YieldBasis: Curve's Founder Launches a New Era in On-Chain Yield with a Second Revolution

Introduction of YieldBasis: YieldBasis, developed by Curve founder Michael Egorov, features a 2× leveraged AMM design that eliminates impermanent loss while allowing BTC to generate yield, integrating with Curve’s crvUSD system and partnering with Kraken and Legion for compliance and liquidity.

Mechanism and Innovation: The protocol uses a structured yield system for BTC, maintaining a constant leverage through automatic rebalancing, allowing liquidity providers to earn fees without facing impermanent loss, and offering dual yield paths for users.

Ecosystem and Capital: YieldBasis has secured a $60 million credit line from Curve DAO and raised $5 million through Kraken and Legion, creating a robust ecosystem that combines Curve’s stability, Kraken’s compliance, and Legion’s community trust.

Risk and Outlook: While YieldBasis mathematically eliminates impermanent loss, it still faces risks related to market volatility and reliance on crvUSD, with plans for expansion across multiple chains to enhance its decentralized yield infrastructure.