Plain-English definition
A basis point is a tiny percentage unit. One basis point is 0.01 percent; 50 basis points is 0.50 percent.
Stablecoin and funding moves often look small in dollars but meaningful in basis points. Bathymark uses basis points to make tiny peg and rate changes readable without exaggerating them.
Why it matters
Basis Point matters because crypto markets can look precise while still being shallow, crowded, or poorly sourced. A useful read is not just the number. It is the number, the size behind it, the context around it, and the part it cannot explain.
Simple example
A simple Basis Point example is a reader comparing two venues with the same headline price but different depth. The deeper venue can absorb more capital before the trade, peg, or yield reading starts to move against the user.
How Bathymark uses this term
Bathymark uses Basis Point to translate open market data into live liquidity readings. When the term touches a live page, the reading links back to the relevant chain, protocol, stablecoin, DEX, perps, or Signal so the source remains checkable.
Common mistake
The common mistake is treating Basis Point as a complete signal by itself. Bathymark treats it as one instrument: useful when read beside liquidity, source, size, and what the number cannot prove.