Curve Finance Founder Michael Egorov Launches Bitcoin Yield Protocol
Michael Egorov, the founder of Curve Finance, has introduced Yield Basis, a decentralized protocol aimed at providing sustainable on-chain yields for Bitcoin holders while eliminating impermanent loss—a significant issue in decentralized finance. Traditional lending markets offer minimal returns, while automated market maker (AMM) pools often expose users to the risk of losing value when prices fluctuate. Yield Basis reengineers the AMM model to eliminate this risk, enabling better liquidity and yield opportunities for institutional and professional investors. Initially, the protocol will feature three capped liquidity pools with a deposit limit of $1 million each. With $5 million raised in funding, Yield Basis incorporates a vote-escrow mechanism for governance, requiring token holders to lock their tokens to participate in decision-making and earn protocol fees. Although focused on Bitcoin, there are plans to apply this impermanent loss solution to Ethereum and other assets in the future.
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