YieldBasis emerges as a promising DeFi protocol designed to tackle one of the biggest challenges in liquidity provision. It’s backed by Michael Egorov, founder of Curve Finance, which immediately gives the project significant credibility. So what is YieldBasis? Let’s dive into this article.
Key Takeaways
- YieldBasis Protocol (YB) is a decentralized finance (DeFi) protocol to solve the problem of impermanent loss in liquidity pools.
- YieldBasis uses a precision 2x leverage system to continuously rebalance positions.
- YieldBasis has completed a fundraising round with a FDV valuation of $50 million.
What is YieldBasis?
YieldBasis ($YB) is a decentralized finance (DeFi) protocol launched by Michael Egorov, founder of Curve Finance, to solve the problem of impermanent loss in liquidity pools.
The protocol uses a precision 2x leverage system to continuously rebalance positions, allowing liquidity providers (LPs) to earn stable yields on assets like Bitcoin without being affected by price volatility.
How does YieldBasis work?
- Continuous 2x Leverage:YieldBasis integrates a built-in continuous 2x leverage mechanism, allowing liquidity providers and traders to gain amplified exposure to Bitcoin without needing to manage leverage manually. This system dynamically maintains equilibrium, so positions automatically adjust in line with real-time Bitcoin price movements. As a result, users can benefit from higher potential returns while avoiding the complexity and risks of traditional leverage management.
- Position Rebalancing: To further protect liquidity providers, the protocol implements automated position rebalancing. This means liquidity is continuously adjusted to hedge against market volatility and minimize the effects of impermanent loss. By actively rebalancing positions, YieldBasis ensures that liquidity providers retain more stable yields, even in highly volatile market conditions.
What does YieldBasis resolve?
Impermanent Loss
Impermanent loss occurs when the value of tokens inside a liquidity pool diverges from simply holding them in a wallet. In DeFi, this is a common risk faced by liquidity providers, especially in pools containing highly volatile assets like Bitcoin.
As prices move, the pool automatically rebalances token ratios, which can lead to a lower overall value compared to just holding the assets. While trading fees and incentives can help offset this, impermanent loss remains a key factor that impacts long-term yield stability.
Volatile Returns
Because assets like Bitcoin are inherently volatile, returns for liquidity providers can also fluctuate. Rapid price swings distort the token ratio within the pool, potentially reducing overall profitability.
This means liquidity providers don’t just face impermanent loss, but also unpredictable yield outcomes—where rewards may look attractive during stable conditions but shrink significantly when markets turn volatile. Effective risk management and automated tools like position rebalancing become crucial in protecting LP returns under such conditions.
YieldBasis Latest Information
According to The Block, YieldBasis has completed a fundraising round with a FDV valuation of $50 million. The fundraising attracted strong interest from investors, with the number of subscriptions to buy tokens exceeding the initial target by 15 times.
Within two weeks, the project raised $5 million by selling 10% of the total supply (100 million YB tokens) to investors. The allocation roadmap will follow a 6-month lock-up mechanism, then gradually pay out tokens over the next two years.
YB Token Information
YB Token Key Metrics
Here is the information of YB token
- Token Name: YieldBasis
- Ticker: $YB
- Token Type: TBA
- Total Supply: 1B $YB
- Contract address (CA): TBA
$YB Use Case
Currently, YieldBasis has not announced any official use case of $YB for the project. Whales Market will update immediately when the official YieldBasis website announces.
$YB Listing
Here are important details revealed to $YB:
- Listing time: TBA
- Confirmed CEX Listings: TBA
- Pre-market Price (Whales Market): $1.3
YieldBasis ($YB) Tokenomics & Fundraising
$YB Tokenomics
- Total Supply: 1B $YB
- Token Allocation:
- Liquidity Incentives: 30%
- Team: 25%
- Ecosystem Reserve: 12.5%
- Investors: 12.1%
- Public Sale: 2.5%
- Community: 3%
- Protocol Development: 7.5%
- Curve Licensing: 7.4%
Fundraising
YieldBasis successfully raised $12.5M in 3 rounds. In addition, YieldBasis launched a exclusive sale program on Binance called Pre-TGE.
YieldBasis Roadmap & Team
Roadmap
Currently, YieldBasis has not announced any official roadmap for the project. Whales Market will update immediately when the official YieldBasis website announces.
Team
Although YieldBasis doesn't public the core team, but Michael Egorov, founder of Curve Finance has confirmed his participation in the project.
Conclusion
YieldBasis emerges as a promising DeFi protocol designed to tackle one of the biggest challenges in liquidity provision, including impermanent loss and volatile returns. With its continuous 2x leverage and automated position rebalancing, the protocol offers liquidity providers a more stable and predictable yield, even in highly volatile markets like Bitcoin.
Disclaimer: This article is for informational purposes only, not investment advice, and Whales Market is not responsible for any of your investment decisions.
FAQs
1. What is the native token of YieldBasis?
The native token of YieldBasis is $YB, used to facilitate coordination across the ecosystem.
2. What is YieldBasis ($YB) pre-market price?
Currently, $YB is trading at $1.3 on Whales Market. Whales Market is the leading pre-market DEX platform to trade pre-TGE tokens and allocations, with over $300 million in volume, no middlemen, trustless and on-chain.
3. What is the price of YieldBasis ($YB) today?
While YieldBasis ($YB) hasn't been listed yet, users can trade $YB pre-market at $0.5 on Whales Market before the TGE. Here you can trade $YB before the asset gets listed on leading CEXes like Binance, Bybit or OKX.
4. What is YieldBasis?
YieldBasis Protocol ($YB) is a decentralized finance (DeFi) protocol to solve the problem of impermanent loss in liquidity pools.
5. How much has YieldBasis ($YB) raised?
According to CryptoRank , YieldBasis has raised a total of $12.5M in 3 funding rounds.
6. What is $YB allocation?
$YB Allocation includes 30% for Liquidity Incentives, 25% for Team, 12.5% for Ecosystem Reserve, 12.1% for Investors, 2.5% Public Sale, 3% for Community, 7.5% for Protocol Development and 7.4% for Curve Licensing.