Yield Basis is launching IL-free, high-fee WETH–crvUSD “liquidity backbone” pools on Curve to give ETH LPs leveraged yield without impermanent loss.

Yield Basis, the DeFi protocol built by Curve founder Michael Egorov to eliminate impermanent loss for LPs, is expanding its model from BTC to ETH by proposing “liquidity backbone” WETH–crvUSD pools on Curve. These new pools are designed to give ETH liquidity providers leveraged, IL-free exposure to ETH while using high, dynamically adjusted trading fees to maximize LP returns and support deep on-chain liquidity for large trades and liquidations. According to Yield Basis’ announcement on X, the upcoming WETH–crvUSD pool on Ethereum will use the protocol’s IL-free AMM design and sit on top of Curve infrastructure, similar to its existing BTC–crvUSD markets. The pool will feature a dynamic fee range of roughly 0.43% to 2.4%, significantly higher than standard Uniswap ranges, with fees calibrated to shift value away from arbitrageurs and toward LPs as profit, based on backtested performance that showed ~8% average APY and about 16% cumulative returns over two years in a WETH–stable setup. Yield Basis describes these high-fee IL-free structures as “liquidity backbone” pools, intended to absorb large trades and liquidations in stressed markets while preserving 1:1 ETH price exposure for long-term LPs. The move builds on Yield Basis’ 2025 traction in BTC pools, where its Curve-based design used crvUSD credit lines and a constant-leverage mechanism (around 2x exposure) to offer double-digit organic yields to BTC LPs while eliminating impermanent loss by construction. By extending the same architecture to WETH–crvUSD, the protocol aims to create a new ETH yield primitive on Curve: LPs provide ETH, maintain full directional exposure, and earn leveraged trading-fee yield enhanced by high dynamic fees, while the system’s crvUSD-based rebalancing and credit-line model is meant to keep the pools liquid and suitable as core routing and liquidation venues in the Curve ecosystem.

✨ AI-generated background, compiled from web sources — not editorial content.

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