forever.

Baseline guarantees ERC20s an intrinsic "baseline value" (BLV) by reserving enough liquidity in the pool to buy back their entire supply. Put simply, the BLV is the price at which the last token can be sold into the pool.

This is possible because the protocol owns the initial supply; teams cannot issue tokens to themselves or investors ahead of time. Instead, each newly issued Baseline token must be purchased directly from the pool, allowing the protocol to accumulate liquidity.

This liquidity is then utilized in Baseline's permissionless market making system and native credit facility to grow a Baseline token's BLV over time. Both are implemented in a way such that the BLV never decreases, resulting in a BLV price that can only go up over time.