A Basket (soft synth) is a token that represents a group of underlying tokens.
Bao has taken this concept and used it to create an automated portfolio management tool, Bao Baskets. Baskets give you low risk, automated and diversified exposure to crypto tokens, improving capital efficiency. Savings are made on gas fees, protection from impermanent loss, efficient rebalancing, harvesting and compounding farming rewards, as well as reducing taxable events in many regions.
Baskets v1 focuses on DAO managed baskets that users can choose from. Governance can be used to change their composition, as well as their rebalance and yield strategies.