Yield Basis Impermanent Loss Reduction DeFi Yield Protocol and Governance Token

12-11-2025, 4:34:53 AM
DeFi
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Yield Basis (YB) is a new decentralized finance product launched by Curve founder Michael Egorov, focusing on providing efficient and lower-risk on-chain yield solutions for Bitcoin holders. By leveraging an innovative AMM model, it eliminates Impermanent Loss for liquidity providers and creates an ecosystem that deeply integrates yield and governance.
Yield Basis Impermanent Loss Reduction DeFi Yield Protocol and Governance Token

Yield Basis Project Background and Core Objectives

Yield Basis focuses on reducing Impermanent Loss for AMM liquidity providers caused by asset price fluctuations. Through a 2x leverage model and rebalancing mechanism, it maintains a liquidity pool asset ratio close to 50/50, achieving stable and higher returns.

Token issuance and listing

The project will simultaneously launch the YB Token on multiple platforms in 2025, priced at 0.2 USD, with a total supply of 1 billion pieces, and approximately 2.5% allocated for public sale. The YB Token adopts a veYB locking governance model, allowing holders to participate in protocol governance and enjoy transaction fee dividends and staking rewards.

Technological Innovation and Revenue Sources

Introducing crvUSD as a leveraged pairing for investment assets through a lending model, paired with a dynamic rebalancing mechanism to adjust leverage ratios and reduce the damage caused by Impermanent Loss. A portion of the fee income is used for the repurchase and destruction of YB Token, as well as to establish an insurance fund to ensure the system operates stably over the long term.

Risk Warning and Future Outlook

Investors should pay attention to liquidity fluctuations, smart contract risks, and market adjustment pressures. In the future, Yield Basis plans to expand to more asset types and Layer 2 networks, and introduce institutional market making and risk-neutral strategies to enhance ecological diversity and asset robustness.

Summary and Strategic Recommendations

It is recommended to adopt a strategy of buying in batches and making small investments, paying attention to project roadmaps and governance dynamics, and setting reasonable take-profit and stop-loss levels, avoiding chasing highs. Long-term investors should emphasize protocol staking and governance participation, continuously observing the actual operation of the project and its risk control capabilities.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
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