Yield Basis is making BTC real

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Yield Basis (YB) is a new DeFi system that uses methods to solve permanent losses (IL) from AMMs. The originator of the Yield Basis is same developer as Curveand there is a bond between the two. The mechanics of how this machine works can be found Here.

After years of seeing failed attempts, YB strikes me as the first answer with legs, but you don’t have to take my word for it. YB already has an account for 3 main BTC DEX pools in DeFi ($400 million+).

Also, this means that (encrypted) holders of BTC tokens can now get a yield while giving money. Historically, the seven-day moving average for this yield (yield) has been between 4% and 40%.

And since most of us don’t make LP in AMMs (unless we’re growing something), you may have forgotten that the produce is obtained in water tanks. So yes, it means that the BTC yield is native.

Source: Valueverse

But the sign itself, is not a meme authority symbol – there is real value. The price changes it was activated earlier this month. YieldBasis LPs have two ways to generate a yield from the invested funds: (a) own the ybBTC LP token and receive the trading fees that are associated with BTC, or (b) stake ybBTC, leave the trading fees generated by BTC and participate in YB’s output.

Corporate Finance 201 agrees with me when I say, “Don’t buy the token anymore, give me the benefits from the protocol, and I can decide for myself if I want to buy the token.” What I mean is, dividends offer opportunities, especially when you can choose the type of dividend you will receive. To see, for the week ending December 25, about $450,000 was distributed (and this number does not include caps on LP pools).

Source: Valueverse

If you have read this and thought that there is a way to get native yields on BTC without IL and without the risk, effort and cost of hedging, then you would be right – but there could be more. YB is in a better place than AMM without IL: It is a productive and profitable way to make unproductive products bear fruit and establish secondary markets. By looking at wild products wrapped in tokenized RWAs, YB is able to create a fully liquid and immovable economy, allowing investors to find investment funds instead of funding the market, as well as making it possible for owners to get yields and lower DeFi cases for use as collateral.

The model goes beyond crypto majors like BTC and ETH to popular assets like Gold, Silver, and NVDA, whose onchain adoption is hindered by IL, lack of liquidity, and lack of yield or withdrawal methods. Yields can unlock these markets by offering unique, high-yield opportunities with high risk reward, financial leverage and strong network effects.

YB has no risk. I encourage you to read the paper (or have the AI ​​explain it) and understand the potential problems, and the openings that YB presents.

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