YieldBasis, DeFi’s Most Anticipated Q4 Launch is Finally Taking Shape During Token2049, few names were whispered more than YieldBasis. Founded by Curve’s Michael Egorov, the project aims to do something almost no AMM has ever achieved: eliminate impermanent loss while keeping full yield exposure. Now, as momentum builds and listings approach, the narrative is heating up again, and it’s hard not to be bullish. Turning IL Into Carry YieldBasis transforms the old constant product AMM into a leveraged carry trade. Instead of LPs passively bleeding IL, the protocol keeps a constant 2× leveraged BTC and stablecoin position, giving LPs linear 1:1 BTC exposure while still earning Curve fees. Each deposit flash-borrows crvUSD, adds both sides to Curve’s BTC and crvUSD pool, and reuses the LP token as collateral, ending up with a 50/50 debt-equity position. When BTC moves, a Rebalancing AMM and VirtualPool mechanism lets arbitrageurs restore the 2× ratio by minting or burning LPs and crvUSD as needed. The result is that LPs hold pure BTC exposure, earn trading fees, and avoid impermanent loss. This is essentially TradFi basis trading rebuilt on chain. The Curve Flywheel 2.0 YieldBasis doesn’t reinvent the wheel, it supercharges it. It borrows crvUSD directly from Curve’s $60M credit line to bootstrap three BTC pools, and its dynamic fee model mirrors the legendary veCRV gauge design. Half of the fees go to rebalancing, while the other half is split between LPs and veYB holders. The more YB gets staked, the more fees veYB earns. This creates the same reflexive governance loop that made Curve the backbone of DeFi, now applied to leveraged yield markets. The $5M Raise and Legion Frenzy The project recently closed a $5M raise, representing 2.5% of total supply at a $200M FDV, split evenly between Kraken Launch and Legion. Phase 1 was a merit-based round for high-reputation Legion users with strong on-chain, GitHub, and social activity. Phase 2 opened to the public across Kraken and Legion. The Legion sale was oversubscribed by 98 times, which led to sybil filtering and a “barbell” allocation approach that rewarded both top contributors and thousands of genuine community members. All tokens are fully unlocked at TGE, and excitement from this raise is fueling even more attention. Why This Setup Feels Bullish Curve’s backing with a $60M crvUSD credit line gives it a real liquidity foundation. A design that eliminates IL while maintaining leveraged BTC exposure is something truly new. The dual raise through Legion and Kraken ensures a strong, distributed community base. Michael Egorov’s involvement brings proven DeFi credibility. And the market narrative around BTC yield, real yield, and DeFi 2.0 is aligning perfectly. @yieldbasis @llamaintern