Yieldbasis Leveraged Liquidity DeFi Protocol Analysis

Core Innovation and Architecture

Yieldbasis adopts a 2× leverage liquidity design, ensuring that LP positions track BTC prices 1:1, eliminating impermanent loss risk. Users deposit BTC to automatically lend crvUSD and deposit it into the Curve pool, holding ybBTC wallet tokens to earn fee-sharing and YB token incentives, with automatic liquidation and debt repayment upon exit.

Profit Distribution Mechanism

The protocol will distribute the trading fees of the Curve BTC/crvUSD pool proportionally to both staked and unstaked ybBTC users. Unstaked users will directly receive BTC fee sharing, while staked users will receive YB rewards. veYB holders will share dynamic management fees through voting and locking, with 50% of system profits allocated for community sharing and 50% for leverage maintenance and liquidity replenishment.

Token Economy and Incentives

The total supply of YB tokens is limited, with 30% allocated for community incentives, 25% distributed to the team, 15% for ecological reserves, 12.1% for investors, 7.5% for paying Curve technology licensing fees, 7.4% as development reserves, and 3% for voting and Liquidity incentives, balancing the security of the protocol and the needs for long-term development.

Development Vision and Market Impact

Yieldbasis is committed to providing low-risk, decentralized yield solutions for long-term BTC and ETH holders, becoming a new model of asset productivity in the DeFi field, catering to the investment needs of institutions and individuals, and promoting the healthy growth of the crypto ecosystem.

Summary

The emergence of Yieldbasis has revived the dormant assets of BTC, representing a new phase in the Decentralized Finance yield mechanism, which no longer relies on inflation subsidies or high-risk leverage, but instead makes transaction fees themselves the source of yield.