Recently, the trend of new project launches has been in full swing. In the previous issues, the #Buidlpad new project launches have been quite rewarding for our fans and partners. This time, the first launch project of #Legion x #Kraken, @yieldbasis, is also worth paying attention to! 🧐
The registration process for both platforms is relatively simple and very friendly to Chinese users, with a smooth KYC process. @legiondotcc allows registration with a passport and a credit card bill, all in one go. You can rest assured about the security of the #Legion fundraising platform, as it is backed by investments from North American exchanges like Coinbase, Kraken, and Cryptocom. Link: http://legion.cc
On the other hand, the registration process for @krakenfx is a bit more complicated and requires some patience, but you can also register with just a passport. Link: http://kraken.com
Today, we will focus on their first project launch, @yieldbasis, and why I personally think this is a very noteworthy opportunity. 👇
In traditional #DeFi, the biggest fear is impermanent loss. This is like an invisible tax, especially if you want to provide liquidity (LP) with #BTC; you will basically get cut. The mechanism of AMM is such that when #BTC rises, it sells a portion of your holdings, and when it falls, it buys back. The result is that you end up with less #BTC, and it just so happens to be at a higher price. In the long run, many people find that it’s better to just hold #BTC without moving it.
This is also why so much #BTC is just sitting there collecting dust: out of 19.6 million BTC, less than 2% has entered #DeFi. #ETH already has #stETH, which has released $15 billion in liquidity just through staking, driving the entire ecosystem's development; meanwhile, #BTC remains locked out. This is a huge pain point and market demand.
Therefore, #YieldBasis aims to completely solve the issue of impermanent loss for #BTC LP. The mastermind behind this is the renowned Michael Egorov @newmichwill (the founder of #Curve, yes, that Curve, the most proven AMM protocol in #DeFi with a TVL of over $2.9 billion). His experience with AMM is absolutely at a godfather level in the industry.
His strategy is built through mathematical innovation:
• 2× leverage + automatic rebalancing → ensures that your position always aligns 1:1 with the price of #BTC. In other words, you won’t lose out on the gains from #BTC's rise due to the buying and selling mechanism of AMM.
• You can still earn transaction fees + incentives, rather than being passively cut.
• The entire process is automated; users only need to deposit #BTC → receive #ybBTC → and passively earn returns without needing to monitor the market, hedge, or adjust positions like professional market makers.
Moreover, it does not rely on "airdrop subsidies" for fake profits. The earnings mainly come from real market trading fees; the greater the volatility, the more you earn. This explains why it can perform well in both bull and bear markets—because as long as there are people exchanging #BTC and stablecoins, you can share in the profits. Historical backtesting data from the past six years shows an annualized return of about 20% (denominated in #BTC). I find this data quite reliable, at least much healthier than those protocols that rely on "token mining."
This can be seen as a milestone revolution because, for the first time, ordinary #BTC holders can provide liquidity like institutions and large holders, maintaining full exposure to #BTC while earning stable returns.
What’s even more remarkable is that this issuance is quite special. Generally, for projects of this level, early opportunities are usually monopolized by large VCs and institutions, and by the time retail investors can buy in, the FDV has already exceeded a billion dollars. But this time, the collaborative event organized by #Kraken and #Legion gives us ordinary investors a chance to get in directly.
• Fundraising scale: $5M (of which $1M is Legion merit-based pre-sale)
• FDV: $200M
• 100% TGE unlock (no locking for half a year or a year before you can sell)
• Pre-sale: September 29
• Public sale: October 1
To put it plainly: this means you can stand on equal footing with institutions and #Kraken, entering at a relatively reasonable valuation. It’s worth noting that #Curve had a peak FDV of $20 billion, and even now it has a valuation of $2 billion.
Overall, the "stETH moment" for #BTC has yet to occur. The size of #BTC is several times that of #ETH, and once #ybBTC is accepted by the market, the scenarios can be limitless, such as collateralization, borrowing stablecoins, derivatives margin, integrating with various #DeFi vaults and yield aggregators, and even paving the way for BTC L2. So, the potential for imagination is quite large. Through #Kraken and #Legion, we ordinary investors have a rare opportunity to participate in the #YieldBasis ICO right from the start. We must seize this opportunity! 🧐
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