Yield Basis Mainnet: Curve’s Impermanent-Loss-Free Bitcoin Pools

Published: 2025-09-06 08:45:28 |

Yield Basis, a new DeFi primitive by Curve founder Michael Egorov, will launch its mainnet soon. The protocol offers impermanent-loss-free liquidity pools, eliminating traditional impermanent loss risks. Initially, it will focus on three Bitcoin-backed tokens: wBTC, cbBTC and tBTC. A governance proposal to mint $60 million in crvUSD must pass in Curve DAO. Phase 0 is under vote; no liquidity can be deposited until approval. Once passed, Phase 1 will deploy $30 million crvUSD across three pools with $10 million caps each for a 10-day public test. Liquidity providers deposit BTC-backed tokens and receive ybBTC tokens. Earnings auto-compound and can be redeemed for principal plus yields. Future incentives include staking ybBTC to earn native YB tokens. Phase 2 details will follow based on initial test results. The protocol also holds $30 million crvUSD in reserve for leverage maintenance during extreme BTC volatility. Traders should monitor governance votes and initial liquidity thresholds. Successful launch may drive BTC demand, boost crvUSD utility and offer risk-mitigated yield opportunities. Disclaimer: this is not financial advice.

Bullish

Yield Basis’s launch is likely bullish. The impermanent-loss-free design addresses a major liquidity provider pain point, potentially attracting substantial BTC deposits. The $60 million crvUSD backing enhances protocol security and market confidence. Initial pools cap at $10 million each, indicating controlled risk. Historically, DeFi launches (e.g., Curve’s stable pools) have driven token demand and network activity. A successful rollout could boost BTC and crvUSD flows, benefit LP yields and reinforce Curve’s ecosystem. In the short term, governance voting and initial liquidity metrics will create increased on-chain activity. Longer term, if the zero-IL model proves effective, it may catalyze wider adoption across DeFi, increasing competitive pressure on other AMMs. Traders should watch liquidity thresholds and staking incentives for potential entry points. Overall, the launch’s success would support a bullish outlook for BTC and DeFi tokens tied to Curve protocols.