Although it can be used as a term of endearment toward loved ones, an alternative meaning or use would be a a term you call someone to show your appreciation for what that person did or has, to the extent that it becomes an attribute you would desire in a loved one.
Person 1: I did all my homework, with no procrastination.
Person 2: That's so bae of you.
Person 1: I wrote the notes for you so you don't have to catch up.
Person 2: Such a bae.
Person 1: Oh my gosh! I got the new tongue piercing that I've always wanted.
Person 2: That looks so good. That is so bae.