BaseCase

The protocol that bootstraps itself.

The Future of Prediction Markets

BaseCase is a revolutionary prediction market protocol that enables anyone to create and trade markets without upfront liquidity. Using our novel Shadow Liquidity mechanism, markets bootstrap themselves through user participation.

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How It Works

🌱 Create

Launch markets instantly with zero capital. Shadow Liquidity provides virtual reserves for immediate trading.

📈 Trade

Buy or sell outcome shares using a CPMM bonding curve. Prices adjust dynamically with demand.

🎓 Graduate

At 100% solvency, markets upgrade to Order Book trading with real ERC-20 outcome tokens.

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Protocol Architecture

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Key Metrics

Metric	Value	Description
Virtual Reserve	100,000 USDC	Initial shadow liquidity per market
Bonding Fee	2%	Fee on buy/sell during bonding phase
Graduation Threshold	100% Solvency	Required coverage before upgrade
Trading Fee	0.1%	Taker fee on order book trades
Creator Revenue	50% of fees	Incentive for market creators

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Core Innovation

Shadow Liquidity

Markets start with virtual reserves instead of locked capital. The protocol simulates a Constant Product Market Maker using:

$$virtualYES \times virtualNO = k$$

Users trade against this virtual pool, with all USDC deposits going into a central vault. Solvency is guaranteed when:

$$\frac{VaultBalance}{MAX(ShadowYES, ShadowNO)} \geq 100\%$$

Creator Incentives

Solvency Model

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Quick Links

📖 Getting Started

Understand the protocol fundamentals and start trading

🔧 Technical Docs

Smart contract interfaces and system architecture

❓ FAQ

Common questions answered

📋 Protocol Flow

Complete lifecycle from creation to resolution

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Build With Us

Resource	Link
GitHub	github.com/BaseCases/BaseCase
Network	Base (Coinbase L2)
Collateral	USDC
Oracle	UMA Optimistic Oracle

Ready to dive in? Start with the Protocol Overview to understand how BaseCase works.