Michael Egorov, the brains behind Curve Finance, has unveiled a groundbreaking project known as Yield Basis, aimed at addressing impermanent loss within the decentralized finance (DeFi) space. The project has garnered significant attention, raising $5 million in funding with a token valuation of $50 million.
Yield Basis is set to revolutionize the way tokenized Bitcoin and Ether holders earn yield from market-making activities while minimizing the risks associated with impermanent loss. The oversubscribed funding round, which saw a 15x oversubscription, secured $5 million in just two weeks. Investors snapped up 10% of the token supply (100 million YB tokens) at a valuation of $50 million, with a six-month cliff followed by two years of linear vesting.
Egorov, a vocal advocate for innovation in the DeFi ecosystem, has emphasized that significant strides are being made in the space, despite a lack of recognition from the broader market. Yield Basis is poised to showcase this innovation with its innovative approach to liquidity provision.
The project is currently in the “test-in-production” phase, undergoing rigorous audits and testing before a full-scale launch. Egorov has hinted at modifications to automated market makers that will reduce impermanent loss, offering a unique solution to DeFi participants.
The token distribution plan for Yield Basis allocates 30% of the total supply for community incentives, 25% for the team, and the remaining portions for development reserves and collaborations. Egorov has suggested that Curve technology licensing could be leveraged to support liquidity pools, particularly for crvUSD, the stablecoin associated with Curve Finance.
Prior to the official launch, the TON Foundation partnered with Curve Finance to enhance yield-bearing token exchanges and optimize swap processes, setting the stage for the successful rollout of Yield Basis. With its innovative approach to liquidity provision and a strong focus on minimizing impermanent loss, Yield Basis is set to make waves in the DeFi space and offer new opportunities for tokenized Bitcoin and Ether holders to maximize their returns.