On October 15, Yield Basis (YB) garnered market attention far beyond expectations before its listing on Binance, with a 7-fold oversubscription and several times premium before trading, which is the result of the project itself, market sentiment, and the halo of the founding team. What charm does this project led by the founder of Curve have?
01 Project Background: The big shot stands on stage, strength is extraordinary
● YB is not an ordinary project; it is backed by a truly influential figure in the DeFi field—the founder of Curve, Michael Egorov.
This big shot is well-known in the DeFi circle, and the Curve Finance he created is now a giant in decentralized exchanges.
Indicator
Data for Q1 2025
Trading volume
35 billion dollars
Number of transactions
About 5.5 million transactions
Now, Michael Egorov is back in the market with YB, targeting the most challenging core pain point for liquidity providers (LP) in the DeFi ecosystem — impermanent loss.
● What is the 'thorn in the heart' of DeFi: impermanent loss?
Simply put, impermanent loss is the potential value loss that liquidity providers endure due to price fluctuations of tokens in the liquidity pool compared to simply holding the tokens.
● Why does it happen?
Under the automatic market maker (AMM) mechanism, liquidity pools maintain balance through the formula X * Y = K. When the price of one token in the pool changes dramatically (for example, ETH rises against USDC), the system adjusts the asset ratio in the pool to maintain a constant product K, causing the number of appreciated tokens held by LP to decrease and the number of depreciated tokens to increase.
● Why is it a problem?
This means that even if the token price increases, the returns from providing liquidity to the pool may be lower than the asset appreciation from simply holding the tokens. This greatly hinders more funds, especially large funds, from safely participating in DeFi liquidity provision.
● YB's breakthrough strategy: turning volatility into profits
YB aims to solve this problem through innovative automatic leveraged AMM technology. Its core idea is not to passively endure losses, but to actively manage volatility risks, transforming market fluctuations into potential gains. This mechanism is specifically designed for liquidity of mainstream assets like BTC/ETH, aiming to allow liquidity providers to avoid impermanent losses while earning more profits.
● Strong ecological endorsement
Even more impressively, YB has obtained a $60 million crvUSD credit line approved by Curve DAO to launch its Bitcoin liquidity pool. This not only provides robust financial support but also signifies its official recognition and deep integration with Curve, equating to receiving a VIP pass to the top DeFi club.
02 Core gameplay: Turning volatility into profits
What kind of magic does YB have?
● Traditional liquidity providers fear market volatility the most, as volatility means impermanent loss. YB's solution is clever—by using automatic leveraged AMM technology, it directly converts volatility into profits.
Imagine this: while others lose money in volatility, YB makes money in volatility, which is its core gameplay.
● Specifically, YB designs liquidity pools targeting mainstream coins like BTC and ETH, using smart contracts to automatically adjust configurations, always maintaining the best leverage ratio. It’s like having a smart robot helping you do high-frequency trading, and it never rests.
● Compared to traditional DeFi projects, YB's biggest selling point is: it tackles problems that others cannot solve. This value proposition is quite attractive, especially in the current context where DeFi growth has hit obstacles.
03 Token economics: Understanding the secrets behind the numbers
Let’s interpret YB's token distribution in the most straightforward manner:
Allocation direction
Ratio
Interpretation
Community incentives
30%
The largest piece, indicating that the project intends to play long-term
Team and investors
50%
Team 25% + Investors 25%, note the unlocking time
Curve DAO
7.5%
Bonding with big names, deep cooperation
Development reserve
15%
Keep ammunition, continue development
Source: AiCoin compiled
● From a valuation perspective, YB's fully diluted valuation reaches $1.4 billion, and the pre-market trading price has already increased seven-fold compared to the financing price. This number is quite astonishing, indicating that the market has given it a top-tier project pricing.
● But investors need to be cautious: what does a $1.4 billion valuation mean? Compared to some established DeFi projects, this starting point is indeed not low. Early participants are already seeing a seven-fold profit on paper; will they take profits after the opening? This is a question to ponder.
04 Market heat: Crazy buying spree
YB's market heat is phenomenal:
● There was a 7x oversubscription for the subscription on the Legion platform, akin to a highly anticipated brand-new phone that sold out within minutes of opening global pre-orders.
● The pre-market price has already soared to $1.4, which is seven times higher than the $0.2 entry price for institutional investors. This means that even before formal trading, early players have already made a windfall.
● Binance's limited-time subscription has played up the hype—only 2 hours, and it limits subscriptions to a maximum of 10% of the total supply. This form of hunger marketing further heightened market FOMO emotions.
This heat is not an isolated phenomenon. The total locked value of the BNB Smart Chain is nearly $8.6 billion, ranking third among all public chains. YB can be said to have hitched a ride on the tailwind.
05 Investment advice: View the excitement calmly
Facing such a lively scene, how should investors make decisions?
● Short-term players need to stay alert: if the opening price is significantly higher than $1.4, consider taking profits first. Remember, crowded places are the easiest to trample. If there are consecutive increases in the previous two days, gradually reducing positions is a good choice.
● Long-term investors need not rush to enter: wait for the project product to launch and see the real TVL data before acting. Short-term value may have already been advanced, and waiting for a pullback may be a better strategy.
● Most importantly, risk management: Although YB has a strong background, it is still an early project. Technical risks, market risks, and unlocking selling pressure all need to be considered. Don't jump in with a full position due to FOMO emotions.
The story of YB reflects the urgent demand in the current DeFi market—people are tired of conceptual hype and crave products that can genuinely solve problems.
Although there are still uncertainties ahead, YB at least points to a clear direction: the next explosive DeFi project must be those that can solve real pain points and are supported by genuine demand.
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