Prospectus

BuyBuy Capital Management is a reserve protocol deployed on Base. It issues a single share, $BUY, and holds a treasury of assets against the shares in issue. The treasury is on-chain, its contents are readable by anyone at any time, and its behaviour is fixed in code that cannot be altered after deployment.

The protocol does two things. It sells shares below the prevailing market price in exchange for assets it retains, which raises the assets held per share. And it stands ready to buy shares back at the value of the assets attributable to them, which places a floor under the share that does not depend on a counterparty choosing to appear.

Everything else in this document follows from those two operations. There is no strategy beyond them, no discretionary management, and no manager.

The mechanism is not new. It descends from the family of reserve-backed protocols that began with OlympusDAO in 2021, and it inherits both their properties and their failure modes. The failure modes are set out in the risk factors, which should be read before this document rather than after it.

$BUY is an ERC-20 token on Base with nine decimal places. It carries no voting right, no claim on any legal entity, and no entitlement to any distribution other than the mechanisms described in this document. It is not a share in a company and its holder is not a member of anything.

The word “shareholder” is used throughout this site because it describes the relationship accurately: a holder owns a proportional interest in a pool of assets that the protocol administers on fixed terms. It should not be read as implying a corporate structure, a jurisdiction, or a legal remedy. There is none of any of those.

Supply is not fixed. It rises when subscriptions settle and when the dividend programme distributes. It falls when the standing bid is met and the shares acquired are retired. Total supply at any moment is readable from the token contract and is published on this site.

The treasury holds its reserve principally in USDC, the token issued by Circle on Base at 0x8335…2913. USDC was selected because it is the only stablecoin on Base with depth sufficient to matter: at the time of writing it accounts for roughly 86 per cent of all dollar-pegged supply on the chain, against a total of about 4.97 billion.

The bridged token USDbC, which carried dollar liquidity on Base in 2023, is not used and is not accepted. Its supply has fallen to approximately 6.15 million against native USDC’s 4.28 billion — a ratio of about one to six hundred and ninety-five. It is named here only so that the address is recognisable as the wrong one.

The treasury also holds assets acquired through liquidity subscriptions and, at times, volatile assets acquired through reserve subscriptions. These are held, not traded. There is no rebalancing, no hedging and no yield strategy applied to them, because any of those would require a decision-maker, and the protocol does not have one.

Net asset value

The total value of treasury holdings, marked as described in section 7.

Risk-free value

The part of the treasury redeemable at a known figure regardless of market conditions. In practice this means the reserve stablecoin and nothing else.

Backing per token

Net asset value divided by shares in issue. The price at which the standing bid is placed.

A subscription is a sale of newly issued shares at a price set by the protocol, settled in assets the treasury keeps. The subscriber pays in a quoted asset and receives shares which vest linearly over a stated term. Nothing is received at once.

Two kinds of market are offered. A reserve subscription is settled in the reserve asset or another asset the treasury will hold. A liquidity subscription is settled in liquidity provider tokens, which transfers the depth of the trading pool from a rented position to one the protocol owns outright.

Price is set by a curve, not by an operator. As a market is taken up, the price it offers rises toward the market price; as it goes untaken, the price falls. A market that cannot clear above backing per share offers nothing, because a subscription settling below backing would dilute the reserve rather than add to it. This is a property of the pricing, not a rule someone enforces.

The vesting term exists to make the subscription a position rather than an arbitrage. A subscriber carries price risk for the whole of the term and may find, at the end of it, that the discount they subscribed at has been more than erased by the market.

Subscription is the only mechanism that raises backing per share. If no subscription clears, backing per share does not rise, and the dividend programme continues to distribute against a reserve that is no longer growing. That situation is not hypothetical; it is the ordinary end state of protocols of this kind.

Shares may be deposited into the dividend programme, which returns sBUY. The balance of sBUY held rebases at the end of each epoch, so a depositor’s balance rises without any action on their part. Epochs are eight hours long. Anyone may call the function that advances one; there is no keeper and no allowlist.

The rebase is a distribution of newly issued shares among depositors. It is not income. It does not come from revenue, from a yield strategy, or from an external counterparty, and nothing is earned by it in the sense that word usually carries.

A depositor’s share of total supply rises relative to a holder who has not deposited, and falls relative to nothing at all. If every holder deposits, every holder’s balance rises and no holder’s proportional claim on the treasury changes. The programme redistributes; it does not create.

The rate is published as an annualised figure because that is the convention, and the convention is misleading. It is an annualisation of the current epoch’s rate, compounded forward on the assumption that the rate holds for a year. It is not a forecast, it is not a return, and it has never held for a year at any protocol of this design.

The protocol offers to buy shares from any holder at backing per share, settled from the reserve. Shares acquired this way are retired. The reserve falls by the amount paid and the share count falls by the shares taken in, and because the payment is made at exactly the backing rate, backing per share is unchanged by the transaction.

This is the sense in which the protocol is always the buyer. There is no market maker to withdraw, no desk to stop answering, and no discretion to exercise. If the reserve holds the assets, the bid is met.

The bid is limited per epoch. A limit exists because a reserve that can be drawn without constraint can be drawn to nothing in a single block by a holder large enough to do it, at which point the bid no longer exists for anyone else. The limit is a fixed parameter and is published on the shareholder page.

The floor is a floor on what the protocol will pay. It is not a floor on the market price, and the two are frequently different. A share can trade below backing for as long as the market chooses to trade it there; what the floor guarantees is that a holder who accepts backing can always get backing, subject to the per-epoch limit and to the reserve being present.

Reserve stablecoins are marked at unit value. Volatile holdings are marked at the price returned by the on-chain source the treasury contract reads, and no other source is consulted.

Liquidity positions the protocol owns are marked at the position’s share of the underlying pool reserves, with the $BUY side of the pair marked at backing rather than at market price. Marking it at market would let the treasury’s own share inflate the treasury that backs it, which is circular. This is the single most consequential valuation choice in the design and it is made deliberately in the conservative direction.

Risk-free value excludes everything except the reserve stablecoin. A holding does not become risk-free by being large, by being liquid, or by having held its peg so far. Assets that maintain a dollar value through a trading strategy rather than through redemption are dollar-denominated assets, not dollars, and they are excluded.

There is none. The contracts have no owner, no administrator role, no pause function, no upgrade path and no privileged caller. No parameter can be changed after deployment by us or by anyone.

This is a design decision with costs. A protocol that cannot be changed cannot be repaired. If a parameter proves badly chosen, it stays badly chosen. If a defect is found in the code, it cannot be patched, and the only available response is for holders to leave through the standing bid while the reserve is still there to meet it.

The reason to accept those costs is that the alternative is worse in a specific way: a key that can pause the standing bid is a key that can remove the only feature that distinguishes this from an unbacked token. A floor that someone can switch off is not a floor. The contracts are listed with their addresses on the governance page so this claim can be checked rather than believed.

The protocol charges no management fee, no performance fee, no deposit fee and no withdrawal fee. There is no treasury allocation to a team, no vesting schedule for insiders, and no share of subscriptions directed anywhere other than the reserve.

Participants pay Base network fees on every transaction, which are small but not zero, and they pay the spread and price impact of any trade made on a public market. Neither is received by the protocol.

Epoch

The eight-hour interval at the end of which the dividend programme distributes. Advanced by any caller.

Index

The cumulative rebase multiplier since inception. One share deposited at inception would by now be the number of shares the index states.

Subscription

A sale of newly issued shares at a protocol-set price, settled in assets the treasury retains and vesting over a stated term.

Protocol-owned liquidity

Trading depth held by the treasury itself rather than supplied by third parties who may withdraw it.

Standing bid

The protocol’s offer to buy shares at backing per share, subject to a per-epoch limit.

Retirement

The permanent removal from supply of shares acquired through the standing bid.