# System Overview

{% hint style="info" %}
Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)).

Research Partner: Base58 Labs contributes execution research, systems modeling, and risk design.
{% endhint %}

This section explains the BASIS architecture, wallet model, execution stack, and the capital path through the platform.

## 1) High-level architecture

BASIS operates as three coordinated layers:

1. User & Accounting Layer

* Funding Wallet for native assets only: BTC, ETH, SOL, PAXG
* Staking Wallet for stTokens only: stBTC, stETH, stSOL, stPAXG
* Same-token 1:1 swap rules between native assets and stTokens
* Real-time reward accrual in the Staking Wallet as the same stToken

2. Execution Layer

* BQAE for cross-venue structural alpha capture
* Delta-neutral funding modules
* On-chain modules with active BTC, ETH, SOL, and PAXG support
* Deterministic routing and execution precision through BHLE

3. Risk & Operations Layer

* Pre-trade eligibility constraints
* State machine controls: Normal → BSCB → DMM
* Venue health scoring, throttling, and blacklisting
* Liquidity buffers, unwind protocols, and reconciliation checks
* Operational governance aligned with BASIS DIGITAL INFRASTRUCTURE LTD's active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 management systems

{% hint style="success" %}
BASIS is designed around deterministic execution, math constraints, and state machine risk controls. Capital preservation is implemented as a system rule, not an operator preference. The platform operates within active, publicly verifiable ISO management systems for information security and IT service management.
{% endhint %}

## 1.1) Wallet model

| Wallet         | Asset type    | Primary use                                                    | Deposit           | Withdraw                      | Stake rewards |
| -------------- | ------------- | -------------------------------------------------------------- | ----------------- | ----------------------------- | ------------- |
| Funding Wallet | Native tokens | Hold deposited assets and receive swapped-back native balances | Yes               | Yes                           | No            |
| Staking Wallet | stTokens      | Hold swapped staking balances and accumulated rewards          | Via 1:1 swap only | Via swap back to native asset | Yes           |

### Supported asset mapping

| Asset | Staked Token |
| ----- | ------------ |
| BTC   | stBTC        |
| ETH   | stETH        |
| SOL   | stSOL        |
| PAXG  | stPAXG       |

Swap rules are same-token only and 1:1 by quantity. BASIS does not support cross-asset swaps inside the staking flow.

## 1.2) Deposit model

{% tabs %}
{% tab title="BTC" %}
BTC deposits use a BASIS-assigned address that is unique to your account.

1. Open Assets
2. Select BTC
3. Copy your assigned BTC deposit address
4. Send at least 0.0001 BTC from an external wallet or exchange
5. After confirmation, BTC appears in your Funding Wallet

BTC deposits do not require a connected Web3 wallet.
{% endtab %}

{% tab title="ETH / SOL / PAXG" %}
ETH, SOL, and PAXG deposits use a connected Web3 wallet.

1. Open Assets
2. Select ETH, SOL, or PAXG
3. Connect a supported Web3 wallet such as MetaMask
4. Approve the wallet prompt and submit the native token deposit
5. After confirmation, the asset appears in your Funding Wallet

PAXG support is live and active.
{% endtab %}
{% endtabs %}

## 1.3) Core operational rules

| Item                             | Rule                                                               |
| -------------------------------- | ------------------------------------------------------------------ |
| Deposit assets                   | BTC, ETH, SOL, PAXG only                                           |
| USDT                             | Internal accounting and display unit only                          |
| Swap fee                         | 0.01%                                                              |
| Deposit fee                      | 0%                                                                 |
| Withdrawal fee                   | 0.05%                                                              |
| Minimum BTC deposit              | 0.0001 BTC                                                         |
| BTC withdrawal time              | Typically 10 to 60 minutes                                         |
| ETH / SOL / PAXG withdrawal time | Typically 1 to 10 minutes                                          |
| Reward format                    | Accumulates in real time as the same stToken in the Staking Wallet |
| Unstake behavior                 | Full position only, auto-MAX                                       |
| Claimable amount after unstake   | Auto-credited to the Staking Wallet as stToken                     |
| Fixed pools                      | Unstake only after the lock-up period ends                         |
| Booster options                  | 14D +10%, 30D +20%, 90D +50%, 180D +100%                           |

{% hint style="warning" %}
USDT balances shown on the dashboard are for accounting and reporting. Deposits and withdrawals occur in native assets only.
{% endhint %}

## 1.5) The Execution Engine: BHLE

All execution in BASIS runs through BHLE, the Base58 Hyper-Latency Engine, proprietary routing infrastructure developed with Base58 Labs, the platform's research partner.

| BHLE specification     | Value                                                                           |
| ---------------------- | ------------------------------------------------------------------------------- |
| Internal response time | Sub-50μs                                                                        |
| Throughput             | 100K+ OPS                                                                       |
| Execution model        | Deterministic routing with bounded variance and pre-validated state transitions |
| Risk controls          | Math-constrained eligibility checks before capital is allocated                 |
| Asset isolation        | Logical separation between user accounting and execution infrastructure         |
| Authorization model    | Wallet-connected flows require user-side approval where applicable              |
| Infrastructure         | N+1 bare-metal failover across multiple availability zones                      |
| Connectivity           | Unified bridge across Ethereum and Solana environments                          |
| Research basis         | Market microstructure design informed by Base58 Labs research                   |

BHLE exists to capture short-lived structural alpha opportunities under strict execution constraints. In fragmented digital asset markets, delay converts opportunity into slippage. Deterministic execution precision is therefore a core system requirement.

The execution stack operates within a broader operational framework designed for institutional-grade reliability. BASIS DIGITAL INFRASTRUCTURE LTD maintains active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certifications, both publicly verifiable on IAF CertSearch. These certifications support disciplined security governance and service management across the platform environment.

{% hint style="info" %}
Research context: BASIS combines proprietary infrastructure with market microstructure research from Base58 Labs. The design objective is consistent structural alpha capture under measurable latency, liquidity, and state constraints. BASIS DIGITAL INFRASTRUCTURE LTD's active ISO certifications are publicly verifiable on IAF CertSearch through the certification records and certified entity record listed above.
{% endhint %}

## 2) Capital flow 🔄

```mermaid
flowchart LR
  U[User] -->|Deposit native asset| F[Funding Wallet]
  F -->|1:1 same-token swap| S[Staking Wallet]
  S -->|Allocated capital| E[Strategy Matrix]
  E -->|Real-time rewards in same stToken| S
  S -->|Unstake full position| S2[stToken credited to Staking Wallet]
  S2 -->|1:1 same-token swap back| F
  F -->|Withdraw native asset| U
```

{% stepper %}
{% step %}
**Step 1: Deposit into the Funding Wallet**

Users deposit native assets only.

* BTC uses a BASIS-assigned deposit address
* ETH, SOL, and PAXG use a connected Web3 wallet
  {% endstep %}

{% step %}
**Step 2: Swap 1:1 into the Staking Wallet**

Native assets are swapped into the matching stToken.

* BTC → stBTC
* ETH → stETH
* SOL → stSOL
* PAXG → stPAXG
  {% endstep %}

{% step %}
**Step 3: Capital enters the strategy matrix**

The system allocates capital across independent modules for structural alpha capture, funding carry, and other constrained strategies.

All allocations must satisfy deterministic eligibility and risk checks before activation.
{% endstep %}

{% step %}
**Step 4: Rewards accrue in real time**

Rewards accumulate continuously as the same stToken in the Staking Wallet.

No manual claim step is required during active accrual.
{% endstep %}

{% step %}
**Step 5: Unstake and return to native asset**

Unstaking is full-position only. After unstake, the credited stToken balance appears in the Staking Wallet and can be swapped 1:1 back to the native asset in the Funding Wallet for withdrawal.
{% endstep %}
{% endstepper %}

## 3) BOVE: multi-strategy coordination

BOVE is the portfolio allocator. It routes capital across independent opportunity sources so performance does not depend on a single module.

This coordination layer improves capital efficiency by balancing:

* cross-venue structural alpha capture
* funding and carry opportunities
* on-chain yield paths
* liquidity availability
* venue quality and settlement constraints

The objective is not complexity for its own sake. The objective is stable, rule-based allocation across opportunity sets with different market dependencies.

## 4) BQAE: structural alpha core

BQAE is the system component responsible for cross-venue structural alpha capture.

Its operating cycle is:

1. Scanning\
   High-frequency price discovery across a curated venue registry
2. Filtering\
   Removal of low-quality venues and assets based on depth, liquidity, transfer health, and operational reliability
3. Coordinated execution\
   Precision buy and sell placement with bounded slippage and exposure windows
4. Settlement and reconciliation\
   Position closure, transfer validation, and post-trade accounting checks

BQAE acts only when the measured opportunity exceeds the system's execution, liquidity, and risk thresholds.

## 5) Risk and safety states

BASIS enforces capital protection through a formal state machine.

| State  | Function                                                                                        |
| ------ | ----------------------------------------------------------------------------------------------- |
| Normal | Strategies operate when all eligibility conditions are satisfied                                |
| BSCB   | Circuit breaker state that immediately restricts risk and halts affected activity               |
| DMM    | Maintenance state used for unwind, root-cause analysis, venue review, and controlled resumption |

These states are triggered by system rules, not discretionary judgment alone. This makes risk handling deterministic, auditable, and consistent across regimes.

### Control principles

* pre-trade math constraints
* deterministic state transitions
* venue health scoring
* notional and liquidity limits
* controlled unwind procedures
* reconciliation before resumption
* security and service processes aligned with BASIS DIGITAL INFRASTRUCTURE LTD's active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 management systems

## 6) Why this matters for users

You do not need to understand every internal module to use BASIS effectively. You should understand the following:

* Funding Wallet holds native assets
* Staking Wallet holds stTokens and accrued rewards
* swaps are same-token only and 1:1 by quantity
* rewards accrue in real time as the same stToken
* unstake is full-position only
* fixed pools unlock only after the lock-up period ends
* withdrawals depend on native asset settlement rails and liquidity buffers
* dashboard sections are organized as Stake, Assets, Referral, Support, and Account
* the platform is operated by BASIS DIGITAL INFRASTRUCTURE LTD, the certified entity for active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certifications that are publicly verifiable on IAF CertSearch

{% hint style="success" %}
The trust model of BASIS is based on deterministic execution, constrained strategy design, and explicit operational states. BHLE provides the speed. The risk engine provides the boundaries. Active, publicly verifiable ISO certifications strengthen the operational foundation behind that model.
{% endhint %}

***

Next: read Strategy Matrix to understand how BASIS sources structural alpha and yield across its execution modules.


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