YieldBasis, a new project by the Curve team, aims to mitigate impermanent loss through a unique on-chain leverage structure. Users deposit BTC into YieldBasis, which allocates it to Curve's BTC liquidity pool. The system pairs BTC with borrowed crvUSD, providing liquidity to the BTC/crvUSD Curve pool. The resulting LP tokens are used as collateral in a Curve CDP to obtain another crvUSD loan, fully leveraging the position to repay flash loans. This innovative approach is in its early stages, with BTC's stability making it an ideal test asset.
Curve Team Launches New Project YieldBasis to Mitigate Impermanent Loss
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