On October 15, Yield Basis (YB) garnered market attention far beyond expectations before its launch on Binance, with a 7x oversubscription and pre-market premiums several times over. This phenomenon is the result of the project itself, market sentiment, and the halo effect of the founding team. What is the charm of this project led by the founder of Curve?
01 Project Background: Big Names Endorse, Exceptional Strength
● YB is not an ordinary project; it is backed by a true big name in the DeFi field—Curve founder Michael Egorov.
This big name is well-known in the DeFi circle, having created Curve Finance, which is now a giant in decentralized exchanges.
Metrics
Q1 2025 Data
Trading Volume
$35 billion
Number of Trades
Approximately 5.5 million
Now, Michael Egorov is returning to the market with YB, targeting the most challenging core pain point for liquidity providers (LPs) in the DeFi ecosystem—impermanent loss.
● What is the "thorn in the heart" of DeFi: Impermanent Loss?
In simple terms, impermanent loss is the potential value loss that liquidity providers suffer due to price fluctuations of tokens in the liquidity pool compared to simply holding the tokens.
● Why does it happen?
Under the automated market maker (AMM) mechanism, the liquidity pool maintains balance through the formula X * Y = K. When the price of one token in the pool fluctuates sharply (for example, the price of ETH rises relative to USDC), the system automatically adjusts the asset ratio in the pool to maintain a constant product K, resulting in a decrease in the number of appreciated tokens held by LPs and an increase in the number of depreciated tokens.
● Why is it a problem?
This means that even if the token price rises, the returns from providing liquidity to the pool may be lower than the asset appreciation from simply holding the tokens. This greatly hinders more funds, especially large funds, from confidently participating in DeFi liquidity provision.
● YB's Solution: Turning Volatility into Profit
YB aims to solve this problem through innovative automated leveraged AMM technology. Its core idea is not to passively endure losses but to actively manage volatility risk, turning market fluctuations into potential profits. This mechanism is specifically designed for the liquidity of mainstream assets like BTC/ETH, aiming to allow liquidity providers to avoid impermanent loss while earning more returns.
● Strong Ecological Endorsement
Even more impressive, YB has obtained a $60 million crvUSD credit line approved by Curve DAO to launch a Bitcoin liquidity pool. This not only provides substantial financial support but also signifies official recognition and deep integration with Curve, equivalent to obtaining a VIP pass to the top DeFi club.
02 Core Gameplay: Turning Volatility into Profit
What magic does YB possess?
● Traditional liquidity providers fear market volatility because volatility means impermanent loss. YB's solution is clever—it directly converts volatility into profit through automated leveraged AMM technology.
Imagine this: while others are losing money in volatility, YB is making money from it; this is its core gameplay.
● Specifically, YB designs liquidity pools specifically for mainstream coins like BTC and ETH, using smart contracts to automatically adjust configurations, always maintaining the optimal leverage ratio. It's like having a smart robot helping you with high-frequency trading, and it never takes a break.
● Compared to traditional DeFi projects, YB's biggest selling point is: it solves problems that others cannot. This value proposition is quite attractive, especially against the backdrop of current DeFi growth challenges.
03 Token Economics: Understanding the Secrets Behind the Numbers
Let’s interpret YB's token distribution in the most straightforward way:
Distribution Direction
Proportion
Interpretation
Community Incentives
30%
The largest portion, indicating the project aims for long-term engagement.
Team and Investors
50%
25% for the team + 25% for investors, note the unlocking time.
Curve DAO
7.5%
Binding with big names for deep cooperation.
Development Reserve
15%
Keeping reserves for continuous development.
Source: AiCoin整理
● In terms of valuation, YB's fully diluted valuation reaches $1.4 billion, with pre-market trading prices already 7 times the financing price. This figure is quite astonishing, indicating that the market has priced it as a top-tier project.
● However, investors need to be cautious: What does a $1.4 billion valuation mean? Compared to some established DeFi projects, this starting point is indeed not low. Early participants have already seen a 7x unrealized gain; will they take profits after the opening? This is a question to consider.
04 Market Heat: A Frenzied Buying Wave
The market heat for YB is phenomenal:
● The subscription on the Legion platform saw a 7x oversubscription, akin to a highly anticipated new phone selling out within minutes of global pre-orders opening.
● The pre-market price has already soared to $1.4, compared to the institutional investors' $0.2 entry price, a full 7 times increase. This means that even before formal trading, early players have already made substantial profits.
● The limited-time subscription on Binance Wallet played up the hype—only 2 hours, with a cap of 10% of the total supply for subscriptions. This kind of hunger marketing further heightened market FOMO sentiment.
This heat is not an isolated phenomenon. The total locked value on the BNB Smart Chain is close to $8.6 billion, ranking third among all public chains. YB can be said to be riding the wave.
05 Investment Advice: Stay Calm Amidst the Excitement
In the face of such a lively scene, how should investors make decisions?
● Short-term players need to stay clear-headed: if the opening price is far above $1.4, prioritize taking profits. Remember, the livelier the place, the easier it is to get trampled. If there are consecutive increases in the first two days, gradually reducing positions is a good choice.
● Long-term investors need not rush in: wait for the project product to launch and see the real TVL data first. Short-term value may have already been preempted, and waiting for a pullback might be a better strategy.
● Most importantly, risk management: although YB has a strong background, it is still an early-stage project. Technical risks, market risks, and unlocking sell pressure all need to be considered. Don’t rush in with full positions due to FOMO sentiment.
YB's story reflects the urgent demand in the current DeFi market—people are tired of concept hype and crave products that can truly solve problems.
Although uncertainties lie ahead, YB at least points to a clear direction: the next explosive DeFi project will definitely be those that can solve real pain points and have genuine demand backing.
Join our community to discuss and grow stronger together!
Official Telegram community: https://t.me/aicoincn
AiCoin Chinese Twitter: https://x.com/AiCoinzh
OKX Benefits Group: https://aicoin.com/link/chat?cid=l61eM4owQ
Binance Benefits Group: https://aicoin.com/link/chat?cid=ynr7d1P6Z
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
