Loans: Access Capital Without Selling

Holders of Baseline tokens can borrow against their BLV — the guaranteed floor value — with 0% interest. This means they can access liquidity without selling their tokens, without risking liquidation, and without giving up future upside.

Borrowing is non-custodial and on-demand. The loan amount is determined by how much floor value the user has (based on their token holdings and the BLV). Repayment is optional.

Example

  • Jim has 1 ETH and decides to get exposure to YES.
  • At current prices (0.001357 per token), Jim can buy 737 YES.
  • The BLV is 0.001231 per token. Jim can instantly borrow 737 x 0.001231 = 0.9 eth while maintaining price exposure to 737 YES tokens.
  • Since Jim spent 1 eth and borrowed 0.9 ETH, they technically only risked 0.1 ETH of capital to get price exposure to 737 YES tokens.
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Key Takeaway: Baseline turns token liquidity into a productive asset.

  • Borrowing allows users to unlock liquidity without selling, preserving their position and exposure.
  • Leveraging lets users compound their exposure by using borrowed liquidity to buy more — increasing demand and floor value.

Together, these mechanics create a positive-sum system where tokens grow in utility and value, and users have more ways to participate without relying on external DeFi tools.

BMMLeverage