Curve Finance’s Michael Egorov Launches Yield Basis for Bitcoin

Michael Egorov, founder of Curve Finance, has introduced Yield Basis, a decentralized protocol aimed at offering sustainable Bitcoin yield while eliminating impermanent loss (IL), a persistent issue in DeFi.

Bitcoin holders often find limited on-chain return opportunities. Traditional lending markets offer minimal yields, and AMM pools expose users to IL, risking value loss when token prices diverge.
Yield Basis reengineers the AMM model to remove IL risk, promoting deeper Bitcoin liquidity and appealing yield opportunities for institutional investors. It launched three pools with a $1 million deposit cap each.
The protocol uses a vote-escrow mechanism (veYB) for governance, requiring token holders to lock YB to participate and earn fees in Curve’s crvUSD stablecoin or wrapped Bitcoin.
Unlike many DeFi projects, Yield Basis ties token emissions to position yield, described as “value-protecting.”
Secured $5 million in early 2025 funding, Yield Basis is the first project on the joint Legion and Kraken launchpad. While initially focused on Bitcoin, its IL solution may extend to Ethereum, tokenized commodities, or stocks.