1/ YieldBasis solves one of DeFi’s oldest problems, impermanent loss.
Built by Curve founder Michael Egorov, it introduces a new AMM model that keeps 2× leveraged $BTC exposure funded by crvUSD credit lines, tracking $BTC 1:1 while earning trading fees. 🧵
2/ Users deposit $BTC, the protocol flash-borrows an equal $USD value in crvUSD and add both to Curve’s BTC/crvUSD pool.
The LP token is used as collateral to borrow crvUSD and repay the flash loan, leaving a 50% debt and 50% equity position that keeps constant 2× BTC exposure.
3/ Trading fees follow a dynamic split:
- 50% fund rebalancing, the rest go to LPs and veYB holders
- More ybBTC staked increases veYB share; less staked sends more BTC fees to LPs
4/ Backed by Curve’s $60M crvUSD credit line and a $5M merit-based raise, @yieldbasis connects leveraged liquidity with governance through a 2× engine and veCRV-style fee model, extending Curve’s flywheel into BTC markets.
5/ Read more about YieldBasis in our latest Newsletter:
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