Dear community members,

Jimbo was a proof-of-concept designed to test the limits of onchain liquidity. This experiment was cut short when a hacker thrust the protocol into a precarious state with the theft of 4,048 ETH. In this dark moment, most teams would’ve given up and, under the guise of anonymity, disappeared into the ether. We are not that kind of team.

The months that followed were characterized by uncertainty and non-stop grind to rebuild the system from scratch. What gave us purpose during this time were the early signs showing that the mechanism worked: liquidity was rebalancing and the floor was moving up. What arose was a deeper desire and renewed purpose in pushing DeFi forward, dismantling previously established patterns in markets and tokenomics. 9 months from that point, we return with a system that we believe will change DeFi forever.

Make no mistake: we're not just rebuilding; we're reinventing. Using lessons learned from Jimbo, we’ve rethought the mechanisms from the ground up, written extensive tests and simulations, and engaged with auditors specializing in liquidity systems. We are confident that, with the community's support, we will redefine what’s possible with onchain liquidity.

Introducing Jimmy’s Stimmy Plan

Whereas JIMBO directed team fees to the team multisig, Baseline Protocol will share team fees equally with a community-owned contract called Jimmy’s Stimmy. Hack victims will be able to claim their pro-rata share from this contract.

Hack victims and their pro-rata allocation are defined as everyone who held $TURBOJIMBO and/or $ULTRAJIMBO at block number 95144404 (one block before exploit block).

Team fees come exclusively from liquidity rebalancing. While the fees are in Baseline token (ticker TBD), the contract will automatically borrow backing and recipients will receive pure ETH. This has the dual benefit of 1) taking token supply off-market (deflationary) and 2) avoiding any impact on market premium.

Not stimulated yet? A total of 4,048 ETH was lost in the exploit but the stimmies will continue streaming fees until a total of 6,841 ETH is paid to the contract, representing a 69% surplus for every hack victim on completion. So as not to dilute the repayment, Jimbo team wallet will be excluded.

To learn more about what liquidity rebalancing is and how the fees are calculated, check out our docs. The general idea is that more volume translates to more fees which translates to quicker repayment.

Timeline

Jimmy’s Stimmy contract will be deployed at launch (beginning of March). Users will be able to navigate to https://claim.baseline.markets, connect impacted wallets, and claim pro-rata at any time.

NOTE: The claim page is not live yet. We will update when Baseline goes live.

Next Steps

• Follow Baseline on Twitter and RT when we tweet

• Join the convo on Discord

• We’ll be sharing plans for presale this week (week of Feb 12)

• Prepare to participate in launch of Baseline (beginning of March). Remember: more volume through Baseline translates to more fees which translates to quicker repayment.