Quick take:
- The project aims to mitigate the risk of “impermanent loss” for market makers by helping them earn yield from tokenised Bitcoin and Ethereum holdings.
- The project is selling 10% (100 million) of its 1 billion YB token supply.
- In DeFi, impermanent loss occurs when liquidity providers’ earnings (including fees and token rewards) fall below compared to if they held on to their assets.
Curve Finance founder Michael Egorov has raised $5 million in a funding round for his tokenised bitcoin and ether yield-earning project Yield Basis. The fundraising was closed at a token valuation of $50 million, The Block reported.
According to the announcement, Yield Basis aims to mitigate the risk of impermanent loss in decentralised finance. Impermanent loss occurs when liquidity providers’ returns from assets committed (including fees and token rewards) fall below compared to if they held on to their assets.
Yield Basis is selling 10% (100 million) of its 1 billion YB token supply to investors, with the vesting schedule featuring a six-month cliff followed by two years of linear vesting.
The project plans to distribute 30% of the tokens to community incentives, with 25% going to the team and another 15% reserved for project development. The remaining 20% is split in half between Curve technology licencing and collaborations.
Commenting on Curve Technology licensing’s allocation, Egorov told The Block, “It is likely that Curve technology licensing will be used to buy votes for crvUSD stable pools,” adding that it “most aligned with the Curve ecosystem and helping YB.”
The fundraising comes just weeks after Egorov posted on X teasing about the new project. “What would you think if you could profitably provide exchange liquidity between cryptos and stables without IL? Without token tricks or exotic options, but with no IL for real?” Egorov wrote.”
According to Egorov, Yield Basis is currently in the test-in-production phase, ahead of a full production launch with liquidity pools.
There is no time frame for when the full project will be rolled out, with Egorov stating it will take more time.
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