๐จ ๐๐๐ ๐๐๐๐ ๐๐ซ๐จ๐ฆ ๐๐ฎ๐ซ๐ฏ๐ ๐ ๐ข๐ง๐๐ง๐๐! ๐จ
๐๐ก๐ ๐ฉ๐ซ๐จ๐๐ฅ๐๐ฆ ๐จ๐ ๐ข๐ฆ๐ฉ๐๐ซ๐ฆ๐๐ง๐๐ง๐ญ ๐ฅ๐จ๐ฌ๐ฌ ๐ฆ๐ข๐ ๐ก๐ญ ๐๐ข๐ง๐๐ฅ๐ฅ๐ฒ ๐๐ ๐๐๐๐๐๐! ๐ฅ๐ก
For years, liquidity providers (LPs) in DeFi have suffered losses when asset prices shift after depositing them into liquidity pools. This discourages many from participating โ but not anymore!
๐ง Curve founder Dr. Michael Egorov has introduced a revolutionary solution: Yield Basis โ a smart protocol designed to tackle impermanent loss using creative leverage and math-based innovation! ๐๐
๐ Here's how it works:
Instead of relying on the old model where impermanent loss is tied to the square root of price changes (which hurts LPs when prices move ๐), Yield Basis squares the math โ literally! โโก๏ธโ๏ธ
๐ต It uses compounded leverage, keeping your positions 200% overcollateralized by borrowing crvUSD (Curveโs decentralized stablecoin). This maintains balance and eliminates the square root problem at the core of impermanent loss! ๐๐ช
But thatโs not allโฆ
๐ฅ Yield Basis offers LPs a choice:
โ Receive rewards in tokenized Bitcoin (BTC) ๐ฐ
โ Or stake & earn with the native YB token ๐
๐ In bull markets, people may want YB for big gains.
๐ป In bear markets, Bitcoin yield offers safer returns.
This flexible approach controls inflation, stabilizes emissions, and builds true market value over time! ๐โก๏ธ๐
๐ Curve Finance is once again pushing the limits of DeFi. Could this be the beginning of a new era for LPs? ๐๐
