Liquidity Manager · Review
ActiveBaseline Protocol Review 2026: Token-Owned Liquidity
Baseline is an onchain issuance protocol where tokens own their liquidity through a built-in market maker with a floor price. It is an experimental design with modest TVL, so treat it as a high-risk product.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.8/10
Good
Our verdict on Baseline Protocol
6.8/10Baseline suits experienced DeFi users and token founders who want to study a new approach to liquidity, where the token itself acts as the market maker and sets a reserve-backed floor price. Its main strength is a clearly described mechanism with staking, 0% borrowing and launch protection built in. The main caveat is that it is experimental, TVL is small, fee rates are unpublished, and floor price claims depend on contract and design assumptions. Read the docs and audits first.
Score breakdown
How Baseline Protocol scores
- Security
- 6.0/10
- Ease of use
- 6.5/10
- Fees
- 5.5/10
- Features
- 8.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Baseline Protocol?
Baseline is an onchain protocol for issuing tokens that own and manage their own liquidity. DefiLlama files it under liquidity managers and describes it as a DEX built for project tokens, with a custom AMM curve, MEV protection, floor prices and no-liquidation leverage.
The pitch targets founders who want to avoid sniping, mercenary liquidity and reliance on market makers. Every token launches with a built-in market maker, a floor price, staking, borrowing and leverage features. The homepage calls the latest upgrade Mercury.
DefiLlama shows about $1.74M in TVL across Ethereum, Base and Blast, and the project has been listed since March 2024. One search result says the project was previously named Jimbos and renamed Baseline Protocol, but this comes from a single snippet. Do not confuse it with the enterprise Baseline Protocol for data synchronization, which is an unrelated project.
How Baseline Protocol works
A Baseline token launches with a built-in market maker, the Baseline Market Maker (BMM), which runs onchain and quotes bids and asks. Instead of a standard xy=k pool funded by outside liquidity providers, the token's own reserves provide the liquidity.
In the Mercury version, the AMM keeps two pools. A backing pool supports the floor price, and a buffer pool handles price discovery. Because the AMM tracks how much supply is circulating, it prices accordingly.
Holders can deposit the underlying token to receive bTokens, which earn a share of trade fees and can be used as collateral to borrow against the floor value. Trading fees are also meant to fund buybacks that remove supply from the market.
7 features
Key features
01
Token-owned liquidity
Each Baseline token manages its own liquidity through an onchain market maker rather than relying on outside liquidity providers or traditional market makers.
02
Supply-aware AMM
Mercury separates reserves into a backing pool that supports the floor price and a buffer pool for price discovery, and tracks circulating supply when pricing.
03
Floor price
Reserves back a minimum price, called the baseline value or BLV, which the project describes as an unbreakable floor.
04
Staking fee sharing
A portion of each trade fee goes pro-rata to staked bToken holders, claimable at any time with no lockup, according to the FAQ.
05
0% interest borrowing
Holders can borrow against the floor value of their bTokens at 0% interest, with a small one-time origination fee.
06
No-liquidation leverage
The project describes leverage with no liquidation risk and an Afterburner tool that automates and gamifies buybacks.
07
Launch protection
The AMM includes adverse selection protection intended to reduce sniping and MEV extraction at launch.
Pros and cons
What we like
- Clear design goal: tokens hold their own liquidity and quote prices onchain, reducing dependence on outside market makers
- Floor price mechanism backed by reserves that gives holders a defined minimum value
- 0% interest borrowing against floor value, with only a small one-time origination fee
- Fee sharing with stakers and no lockup for claiming rewards
- Two audits listed on DefiLlama and public docs, a simulator and a blog
- Live on Ethereum, Base and Blast
Watch out for
- TVL is small at about $1.74M and one search snippet shows a 19% drop over 30 days, so liquidity is thin
- The model is novel and has limited track record; the homepage testimonials mention earlier false starts
- Marketing language such as unbreakable floor price and up-only depends on smart-contract correctness and design assumptions
- The floor price guarantee protects only against price falling below a backing value set by the AMM, not against loss relative to your entry price
- Leverage and borrowing features add complexity and risk for ordinary holders
- Fee levels, audit details and team information are not stated
Baseline Protocol fees
Trading fee rates are not published. The homepage says a portion of every trade fee is shared with staked bToken holders, and that borrowing carries no interest but a small one-time origination fee.
Users should check the app and the docs for current fee rates before trading, staking or borrowing.
Is Baseline Protocol safe?
DefiLlama lists two audits for Baseline, but the project does not name the auditors or summarize findings. Everything is enforced by smart contracts, so the main risks are contract bugs, economic design flaws and market risk in the underlying project tokens. No custodial intermediary is described.
The floor price is a design feature, not insurance. Borrowing and leverage features add further complexity. One homepage testimonial acknowledges a few false starts and a team that handled messy situations well, but public sources give no details on past incidents. Check local regulations and only commit money you can afford to lose.
6 steps
How to get started with Baseline Protocol
- 1
Read the docs and the simulator on the official site to understand the floor price and buffer pool mechanics.
- 2
Check the audit information and confirm contract addresses through the official docs and channels.
- 3
Connect a compatible wallet and choose a supported network such as Ethereum or Base.
- 4
Start with a small amount in a Baseline token and review the quoted price, fees and floor value before trading.
- 5
If staking, deposit the underlying token to receive bTokens and review how rewards accrue.
- 6
Only use borrowing or leverage after you understand the origination fee and how the position is backed.
Who Baseline Protocol is for
Baseline is for token founders looking for an automated liquidity setup, and for experienced DeFi users who understand AMM curves, collateralized borrowing and leverage. It is not a good fit for beginners who want a simple swap venue or a predictable return.
Baseline Protocol FAQs
What is Baseline Protocol?
Baseline is an end-to-end asset issuance protocol where tokens own and manage their own liquidity. Tokens launch with a built-in market maker, a floor price, and mechanisms for staking, borrowing and leverage, all enforced onchain.
Which chains does Baseline run on?
DefiLlama lists Baseline on Ethereum, Base and Blast. Which chains a particular token trades on depends on how that token was launched.
What is Baseline Mercury?
Mercury is Baseline's latest AMM upgrade. It is supply-aware and splits reserves into a backing pool that supports the floor price and a buffer pool that handles price discovery.
How does borrowing on Baseline work?
According to the homepage, you can borrow against the floor value of your bTokens at 0% interest and repay only what you borrowed. A small one-time origination fee applies, and its size is not stated publicly.
Does the floor price mean I cannot lose money?
The floor price is a minimum value backed by the protocol's reserves, according to the project. It is not a guarantee that a token will trade at or above what you paid, and it relies on the contracts working as designed.
Is Baseline audited?
DefiLlama lists two audits and a token with the ticker B. The project does not include audit reports, auditor names or findings, so read the audit documents in the project docs before using it.
Compare
Baseline Protocol alternatives
Snuggle is an automated concentrated-liquidity manager on Base and Arbitrum that rebalances LP positions without swaps for a 15% fee on earnings.
Gamma is a non-custodial protocol that automates concentrated liquidity positions on DEXs across many chains for liquidity providers.
ICHI is a non-custodial liquidity manager whose vaults turn single-token deposits into concentrated liquidity positions that earn trading fees.
Arrakis Modular is a Meta Vault framework for managed, non-custodial liquidity, aimed mainly at token issuers across several EVM chains.
Arcadia V2 automates DEX liquidity positions and offers leveraged farming on Base, Optimism, Robinhood Chain and Unichain, for experienced DeFi users.
Kodiak Islands is the automated LP vault layer of Kodiak DEX on Berachain, for liquidity providers who want managed concentrated-liquidity positions.
Same category
More Liquidity Managers
Kamino Liquidity is a Solana liquidity manager that automates concentrated liquidity ranges, rebalancing and fee compounding for DeFi users.
Revert Finance offers analytics, auto-compounding, range tools and leverage for liquidity providers on Uniswap-style DEXes.
Krystal is an AI-assisted liquidity management platform with vaults and tools for farming DEX pools across Ethereum, Base, BNB Chain, Arbitrum and more.
Arrakis Finance, formerly G-UNI, is an onchain market-making protocol that automates Uniswap liquidity for providers and token issuers.
Arrakis V1 is the original set of Arrakis vaults that manage concentrated DEX liquidity on Ethereum, Optimism and Polygon for LPs and token projects.
Charm Finance V1 is an Ethereum liquidity manager that runs permissionless LP vaults for liquidity providers and token projects.
Same chain
More on Ethereum
Lido is a liquid staking protocol where users stake ETH and receive stETH, a reward-earning token usable across DeFi, governed by LDO holders.
Aave V3 is a non-custodial DeFi lending protocol on 21 chains where users earn interest on deposits or borrow against collateral.
Uniswap V4 is the latest Uniswap DEX version with hooks and concentrated liquidity, running on 22 chains for self-custody token swaps and liquidity provision.
Uniswap V3 is a non-custodial decentralized exchange protocol for token swaps and concentrated liquidity provision across 40+ chains.
DeFi Saver is a non-custodial tool for managing and automating leveraged lending positions across major DeFi protocols on Ethereum and layer-2 networks.
OKX is a major centralized crypto exchange for spot and derivatives trading, earn products and a Web3 wallet, with its own OKB token.
How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.