Michael Egorov, founder of Curve Finance, launched the basis of the yield, a decentralized protocol developed to provide sustainable Fruit while removing the non -essential loss (IL), one of the long -awaited financial financial challenges.
Bitcoin holders have long faced limited opportunities for on-chain return. Lending markets rarely offer more than one part of a percentage, while automatic market manufacturer (AMM) pools expose users to IL – the risk of losing value when token prices is diverted. Even in the desired conditions, the yields rarely raise 1-2%.
The basis of the yield is ridiculed by renunicating the AMM model. The protocol eliminates the risk of the IL, which Egorov said will enable Bitcoin’s deeper on-chain liquidity and more attractive yield opportunities for institutions and professional investors. To manage early growth, three pools were launched with a $ 1 million deposit cap each.
The system borrows from five years of curve infrastructure, which has adopted a vote-escrow mechanism (Veyb) for management. Token holders must lock their YB to participate in management and earn protocol fees, distributed to either Crvusd Stablecoin or Bitcoin wrap. Unlike many defi projects, token releases are not only given to liquidity providers; They are tied to the position of position, a model Egorov called “value protection.”
The basis of the yield gained $ 5 million in the early 2025 funding and the first project to dedicate the joint legion and Kraken Launchpad, where the community can access its token sale. While Bitcoin is the initial focus, Egorov said the unknown solution to the protocol loss can be expanded to the Ethereum, tokenized commodities or even stock-potential expansion of the scope of assets with the yield.
