Can DeFi Season Come Back with the Launch of Yield Basis? I think the three selling points of @yieldbasis are: – Built by Michael Egorov (founder of Curve, OG of DeFi infrastructure). – Unlock DeFi on BTC: $2.3T+ market cap, but only 0.3% staked in DeFi. – Fixes Impermanent Loss (IL) at the Root: LP BTC without impermanent loss while still earning Curve fees. ✨ So, how does it solve the impermanent loss problem? 1/ Why IL? In traditional AMMs, when you LP with BTC + stablecoin: – If BTC goes up, the pool sells some of your BTC to rebalance → you profit less than if you just hold BTC. – If BTC goes down, the pool buys more BTC → you hold more BTC while it’s falling, resulting in a loss. This is called Impermanent Loss. Some protocols have tried to solve IL with token incentives but ended up with killing the chart. 2/ How Yield Basis (YB) Removes IL at the Root You deposit BTC in Yield Basis and receive ybBTC. → YB borrows crvUSD equal to the amount of your deposited BTC. → YB adds BTC/crvUSD into Curve with 2x leverage and receives LP tokens. ▫️ Why 2x leverage? This makes your position akin to being 100% exposed to BTC, not split between BTC and stablecoins → it’s like depositing in a one-sided liquidity pool. 👉 The Result: – Your LP value moves 1:1 with BTC price → no IL. – And you still earn trading fees from Curve. You receive ybBTC (which represents your deposited BTC): – Hold ybBTC → hold the full amount of BTC + earn fees from LP. – With ybBTC, you can even earn more by staking, lending, or engaging in other activities in the DeFi space. The token $YB just finished its sale on @legiondotcc and Kraken at a $200M FDV. $YB is now trading at a $900M FDV on the premarket → ~5X so far. But I don’t care much about the price; what makes me keep an eye on YB is how it aims to bring #DeFi summer for BTC holders. Other protocols built on top of ybBTC may emerge soon!