Tokenized Bitcoin and Ethereum holders receive $5M funding through Yield Basis to combat temporary loss issues
Yield Basis, a new project aimed at mitigating impermanent loss in decentralized finance (DeFi), was recently unveiled by Curve Finance's founder Dr. Michael Egorov on August 2, 2025. The project is expected to be a significant step towards addressing the issue of impermanent loss in the rapidly evolving DeFi landscape.
In DeFi, impermanent loss occurs when liquidity providers' returns from assets committed (including fees and token rewards) fall below what they would have earned if they had simply held onto their assets. Yield Basis aims to transform this by minimizing the risk of impermanent loss.
Currently, Yield Basis is in the test-in-production phase, moving closer to a full production launch with liquidity pools. The project has raised $5 million in a funding round, with 10% (100 million) of its 1 billion YB token supply sold to investors.
Of the total tokens, 25% will go to the team, another 15% will be reserved for project development, 30% will be distributed to community incentives, and the remaining 20% will be split between Curve technology licensing and collaborations. The vesting schedule for the sold tokens features a six-month cliff followed by two years of linear vesting.
Despite the excitement surrounding Yield Basis, no formal timeline for its full production launch has been provided. The project is still in its early stages, and further official updates or announcements from the project would be needed to specify the timeline definitively.
It's worth noting that Egorov's post did not mention the use of token tricks or exotic options to mitigate impermanent loss. Instead, the potential to profitably provide exchange liquidity between cryptocurrencies and stablecoins without impermanent loss was emphasized.
While other projects in this domain have detailed timelines extending into 2026 for full ecosystem launches, Yield Basis’s recent unveiling in early August 2025 suggests that the full production launch is likely imminent. However, no precise confirmed timeline is publicly documented yet.
In conclusion, Yield Basis, a promising protocol aimed at mitigating impermanent loss in DeFi, was recently introduced by Curve Finance's founder. While the full project launch will take more time, the project has the potential to revolutionize the DeFi landscape by minimizing the risk of impermanent loss.
- The community eagerly awaits official updates or announcements from the team behind Yield Basis to learn the specific timeline for the full production launch of the new DeFi project.
- With the recent $5 million funding round and the emphasis on profitably providing exchange liquidity between cryptocurrencies and stablecoins, technology plays a crucial role in the successful implementation of Yield Basis.
