Yield Basis (YB)

Yield Basis is a DeFi protocol that aims to turn crypto into productive assets using original Automatic Market Making without IL. It keeps LP positions aligned 1:1 with BTC by pairing BTC with borrowed crvUSD and maintaining a constant 2x compounding leverage.

How it works:

• Borrow & pair: Users deposit BTC, which is matched with an equivalent USD value of crvUSD borrowed via a dedicated CDP. Both assets are deposited into the Curve BTC/crvUSD pool.
   
• LP as collateral: The resulting Curve LP token serves as collateral for the borrowed crvUSD.
   
• Stable leverage: The position is maintained at a 50% debt-to-value ratio (2× leverage), ensuring balanced exposure.
   
• Auto-rebalancing: A “Re-leverage AMM” mechanism and virtual pools incentivize arbitrageurs to restore 2× leverage whenever BTC price moves.

This design lets users earn trading fees and participate in DeFi yields while keeping their BTC exposure safe from impermanent loss.

YieldBasis Protocol generates trading fees from the underlying BTC/crvUSD pool and distributes 50% of them to unstaked ybBTC holders and veYB holders based on a dynamic admin fee. The other 50% goes into rebalancing the pool (more here).

🪙 Yield Basis token: $YB serves multiple roles within the ecosystem: it provides governance power when locked into veYB, enabling holders to influence protocol decisions; it ensures revenue sharing, distributing a portion of trading fees to participants; $YB allows users to gain staking rewards; it drives incentives through emissions and dynamic fee models; and it unlocks future potential through partnerships, expanding utility and adoption across DeFi.


The CoinLaunch team analyzed Yield Basis and identified some pros and cons to consider before participating in future token sales: 

✅  Yield Basis pros: 

• The project was created by the founder of Curve Finance;
• Quite low Inflation rate (about 18% in the first year);
• A lot of Security Audits;
• Quite low FDV for this project ($200M);
• Above-average PR Performance and SMM;
• Has reputable top-tier backers (Kraken);
• The core team has work experience in top-tier companies (LinkedIn, Curve Finance).

📛 Yield Basis cons: 

• The product does not match any market narratives;
• Weak Growth Marketing, SEO Marketing Infrastructure, and Influencer Marketing.