Yield Basis is a cool project started by Michael Egorov, the guy behind $CRV Curve Finance. The main idea? To get rid of impermanent loss when you add liquidity to AMMs (automated market makers). They do this by using a clever 2x leverage strategy that constantly adjusts your position to match the current price. This way, providing liquidity feels a lot like just holding the actual asset (like BTC), but you still earn fees on top.
The strategy works best on Curve’s CryptoSwap setup, especially when prices don’t swing too wildly, letting the fees you earn cover the borrowing and rebalancing costs. Overall, it’s a smart way to earn while still holding onto BTC-like exposure.
