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Yield Basing (YB) is a new DeFi mechanism that uses leverage to eliminate non-perpetual loss (IL) from AMMs. The founder of Yield Basis is Same founder of CurveAnd synergy exists between the two. The mechanisms of action of this mechanism can be found here.
After years of failed attempts, YB struck me as my first leg solution, but you don’t have to take my word for it. YB already represents The three largest BTC DEX aggregators In DeFi ($400M+).
Furthermore, this means that holders of BTC tokens (wrapped) can now earn yield while providing liquidity. Historically, the seven-day moving average of this yield (bid) has ranged between 4% and 40%.
Since many of us don’t invest in AMMs (unless we’re farming something), you may have forgotten that returns are generated through pooled tokens. So, yes, this means original Bitcoin returns.
source: Valueverse
As for the symbol itself, it is not abstract Mimi Governance token – there is actual value. the Switch fees It was commissioned earlier this month. YieldBasis LPs have two options to generate a return from the liquidity provided: (a) hold the ybBTC LP token and receive the BTC-denominated trading fee, or (b) stake the ybBTC, forgo the BTC-denominated trading fee and participate in the YB emissions.
And Corporate Finance 201 agrees with me when I say: “Don’t buy back the token, give me the profits from the protocol, and I can decide for myself if and when I want to buy the token.” What I mean is that dividends give a choice, especially when you can choose what type of return you want to get. For perspective, for the week ending December 25, approximately $450,000 was distributed (and this number is despite the caps on LP pools).
source: Valueverse
If you’ve read this and think there’s finally a way to earn an original return on BTC without IL and without the risk, effort and costs of hedging, then you’re right – but there may be more. YB is positioned as more than just IL-free financial management: it is a yield and liquidity infrastructure designed to make non-performing assets yield while creating secondary markets. By targeting local wrapped assets and tokenized RWAs, YB could theoretically make any sufficiently liquid and volatile assets productive, allowing issuers to profit from liquidity rather than supporting market making, while also enabling holders to access yielding and downstream DeFi use cases such as collateral.
This model extends beyond major cryptocurrencies like BTC and ETH to commodities and token stocks like gold, silver, and NVDA, whose on-chain adoption is currently limited by IL, shallow liquidity, and the absence of return or liquidation paths. A return basis can unlock these markets by offering a unique, superior return option with an attractive risk-reward profile, deep liquidity, and strong network effects.
YB is not without risks. I encourage you to read the paper (or get the AI to explain it) and understand the potential downsides, but also the potential upsides that YB offers.
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