Yield Basis, the latest project from Curve Finance founder Michael Egorov, aims to overhaul how users earn yield on BTC in DeFi. With an innovative approach to liquidity provision, no impermanent loss (IL), and a carefully structured $YB token emission model, the protocol enters the market as a serious contender in the space of bitcoin farming.

What is Yield Basis?

Yield Basis is a BTC-focused DeFi protocol that allows users to earn consistent yield while avoiding one of the biggest pain points in liquidity mining — impermanent loss. The protocol maintains a 2x leveraged BTC liquidity position, which, when managed correctly, eliminates the price divergence that typically causes IL.

This model mirrors the performance of spot BTC, making it ideal for users looking for BTC passive income while maintaining exposure to bitcoin’s price action.

The $YB Token and Vote-Escrow Governance

At the heart of the protocol lies the $YB token, which serves both as a reward mechanism and a governance asset. Users providing liquidity can either receive:

• Real BTC yield generated from trading activity, or

• Emission-based rewards in the form of $YB token

Those who choose to lock their tokens into veYB (vote-escrow YB) gain access to governance rights and receive veYB staking rewards, further aligning long-term incentives.

Unlike inflation-heavy tokenomics, Yield Basis uses a value-protecting token emission structure. Each $YB has a calculable cost basis, ensuring supply is tied to actual economic activity — a notable upgrade compared to previous DeFi incentives.

Key Features of the Yield Basis Protocol

• BTC yield exposure with no IL liquidity pool

• Dual reward option: BTC or $YB emissions

• veYB staking for protocol control and additional returns

• Chain-specific tokens to avoid cross-chain risks

• Designed as a BTC liquidity blackhole, attracting capital with sustainable returns

Together, these features position Yield Basis among the best BTC yield protocols available for both individual users and institutions seeking high yield bitcoin farming without giving up custody or security.

Why It Matters Now

Yield Basis arrives at a time when traditional BTC liquidity mining platforms are underperforming. Many fail to offer meaningful returns or leave users exposed to volatile token price action. This protocol offers a compelling alternative through:

• Automated rebalancing and leverage strategies

• Real BTC-denominated yield

• Curve-inspired vote escrow tokenomics

• Protection against IL without sacrificing earning potential

With the BTC supercycle opportunities narrative returning to the spotlight, demand for optimized, low-risk BTC DeFi yield strategies is growing.

Launch Plans and Ecosystem Growth

The protocol is set to launch first on Ethereum mainnet, pending final security audits. A $5 million seed round has already been completed, and the project plans to integrate with crvUSD and other Curve-native tools.

Each blockchain deployment will feature its own $YB token utility and governance structure, reducing systemic risk and ensuring community alignment on every chain.

A Shift in BTC Yield Protocol Design

Yield Basis is more than another farming protocol — it represents a shift toward structured, risk-managed, and user-aligned models for generating bitcoin yield in DeFi. With an emphasis on LP tokens bitcoin users can trust, long-term governance, and LP without impermanent loss, it offers a blueprint for future BTC-native protocols.

Whether you’re a retail investor seeking passive returns or a DeFi strategist optimizing BTC APR, Yield Basis could become a new foundational layer in decentralized bitcoin finance.