Yield Basis (YIELD)

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Overview

Yield Basis (ticker: YB or “YIELD token”) is a DeFi protocol that lets people supply Bitcoin liquidity on Ethereum while tracking BTC performance 1:1 and still earning swap fees. The core idea: instead of suffering the “impermanent loss” that hurts many AMM liquidity providers, the Yield Basis blockchain deployment on Ethereum pairs user BTC with borrowed crvUSD to keep a constant 2× compounding leverage. A special rebalancing AMM and “virtual pool” nudge arbitrageurs to restore that 2× target any time price moves, so the position follows BTC like a mirror and collects fees along the way. In practice, users deposit a wrapped BTC (like WBTC, cbBTC, or tBTC) and receive ybBTC, a receipt token that represents their share of the underlying leveraged BTC/crvUSD Curve LP position. (docs.yieldbasis.com)

Under the hood, YB is an ERC‑20 on Ethereum, with governance handled through veYB (vote‑escrowed YB). Locking YB for longer boosts voting power and gives a share of protocol revenue (“admin fees”) that the system diverts from pool fee income using a dynamic formula. veYB positions are NFTs that can be transferred under specific conditions, linking the project’s design to NFTs in a native, functional way. (docs.yieldbasis.com)

From a market point of view, the YIELD price is set by supply and demand across venues that support YB. While live market stats update separately, this page focuses on fundamentals: how the protocol works, what the YIELD token does, and where the project may be headed next.

History & Team

Yield Basis was introduced in early 2025 as a new protocol from Curve Finance founder Michael Egorov. Reporting in mid‑February 2025 indicated the project raised $5 million in a token round at a $50 million fully diluted valuation, selling 10% of supply to investors with a six‑month cliff and two‑year linear vest. Coverage noted the round was completed in roughly two weeks and was heavily oversubscribed. (coinspeaker.com)

On August 18, 2025, Egorov proposed on the Curve governance forum that Curve’s DAO create a crvUSD credit line for Yield Basis. The plan outlined a phased credit limit up to $60 million in crvUSD to seed three BTC pools (WBTC, cbBTC, tBTC), each initially capped at $10 million. Vote discussion centered on benefits to Curve’s ecosystem and a mechanism to return 35%–65% of Yield Basis value to veCRV holders, alongside a 25% allocation of YB to the Curve ecosystem. (gov.curve.finance)

By September 25, 2025, news outlets reported that the Curve DAO approved the proposal, clearing the way for launch on Ethereum. The approved approach embedded crvUSD more deeply into DeFi flows and made the three BTC pools possible at mainnet scale. (cointelegraph.com)

To support initial token distribution, Kraken announced “Kraken Launch,” featuring a public YB sale on October 1, 2025 (outside the US, Canada, and Australia). Kraken’s support pages describe the sale terms and confirm YB’s total supply of 1 billion. (support.kraken.com)

The issuer behind YB is Basis Yield AG. Its MiCA‑format white paper (last updated August 25, 2025) describes YB as an ERC‑20 on Ethereum with a fixed 1,000,000,000 supply and lays out token distribution, governance, and project details. (docs.yieldbasis.com)

Technology & How It Works

Eliminating Impermanent Loss with 2× Compounding Leverage

In a classic constant‑product AMM (x·y=k), LP value grows with the square‑root of price and tends to lag simply holding when the market trends. Yield Basis removes that “p‑drag” by keeping positions at 2× compounding leverage. Here’s the flow: when you deposit BTC, the protocol borrows an equal USD value of crvUSD, pairs both into a Curve BTC/crvUSD pool, and uses the LP token as collateral for the debt. A rebalancing AMM plus a virtual pool then makes it profitable for arbitrageurs to fix any drift from the 50/50 debt‑to‑value target in one atomic transaction. The end result is that the LP position tracks BTC 1:1 while still earning trading fees from Curve. (docs.yieldbasis.com)

ybBTC Receipt Tokens

Depositing BTC mints ybBTC (ERC‑20) that represents your share of the leveraged LP position. You can hold ybBTC to collect fee yield in BTC terms or stake it to receive YB emissions instead of direct fees, depending on which path you prefer. The protocol’s design keeps both choices competitive: as more holders stake for emissions, unstaked holders receive a larger slice of fees; as fewer stake, emissions are concentrated among those who do. (docs.yieldbasis.com)

veYB Governance and NFT Positions

Locking YB creates veYB. Voting power scales with lock length (up to four years), and veYB holders receive a share of protocol revenue via the “admin fee” slice from the underlying pools. veYB positions are NFTs; certain transfer rules apply to keep governance coherent and long‑term aligned. veYB holders also influence emissions through a gauge system that directs where new YB go. (docs.yieldbasis.com)

Contracts and Chain

Yield Basis operates on Ethereum mainnet. Core contracts, gauges, and market addresses (for WBTC, cbBTC, and tBTC markets) are published in the project’s documentation, along with the YB token address and DAO contracts. (docs.yieldbasis.com)

Tokenomics & Utility

Supply and Distribution

According to the MiCA white paper (updated August 25, 2025), YB’s fixed supply is 1,000,000,000 tokens on Ethereum. The distribution at public launch is described as: Investors 12%; Team 25%; Incentives 30% (algorithmic emissions); Protocol development 7.5%; Ecosystem 12.5%; Curve Licensing 7.5%; Initial liquidity and early incentives 3%; Public offering 2.5% (fully unlocked). This official breakdown supersedes early third‑party drafts and ensures clarity around Yield Basis tokenomics. (docs.yieldbasis.com)

Utility

• Governance: YB holders can lock for veYB to vote on emissions, parameters, and other proposals.
• Revenue share: veYB receives a share of admin fees collected from leveraged pools.
• Emissions: Staked ybBTC can receive YB emissions, creating a trade‑off between near‑term token rewards and immediate BTC‑denominated fee yield for unstaked holders.
• Alignment with Curve: A specific allocation supports Curve ecosystem alignment, reflecting how the protocol integrates with Curve pools and the crvUSD credit line. (docs.yieldbasis.com)

This structure aims to balance long‑term governance, liquidity growth, and user choice—core elements of Yield Basis tokenomics.

Ecosystem & Use Cases

Bitcoin‑Native Liquidity

Yield Basis is focused first on BTC wrappers on Ethereum—WBTC, cbBTC, and tBTC. Users deposit a preferred wrapper, mint ybBTC, and choose to hold for fee yield or stake for YB emissions. Because positions are designed to follow BTC 1:1, ybBTC becomes a simple way to seek “real yield” from market activity without losing BTC exposure. (docs.yieldbasis.com)

Governance and veYB

Protocol participants who want a say in emissions and parameters lock YB to veYB. The vote‑escrow model, inspired by veCRV, makes governance power a function of time commitment. Since veYB positions are NFTs, they could also fit into NFT‑aware dashboards or custody systems—an example of “Yield Basis DeFi, NFTs, gaming” connections where NFT mechanics serve real protocol roles rather than collectibles only. (docs.yieldbasis.com)

Institutional and DAO Treasuries

Because the system generates fee yield from BTC trading while minimizing IL by design, it can be attractive to treasuries looking for BTC‑denominated yield options that are transparent and on‑chain. Media coverage and the Curve DAO proposal framing highlight how Yield Basis may deepen crvUSD demand and integrate with existing DeFi routing, which in turn can help professional users structure repeatable strategies. (gov.curve.finance)

Future Extensions

The docs describe multi‑wrapper BTC support and a general framework that could be extended to other assets over time. As integrations grow, ybBTC might become accepted as collateral in third‑party lending, structured products, or even game economies that plug in tokenized yield flows—expanding the “Yield Basis DeFi, NFTs, gaming” surface without changing the core 2× re‑leveraging design. (docs.yieldbasis.com)

Advantages & Challenges

Advantages

• Eliminates IL by construction: The 2× compounding leverage and rebalancing AMM/virtual pool keep positions aligned with BTC, while still earning fees. (docs.yieldbasis.com)
• Choice of yield paths: Hold ybBTC for BTC‑denominated fees or stake for YB emissions; both paths are balanced by a dynamic admin‑fee model. (docs.yieldbasis.com)
• Strong ecosystem fit: Built to work with Curve pools and crvUSD, with explicit alignment in distribution and governance touchpoints. (coindesk.com)
• Clear on‑chain governance: veYB gives time‑weighted voting and revenue share; positions are NFT‑based for portability under rules. (docs.yieldbasis.com)

Challenges

• Reliance on rebalancing and arbitrage: The mechanism assumes arbitrageurs react efficiently to restore the 2× target using the rebalancing AMM and virtual pool. (docs.yieldbasis.com)
• Dependency on crvUSD facilities: The Curve DAO credit line underpins pool seeding and liquidity structure, tying growth to DAO governance outcomes. (cointelegraph.com)
• Young protocol dynamics: As a 2025 launch with novel mechanics, incentive tuning (admin‑fee curve, emissions, gauge votes) will be a key ongoing task for veYB governance. (docs.yieldbasis.com)

Where to Buy & Wallets

YB is an ERC‑20 on Ethereum. The MiCA white paper confirms the 1B fixed supply, and the official docs list the canonical YB token address and other core contracts. Always verify the contract via the Yield Basis documentation before interacting. (docs.yieldbasis.com)

Kraken featured Yield Basis as the debut project on “Kraken Launch,” hosting a public YB sale on October 1, 2025, with details such as a fixed sale price, a 2.5% public allocation, and regional availability limits. Kraken stated that YB would be tradable upon listing after the sale, with an announcement to follow. Depending on your region and eligibility, this provides one clear example of where to buy YIELD. Standard EVM wallets like MetaMask, plus hardware wallets that support Ethereum (e.g., Ledger, Trezor), can hold YB, veYB NFTs (via lock positions), and ybBTC. (kraken.com)

Because the YIELD price changes over time, live market metrics appear in the dynamic data module on this page rather than in the text.

Regulatory & Compliance

The project’s MiCA white paper (Other Token format) for the European Union, last updated August 25, 2025, identifies the issuer as Basis Yield AG and describes YB’s characteristics, governance, and distribution. The document states it complies with Title II of Regulation (EU) 2023/1114 (MiCA) but has not been approved by a competent EU authority. This provides a baseline for the Yield Basis regulatory status in Europe. (docs.yieldbasis.com)

On the exchange side, Kraken’s public sale materials note geographic availability limits (not offered to residents of the US, Canada, or Australia). This is a practical signal that regional rules vary and distribution is being shaped jurisdiction by jurisdiction. (support.kraken.com)

Halal/Shariah: Is Yield Basis halal? As of October 11, 2025, there is no official statement or recognized certification that the YIELD token or Yield Basis protocol is shariah compliant. So the short answer is “No—there is no confirmation.” The project documentation and MiCA white paper do not claim “YIELD shariah compliant” status, and the core design relies on trading‑fee revenue and automated leverage using crvUSD rather than a sukuk‑like structure. Investors who follow Islamic finance standards such as AAOIFI generally look for explicit certification; none has been announced for Yield Basis to date. (docs.yieldbasis.com)

Future Outlook

If the Curve DAO alignment continues, Yield Basis could become a major BTC yield primitive on Ethereum, with veYB directing emissions and shaping where liquidity grows. The approved crvUSD credit line and BTC pool set (WBTC, cbBTC, tBTC) lay a foundation for scaled participation that remains close to BTC exposure. Over time, integrations may extend to additional wrappers, structured vaults, and cross‑protocol use of ybBTC as collateral. The team’s public materials also suggest an intent to keep incentives balanced through the dynamic admin‑fee schedule and the veYB gauge system, giving the community tools to adapt to changing market conditions. (cointelegraph.com)

On distribution, Kraken Launch and Legion’s reputation‑based access model established an initial path to broad token ownership. As secondary listings and DeFi integrations expand, discovery and utility for YB could grow, while the YIELD price will reflect how users value governance, revenue share, and the fee dynamics of BTC trading on Curve. (blockworks.co)

Summary

Yield Basis is a focused attempt to turn market volatility into fee income without sacrificing BTC exposure. By pairing deposits with borrowed crvUSD at 2× compounding leverage and using a rebalancing AMM plus a virtual pool, it aims to kill impermanent loss at the root and turn liquidity provision into a cleaner, BTC‑tracking position. The YIELD token sits at the center through veYB governance, admin‑fee revenue share, and emissions steering. With a MiCA‑format white paper, an Ethereum mainnet deployment, a Curve DAO‑approved crvUSD credit line, and a high‑visibility token sale on Kraken Launch, the project has checked key boxes for early growth. As integrations deepen across DeFi—and possibly into NFT‑aware and gaming‑adjacent experiences via NFT‑based governance positions—Yield Basis could become a staple primitive for BTC‑native yield. For readers comparing fundamentals, this article covered the Yield Basis blockchain design, Yield Basis tokenomics, where to buy YIELD in eligible regions, and current notes on Yield Basis regulatory status and Yield Basis halal considerations, so you can understand the architecture behind the live metrics you’ll see in the YIELD price section. (docs.yieldbasis.com)