What is Yield Basis (YB)? An Introduction to Digital Assets

What Exactly is Yield Basis (YB) and Why Should You Care?

Yield Basis (YB) is a blockchain-based cryptocurrency that powers the Yield Basis decentralized platform, focused on unlocking sustainable, on-chain yield for Bitcoin holders. Launched in early 2025, Yield Basis (YB) was developed to address the persistent challenge of low, risky, or inaccessible yield opportunities for BTC in decentralized finance (DeFi). With its innovative automated market maker (AMM) model and vote-escrow governance, Yield Basis enables users to earn yield on Bitcoin without exposure to impermanent loss, while ensuring security, capital efficiency, and transparent community governance through the Yield Basis ecosystem.

Meet the Team: Who's Building Yield Basis and Their Track Record

Yield Basis (YB) was founded in 2025 by Michael Egorov, the creator of Curve Finance, a leading DeFi protocol known for its robust AMM infrastructure and governance models. Egorov and his team bring deep expertise in blockchain engineering, DeFi protocol design, and financial mathematics, having previously built and scaled Curve to a multi-billion-dollar ecosystem. Their mission with Yield Basis is to solve the problem of sustainable, risk-mitigated yield for Bitcoin and other major assets by leveraging advanced AMM technology and decentralized governance within the Yield Basis platform.

Since its inception, Yield Basis has achieved several significant milestones:

• Raised $5 million in seed funding from prominent DeFi investors in early 2025.
• Launched its mainnet with capped liquidity pools to ensure stable early adoption and risk management for the Yield Basis (YB) token.
• Secured a $60 million crvUSD credit line from Curve DAO, marking a major strategic partnership and liquidity boost for the protocol.
• Debuted on the Legion launchpad, with early community access to the Yield Basis (YB) token sale.
• Gained industry attention for its impermanent loss-free AMM model and vote-escrow (veYB) governance, positioning Yield Basis as an innovator in the Bitcoin DeFi sector.

Yield Basis Ecosystem: Products That Make It Work

The Yield Basis ecosystem consists of several interconnected products that provide a comprehensive solution for Bitcoin and Ethereum holders seeking yield:

1. Yield Basis AMM Platform
   The core platform is an AMM that allows users to deposit Bitcoin (wrapped BTC or CBcoin) into single-asset pools. The Yield Basis protocol borrows Curve's crvUSD stablecoin to apply leverage, maintaining a 200% collateralization ratio. Automated bots rebalance positions to track Bitcoin's spot price, eliminating impermanent loss and enabling users to earn trading fees or YB token rewards.
2. veYB Governance System
   Yield Basis implements a vote-escrow (veYB) model, where users lock YB tokens to participate in Yield Basis protocol governance and earn a share of protocol fees. This system aligns incentives for long-term participation and allows the community to shape key parameters, such as pool settings and emissions.
3. Curve DAO Integration
   Through a strategic partnership, Yield Basis has access to a $60 million crvUSD credit line from Curve DAO, enhancing liquidity and enabling deeper, more stable yield opportunities for Yield Basis (YB) users. This integration also supports cross-protocol governance and ecosystem growth.

These components work together to create a robust, user-driven environment where YB serves as the utility and governance token, powering all interactions and incentives within the Yield Basis network.

Real Problems Yield Basis (YB) Solves (With Examples)

The DeFi sector, especially for Bitcoin holders, faces several critical challenges that Yield Basis aims to address:

1. Low and Unstable On-Chain Yields
   Bitcoin holders have historically struggled to find attractive, sustainable on-chain yields. Lending markets offer minimal returns, and AMM pools expose users to impermanent loss, often resulting in net losses even in favorable markets. This limits DeFi adoption among BTC holders, which Yield Basis (YB) aims to solve.
2. Impermanent Loss in AMMs
   Traditional AMMs require users to provide liquidity in pairs, exposing them to impermanent loss when asset prices diverge. This risk deters participation and undermines yield strategies, especially for volatile assets like BTC. The Yield Basis platform specifically addresses this challenge.
3. Lack of Transparent, Aligned Governance
   Many DeFi protocols lack robust, community-driven governance, leading to misaligned incentives and opaque decision-making. This can result in unsustainable emissions and poor protocol upgrades.

Yield Basis addresses these pain points through:

• An AMM model that eliminates impermanent loss by using leverage and automated rebalancing within the Yield Basis ecosystem.
• Single-asset pools, allowing users to deposit only BTC and still earn yield through Yield Basis (YB).
• A vote-escrow governance system (veYB) that aligns incentives and empowers the community to guide Yield Basis protocol evolution.

By leveraging these innovations, Yield Basis (YB) provides a secure, efficient, and transparent solution for Bitcoin yield generation.

Yield Basis (YB) Tokenomics: Supply, Distribution & Your Benefits

Total Issuance of Yield Basis (YB)

The total supply of the Yield Basis (YB) token is 1,000,000,000 (1 billion) YB. This figure is consistently reported across multiple sources and is a key parameter in the Yield Basis project's tokenomics.

Proportional Distribution (Token Allocation)

The distribution of YB tokens is structured as follows, based on available public information:

Note: The remaining 30% (investor sales, Curve ecosystem licenses, partners) is described as being "evenly distributed" among these three categories, implying a 10% allocation to each. However, some sources list a public sale allocation of 5% (50,000,000 YB), which may be a subset of the broader "investor sales" category or reflect a specific round (e.g., IEO). Always verify with the latest official documentation, as Yield Basis tokenomics can evolve during and after launch.

Additional Details

• Governance: YB token holders can participate in Yield Basis protocol governance, typically by locking tokens in a vote-escrow (veYB) system, similar to Curve's model.
• Incentives: Liquidity providers must choose between receiving BTC-denominated fees or YB token rewards, a design that may impact token demand depending on market conditions.
• Launch: The protocol launched with capped liquidity pools to manage initial adoption, and the Token Generation Event (TGE) is scheduled for October 15, 2025.
• Curve DAO Involvement: Curve DAO holds a portion of YB tokens (reported as 7.5% in one source), which may relate to the "Curve ecosystem licenses" allocation within the Yield Basis ecosystem.

Data Quality and Official Sources

• No official white paper or detailed tokenomics document is directly cited in the search results. The above breakdown is synthesized from third-party coverage and should be cross-referenced with the Yield Basis project's official channels for the most accurate and up-to-date information.
• For real-time data and official announcements, users are directed to Yield Basis's social media (Twitter, Discord, Telegram), but no direct link to a white paper or comprehensive tokenomics page is provided in the search results.
• Always verify allocations and vesting schedules with the project's official documentation, as third-party summaries may not reflect the latest updates or nuanced vesting conditions for Yield Basis (YB).

Summary Table

Recommendations for Users

• Check the official Yield Basis website and white paper (if published) for the definitive Yield Basis (YB) token allocation and vesting schedule.
• Monitor project social channels for announcements regarding changes to Yield Basis tokenomics or distribution.
• Be aware of regional restrictions for Yield Basis (YB) token sales, as some jurisdictions may be excluded from participation.
• Understand the risks of investing in a new and volatile asset, and perform due diligence beyond third-party summaries of the Yield Basis platform.

If you need the most precise and official data, always refer to the Yield Basis project's primary documentation—unfortunately, such a document is not directly available in the current search results.

Bottom Line: Is Yield Basis (YB) Worth Your Attention?

Yield Basis stands as an innovative solution in the DeFi sector, addressing key challenges for Bitcoin holders through its impermanent loss-free AMM, robust governance, and strategic partnerships. With its growing Yield Basis ecosystem and strong team, Yield Basis (YB) demonstrates significant potential to transform how users earn yield on Bitcoin and participate in decentralized finance. Ready to start trading Yield Basis (YB)? Our comprehensive 'Yield Basis (YB) Trading Complete Guide: From Getting Started to Hands-On Trading' walks you through everything you need to know—from YB fundamentals and wallet setup to advanced trading strategies and risk management techniques. Whether you're new to cryptocurrency or an experienced trader, this step-by-step guide will equip you with knowledge on MEXC's secure platform. Discover how to maximize your Yield Basis (YB) potential today!