‍Curve Finance Introduces Yield Basis to Combat Impermanent Loss

Curve Finance has launched Yield Basis, a new protocol designed to mitigate impermanent loss (IL) for tokenized Bitcoin (BTC) and Ether (ETH) liquidity providers (LPs). Spearheaded by Curve founder Dr. Michael Egorov, the solution employs compounding leverage to maintain a 200% overcollateralization, effectively eliminating the "square root problem" that causes IL.

Yield Basis also introduces bifurcated yield options, allowing users to receive their yield in either BTC or the native Yield Basis (YB) token. This provides a dynamic, market-oriented approach to managing inflation and token emissions, adapting to bull and bear market conditions. This innovation is poised to enhance the stability and attractiveness of liquidity provisioning in DeFi.

https://cryptovka.ru/en/news/3351/curve-s-yield-basis-a-breakthrough-solution-to-impermanent-loss