Curve Finance founder Michael Egorov’s new project, Yield Basis, is designed to address the persistent challenge of impermanent loss in decentralized finance (DeFi) by leveraging liquidity in a different way.
In a white paper shared to X, Egorov explained that the protocol uses 2x leverage, typically via Curve’s crvUSD stablecoin, to to keep positions closer to market prices and reduce the effects of impermanent loss.
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Yield Basis also tokenizes liquidity positions into yield-bearing assets (like ybBTC and ybETH), which can be staked for additional rewards.
The project raised $5 million at a $50 million valuation, with strong investor interest and a token (YB) vesting schedule that includes a six-month cliff followed by two years of linear release. It is currently in a “test-in-production” phase, with audits and testing underway before a full-scale launch.
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