Yield Basis Project Aims to Tackle Impermanent Loss in DeFi

Michael Egorov, founder of Curve Finance, has introduced a new project called Yield Basis, designed to tackle impermanent loss in decentralized finance (DeFi). The project has successfully raised $5 million in funding at a token valuation of $50 million, with the goal of offering a solution for tokenized Bitcoin and Ether holders, helping them earn yield from market-making while reducing the risks associated with impermanent loss.

The funding round, which was oversubscribed by 15x, raised $5 million in just two weeks. The funds were raised at a valuation of $50 million, with 10% of the token supply (100 million YB tokens) sold to investors. The tokens will follow a six-month cliff, followed by two years of linear vesting.

Addressing Innovation in DeFi

Egorov, voicing his stance on the DeFi ecosystem, previously stated,

“I strongly disagree that innovation is not happening in DeFi. It does! The market just does not recognize it enough […]”

Yield Basis Project Details

Egorov confirmed the news of the fundraise and the details of the project, explaining that Yield Basis is currently in the “test-in-production” phase, with audits and testing underway. The full-scale launch will take more time, but the platform is expected to reduce impermanent loss through innovative modifications to automated market makers.

The project’s token distribution plan allocates:

  • 30% of the total supply for community incentives
  • 25% for the team
  • Remaining portions for development reserves and collaborations

According to Egorov, the Curve technology licensing may be used to support liquidity pools, especially for crvUSD, the stablecoin of Curve Finance.

Partnerships and Future Plans

Prior to this launch, Curve Finance partnered with TON Foundation to facilitate yield-bearing token exchanges and optimize swap processes. As Yield Basis continues to develop, it may have a significant impact on the DeFi ecosystem and the way tokenized assets are traded and managed.

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