YieldBasis

• YieldBasis lets liquidity providers earn trading fees on Bitcoin and Ethereum pairs while minimising impermanent loss.

• It maintains a leveraged position and rebalances continuously to offset the divergence that normally costs providers.

• YB is the protocol token.

• Total supply is 1 billion YB, allocated 30% to liquidity incentives, 25% to the team, 15% to an ecosystem reserve and 12.1% to investors, with smaller shares for Curve licensing and protocol development.

• Emissions reward liquidity providers alongside trading fees.

Pros:

• Impermanent loss is the main deterrent to providing liquidity, and this attacks it directly.

• Built by a founder with a strong track record in automated market maker design.

• Uses established stablecoin infrastructure as collateral rather than issuing its own.

Cons:

• The strategy uses leverage, which introduces liquidation risk that plain liquidity provision does not have.

• Continuous rebalancing incurs costs that reduce net return.

• Novel mechanism without a full market cycle behind it.

• Exposure to a protocol addressing the primary economic problem with liquidity provision.

• Founder credibility in AMM design is substantial.

• Weigh that leverage replaces impermanent loss with liquidation risk.

• Leveraged rebalancing that offsets impermanent loss, so liquidity providers keep fee income without the divergence cost.

• Liquidity providers earn fees but lose to impermanent loss, often netting less than simply holding.

• Maintaining a leveraged offsetting position neutralises the divergence, at the cost of liquidation exposure.

• Founded by Michael Egorov, who created Curve Finance.

• Backed by ecosystem investors.

• YieldBasis held a public sale on Kraken Launch and Legion in October 2025 at a fixed price of $0.20 per token, a fully diluted valuation of $200 million.

• Leverage introduces liquidation risk absent from ordinary liquidity provision.

• Rebalancing costs reduce net returns.

• Novel mechanism untested through severe volatility.

• Dependency on the underlying stablecoin infrastructure.