Curve Founder Michael Egorov Launches Yield Basis to Boost Bitcoin On-Chain Yields

Michael Egorov, the creator of Curve Finance, has unveiled Yield Basis, a decentralized protocol designed to bring sustainable yield opportunities to Bitcoin holders while solving one of DeFi’s most persistent problems, impermanent loss (IL).

Tackling Bitcoin’s yield problem

For years, Bitcoin investors have had few options to earn meaningful on-chain returns. Lending platforms typically offered under 1%, while liquidity pools exposed users to IL whenever token prices diverged. Even under favorable conditions, yields rarely exceeded 1–2%.

Yield Basis aims to rewrite that equation by eliminating IL altogether, allowing deeper BTC liquidity to flow on-chain and creating yield opportunities attractive enough for institutional players.
Early launch with capped pools

To manage adoption, the protocol is debuting with three pools capped at $1 million each. Egorov says the model borrows heavily from Curve’s battle-tested design, incorporating a vote-escrow system (veYB) for governance. Token holders must lock YB to participate in governance and receive protocol fees, which can be distributed in Curve’s crvUSD stablecoin or wrapped Bitcoin.

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Value-protecting incentives

Unlike many DeFi protocols that flood markets with token rewards, Yield Basis ties incentives directly to yield performance. Egorov describes the system as “value-protecting,” ensuring liquidity providers are rewarded sustainably rather than through unsustainable emissions.

With its focus on Bitcoin and institutional-grade design, Yield Basis positions itself as a fresh contender in the race to unlock DeFi-native returns without the risks that have long limited adoption.