Yield Basis, a new project from Curve founder Michael Egorov, secures $5M to tackle impermanent loss for tokenized Bitcoin and Ether.

Yield Basis is a new DeFi protocol created by Curve Finance founder Michael Egorov that has raised about $5 million in seed funding at a roughly $50 million fully diluted valuation, according to reports on the round. The financing is understood to have involved selling around 10% of the total 1 billion YB token supply, positioning Yield Basis as Egorov’s next major project after Curve and its stablecoin crvUSD. The protocol is designed as an AMM-based system that sits on top of Curve’s crypto pools and targets one of DeFi’s persistent structural issues: impermanent loss for liquidity providers in volatile asset pairs like tokenized Bitcoin (BTC) and Ether (ETH). Yield Basis aims to let users deposit a single volatile asset, such as BTC or ETH, and obtain a yield-bearing token (e.g., ybBTC, ybETH) that maintains price exposure while providing liquidity and earning trading fees. Technically, the mechanism uses 2× leverage via crvUSD and an automated rebalancing AMM that borrows the “other side” of the pool so that the user is not forced to sell their BTC or ETH as prices move, with simulations presented by Egorov showing that this structure can remove or drastically reduce impermanent loss relative to holding the asset. The project also envisions a tighter integration with Curve’s ecosystem, including potential crvUSD allocations in exchange for YB token exposure, which would deepen Curve’s stablecoin liquidity while giving Yield Basis a capital source for its leveraged positions. If it works as designed, Yield Basis could make it more attractive for long-term BTC and ETH holders to supply liquidity without facing the traditional trade-off between yield and price exposure.

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

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• Curve founder is developing a new project Yield Basis ... - Binance (binance.com)
• Yield Basis: How to Solve Impermanent Loss - Curve News (news.curve.finance)
• Michael Egorov (@newmichwill) / Posts / X (x.com)

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