Michael Egorov Raises $5M for Yield Basis, a New DeFi Liquidity Solution

Michael Egorov, the founder of Curve Finance, has announced the launch of a new decentralized finance (DeFi) project called Yield Basis. The platform aims to tackle the issue of impermanent loss in DeFi and provide a solution for holders of tokenized Bitcoin and Ether to earn yield from market-making activities.

Yield Basis has successfully raised $5 million in funding at a token valuation of $50 million. According to The Block, the fundraising round was oversubscribed by 15x, securing the funds in just two weeks. Investors acquired 10% of the total token supply, which consists of 100 million YB tokens. These tokens will be subject to a six-month cliff, followed by two years of linear vesting.

Egorov, a well-known figure in the DeFi ecosystem, previously stated his belief that innovation is still thriving in the DeFi space, even if the market has yet to fully recognize it. He is optimistic that Yield Basis can drive further innovation by offering a solution that minimizes impermanent loss, a challenge faced by many liquidity providers.

The project is currently in its “test-in-production” phase, with audits and testing in progress. The platform aims to reduce impermanent loss through innovative modifications to automated market makers (AMMs). Egorov confirmed that Yield Basis might leverage Curve Finance’s technology to support liquidity pools, particularly for crvUSD, Curve’s stablecoin.

The token distribution plan for Yield Basis allocates 30% of the total supply for community incentives, 25% for the team, and the remainder for development reserves and collaborations. Additionally, the project has collaborated with the TON Foundation, which has worked with Curve Finance to optimize yield-bearing token exchanges and the swap process.

Egorov’s new venture seeks to further advance DeFi solutions by addressing key pain points for liquidity providers, with a focus on reducing the risks associated with impermanent loss.