I’ve been diving deep into @yieldbasis , and I wanted to share what I’ve learned straight to the point, without the usual DeFi jargon. The project is led by Michael Egorov, the founder of @CurveFinance , and is tightly aligned with the Curve ecosystem. At its core, Yield Basis is a protocol designed to help BTC and ETH holders earn yield without selling their assets and while dramatically reducing the impermanent loss you’d normally face in AMMs. I like to think of it as leveraged, on-chain market making: you deposit tokenized BTC or ETH, the protocol uses roughly 2× leverage to keep pools balanced, and LPs earn trading fees in a way that tracks the underlying asset much more closely than traditional liquidity pools. That gives it a strong layer of technical credibility and explains the familiar ve-style governance approach. It’s not just an experimental idea either, the project has raised several million dollars in early funding and was valued in the tens of millions. From a product perspective, a few things stand out: - Leveraged liquidity pools: You can deposit BTC or ETH, and the protocol rebalances with borrowing to maintain a 50/50 exposure. - Flexible rewards: Choose to receive trading fees directly in BTC/ETH or earn YB tokens. - Governance token: YB (total supply ~1B) can be locked as veYB for voting power and a share of protocol revenue. - Curve integration: Plans include multi-chain deployment and using crvUSD to bootstrap BTC liquidity. The tokenomics are also worth noting. YB allocations include investors, team, liquidity incentives, and ecosystem funds all designed with long-term alignment in mind. The veYB model especially rewards committed participants who lock their tokens. Of course, there are still risks. Even if impermanent loss is reduced mathematically, LPs remain exposed to rebalancing costs including trading fees and interest on borrowed assets. The entire system depends on having enough on-chain activity and volume to make the math work. In a low volume environment, returns could be less attractive.