Yield Basis deposits grew from 1.7 million crvUSD to 3.8 million crvUSD in less than two weeks, an increase of more than 120%. The growth reflects rising demand for strategies that generate BTC-denominated yield without requiring investors to sell their bitcoin holdings. In traditional automated market maker strategies, sharp rises in BTC can leave liquidity providers worse off than passive holders — according to Yield Basis, a 2x move in bitcoin can put LPs about 5.7% behind. The protocol's model aims to reduce impermanent loss while preserving exposure to BTC and ETH price movements.
Yield Basis Uses Leveraged Curve Positions to Preserve BTC Exposure
Yield Basis was designed to generate BTC and ETH-denominated yield while reducing the impermanent loss that can occur in AMM-based liquidity provision. The protocol's model lets users deposit BTC and borrow an equal value of crvUSD. That creates a 2x leveraged BTC/crvUSD liquidity position on Curve. A built-in AMM and virtual pool automatically rebalance the position.
By keeping debt at 50% of the position, Yield Basis says the LP value can move 1:1 with the bitcoin price, helping users maintain exposure while earning trading fees. Rebalancing is handled by the protocol, with costs covered by interest on borrowed crvUSD.
In May 2026, Yield Basis introduced Hybrid Vaults, which combine crypto assets with yield-bearing crvUSD positions. The design allows users to earn both crypto-denominated yield and stablecoin-based yield within one strategy.
Michael Egorov, founder of Curve Finance and Yield Basis, said the trend shows rising demand for infrastructure that makes crypto assets more productive. "Investors are increasingly looking for ways to generate yield or access liquidity without fully exiting their positions," Egorov said. He added that this gives users more flexibility across different market conditions.
Protocol Reports $126M TVL and $3.3B Cumulative Volume
The protocol has surpassed $3.3 billion in cumulative trading volume and generated $3.95 million in protocol fees. Total value locked stands at about $126 million, including more than $100 million across BTC pools. The latest Hybrid Vault activity includes liquidity from WETH and cbBTC pools. From May 25 to June 9, deposits rose by about 2.1 million crvUSD.
FAQ
What did Yield Basis deposits do in under 2 weeks?
Yield Basis deposits grew from 1.7 million crvUSD to 3.8 million crvUSD in less than two weeks, an increase of more than 120%.
How does Yield Basis preserve BTC exposure while generating yield?
Yield Basis lets users deposit BTC and borrow an equal value of crvUSD to create a 2x leveraged BTC/crvUSD liquidity position on Curve. By keeping debt at 50% of the position, the protocol says the LP value can move 1:1 with the bitcoin price, helping users maintain exposure while earning trading fees.
What is Yield Basis' total value locked?
Total value locked stands at about $126 million, including more than $100 million across BTC pools. The protocol has surpassed $3.3 billion in cumulative trading volume and generated $3.95 million in protocol fees.
