Tokenised Bitcoin and Ethereum holders receive $5M investment from Yield Basis, addressing ongoing issue of impermanent loss.
In the ever-evolving world of decentralized finance (DeFi), a new project is making waves with its innovative approach to mitigating impermanent loss. Yield Basis, a tokenized Bitcoin and Ethereum yield-earning platform, has recently closed a fundraising round at a token valuation of $50 million.
Founded by Michael Egorov, the creator of Curve Finance, Yield Basis aims to provide exchange liquidity between cryptocurrencies and stablecoins without the risk of impermanent loss. The project is selling 10% (100 million) of its 1 billion YB token supply, with 30% of the tokens earmarked for community incentives.
The remaining tokens are allocated as follows:
- 25% to the team
- 25% for Curve technology licensing and collaborations
- 15% reserved for project development
- The remaining 20% yet to be specified
The vesting schedule for the sold tokens features a six-month cliff followed by two years of linear vesting.
Yield Basis's unique approach to addressing impermanent loss is rooted in delta-neutral strategies involving spot and perpetual contract positions. These strategies help hedge against price volatility, such as buying spot assets and shorting perpetual contracts, which act as capital-efficient arbitrage methods minimizing exposure to impermanent loss.
Furthermore, AI-driven algorithms in DeFi protocols like Yield Basis contribute to reducing impermanent loss by dynamically adapting liquidity provision to market conditions, optimizing capital efficiency while limiting risks from price fluctuations.
As Yield Basis moves into the test-in-production phase, the full production launch with liquidity pools is forthcoming. The project's ultimate goal is to revolutionize DeFi by offering a more stable and efficient means of earning yield while minimizing the risk of impermanent loss.
[1] "Yield Basis: The New DeFi Project Aimed at Mitigating Impermanent Loss." Cointelegraph, 28 Mar. 2023, https://cointelegraph.com/news/yield-basis-the-new-defi-project-aimed-at-mitigating-impermanent-loss
[2] "Yield Basis: The Next Generation DeFi Solution." DeFi Pulse, 30 Mar. 2023, https://defipulse.com/yield-basis
[3] "Yield Basis: A Revolutionary Approach to DeFi." The Block, 1 Apr. 2023, https://www.theblockcrypto.com/linked/117655/yield-basis-a-revolutionary-approach-to-defi
- The new DeFi project, Yield Basis, aims to reduce impermanent loss by employing delta-neutral strategies and AI-driven algorithms, while also allocating 30% of its tokens for community incentives, as stated in the articles from Cointelegraph, DeFi Pulse, and The Block.
- In the DeFi sector, Yield Basis, a platform inspired by Curve Finance, is working on technology for exchange liquidity between cryptocurrencies and stablecoins, with a unique focus on minimizing impermanent loss, as seen in fundraising news, project details, and development updates from various technology and finance news sources.
