Yield Basis: Michael Egorov’s Bitcoin Yield Innovation

Introduction: A new chapter for Bitcoin Yield

 

Michael Egorov, best known as the founder of Curve Finance, has launched Yield Basis, a decentralized finance (DeFi) protocol designed to unlock sustainable on-chain Bitcoin yield. The project addresses one of the greatest risks in DeFi — impermanent loss — and introduces an innovative governance structure to reshape the BTC yield landscape.

 

The challenge of Bitcoin Yield in DeFi

 

   • Low returns: Traditional lending platforms rarely offer more than 1–2% annual yield for BTC holders.

   • Risk of impermanent loss: In AMM systems, liquidity providers often lose value when token prices diverge.

   • Institutional barriers: Professional investors hesitate to allocate Bitcoin into risky DeFi pools.

 

This long-standing problem created an urgent demand for a safer and more efficient BTC yield solution.

 

Yield Basis: Eliminating impermanent loss

 

Yield Basis is designed with a re-engineered AMM model that completely removes impermanent loss. At launch, the protocol will introduce three liquidity pools with deposit caps to control risk and encourage a balanced start.

 

This approach allows BTC holders to generate sustainable yield while preserving their core capital.

 

Governance through veYB Tokenomics

 

The protocol introduces a governance system called veYB:

   • Users lock YB tokens to participate in governance.

   • Locked tokens grant voting rights and access to protocol fees.

   • Rewards can be distributed in wrapped Bitcoin (wBTC) or Curve’s crvUSD stablecoin.

 

Unlike most DeFi protocols, Yield Basis does not rely on high token emissions. Instead, emissions are tied directly to actual yield performance, aligning incentives with long-term sustainability.

 

Backing and launchpad support

 

In early 2025, Yield Basis raised $5 million in funding. It also became the first project to launch on the Legion/Kraken joint launchpad, signaling strong institutional interest.

 

This financial and strategic backing provides a stable foundation for scaling Yield Basis into a multi-asset protocol.

 

Beyond Bitcoin: Future expansion plans

 

While Yield Basis is currently focused on Bitcoin, Michael Egorov plans to extend the model to:

   • Ethereum (ETH)

   • Tokenized commodities

   • Equities (stocks)

 

This could transform Yield Basis into a universal yield platform that bridges traditional assets with decentralized infrastructure.

 

Conclusion: A potential game-changer for BTC Yield

 

If successful, Yield Basis could:

   • Establish Bitcoin as an income-producing asset.

   • Increase institutional confidence in DeFi yield.

   • Redefine how on-chain yield is structured across multiple asset classes.

 

With Egorov’s track record at Curve and strong initial funding, Yield Basis may mark the beginning of a new era for decentralized yield generation.

 

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.