Yield Basis Breakthrough: A New Choice for BTC Liquidity Mining and Impermanent Loss

2025-12-31 19:40:10

【Crypto World】Recently, there is a new concept in the DeFi circle called Yield Basis (YB), developed by the founder of a well-known DEX. What makes this mechanism special? It uses leverage as a tool to tackle the most troublesome issue in AMM—impermanent loss.

Currently, YB has integrated funds from the three major DEX pools in the BTC ecosystem, with a total market cap exceeding $400 million. For those holding wrapped BTC, providing liquidity in these pools can earn yields. Historical data shows that the seven-day average return fluctuates between 4% and 40%, which is quite attractive.

It is worth noting that the protocol has recently enabled a fee switching feature. This gives LPs two options: one is to directly collect transaction fees denominated in BTC, and the other is to stake YB to generate yields. Both modes have their advantages and disadvantages, depending on your market outlook.

YB’s ambition is not limited to the BTC ecosystem—it also aims to pave the way for other wrapped assets and tokenized RWA (real-world assets). By providing sufficiently deep liquidity and diversified yield options, the team believes it can unlock the potential of markets like commodities and stocks. This idea is indeed innovative; whether it can be implemented successfully remains to be seen.

BTC-1,04%

YB0,29%

RWA-6,16%

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TokenStorm

· 12h ago

Do you believe in this 4% to 40% fluctuation range? I backtested the data yesterday, and the days of high returns are basically just a last gasp before liquidation. Leverage mining, to put it simply, is just betting that you can run faster than the forced liquidation. I've been liquidated once and don't want to go through it again. The fee switching trick is okay, but on-chain data shows that big players have already quietly exited long ago. We retail investors always find out last. A 400 million market cap sounds big, but how many can really walk away unscathed? The eye of the storm is always the most comfortable; the edges are the meat grinder. YB is indeed innovative technically, but I always view promises of "solving impermanent loss" at half value.

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NFTRegretter

· 12h ago

A 40% return? How easy would it be to get liquidated then? Leverage can't possibly solve impermanent loss; isn't that just closing your eyes and stealing a bell? A 400 million market cap isn't that big; you'll know when something goes wrong. These two fee models sound fancy, but they're really just betting on market direction. This thing just feels like they're rebranding risk and selling it again.

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SchroedingerAirdrop

· 12h ago

4% to 40%, this fluctuation range is truly outrageous, feels just like gambling.

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FortuneTeller42

· 12h ago

Is there finally a solution to impermanent loss? A 4% to 40% return sounds too fantastic... --- Using leverage to deal with impermanent loss—doesn't this logic seem reversed? --- A 400 million market cap, I wonder how much real money can actually remain. --- The fee switching trick isn't bad; at least it provides a choice. --- Another new mechanism is coming, but I feel like the risks are hidden even deeper. --- Staking YB to generate yields... isn't this just the old routine? --- Is it true that BTC liquidity mining can generate stable profits? Why do I find it hard to believe?

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GhostAddressMiner

· 12h ago

A liquidity pool of 400 million USD, why haven't I seen any large fund transfer traces on the chain? The numbers look so impressive that it actually makes me cautious.

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RiddleMaster

· 13h ago

Leverage and impermanent loss again, sounds pretty complicated. I think I'll just wait and see. Really, a fluctuation range from 4% to 40%, can the mindset stay stable? Wait a minute, is this YB about to cut the leeks again?

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