Michael Egorov: Yield Basis - Bringing Real Yield to Bitcoin
The Delphi Podcast
Intro
This chapter features a discussion with a key figure in the DeFi sector about his groundbreaking project, Yield Basis. The conversation explores how Yield Basis seeks to eliminate impermanent loss for liquidity providers and its implications for sustainable Bitcoin yields.
Join José Macedo and Yan Liberman as they host Michael Egorov, co-founder of Curve Finance and one of DeFi's original pioneers. Michael introduces Yield Basis — his ambitious new protocol that aims to solve one of DeFi's biggest problems: impermanent loss. Learn how this innovation could finally unlock natural, sustainable yield on Bitcoin at scale, creating the long-sought "holy grail" of yield-bearing Bitcoin without the downsides of traditional AMM strategies.
Curve Finance: www.curve.finance
Yield Basis: https://yieldbasis.com
🎯 Key Highlights
▸ Yield Basis: Eliminates impermanent loss for single-sided crypto exposure
▸ Impermanent loss problem: Why AMMs underperform buy-and-hold
▸ Michael's solution: 2x leverage counters square-root pricing
▸ Why Curve pools beat Uniswap v2
▸ Historical sims: 10-20% APR on Bitcoin
▸ Borrowing mechanism: Capital via crvUSD allocation
▸ Tokenomics: Choose real yield OR tokens
▸ Dynamic admin fees adjust with staking
▸ GTM: Target miners, funds, treasuries
▸ Multi-chain: Separate tokens vs. bridges
▸ Market size: $50-100B addressable
▸ Beyond Bitcoin: ETH and volatile assets
▸ Michael on DeFi vs. OG principles
▸ Challenge: Matching sims to reality
▸ Why this beats points and yield farming
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🧠 Follow the Alpha
▸ Michael's Twitter: @newmichwill
▸ Curve Finance Twitter: @CurveFinance
▸ Yield Basis Twitter: @yieldbasis
🔗 Connect with Delphi
🌐 Portal: https://delphidigital.io/
🐦 Twitter: https://x.com/delphi_digital
💼 LinkedIn: https://www.linkedin.com/company/delphi-digital/
🎧 Listen on
Spotify: https://open.spotify.com/show/62PR1RigLG2YN5Pelq6UY9?si=18ac7ccf36ab4753&nd=1&dlsi=50105fd66e6c4124
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-delphi-podcast/id1438148082
Youtube: https://www.youtube.com/channel/UC9Yy99ZlQIX9-PdG_xHj43Q
Timestamps
00:00 - Intro: Yield Basis and Michael Egorov
01:15 - Yield Basis: Single-sided LP without impermanent loss
02:00 - Impermanent loss with Bitcoin/USDT
07:30 - AMMs create "buy low, sell high"
09:00 - Solution: Leverage eliminates square-root pricing
13:00 - Curve beats Uniswap v2
15:30 - Historical sims: 10-20% APR
19:00 - Borrowing: Arbitrage and debt management
24:30 - Net returns after costs
25:15 - crvUSD as low-cost capital
27:15 - Separate protocol vs. Curve integration
28:00 - Tokenomics: Real yield OR tokens
32:45 - Points vs. transparent distribution
36:00 - Dynamic fees prevent zero-division
40:00 - GTM: Miners, funds, institutions
43:00 - Multi-chain: Instances vs. bridges
48:30 - BD with competing chains
50:30 - Curve vs. Yield Basis governance
52:00 - Modern vs. OG DeFi principles
55:30 - Treasury relationships vs. decentralization
56:30 - Challenge: Real-world performance
58:30 - Market: $50-100B addressable
1:02:00 - crvUSD scaling mechanics
1:06:15 - Market cap ceiling calculations
1:08:00 - Beyond Bitcoin: Gold, volatiles
1:08:45 - DeFi innovations: Pendle, Athena
1:11:30 - Hyperliquid bootstrap strategy
1:12:00 - Closing: Growth parallels
Disclaimer
This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host and members at Delphi Ventures may personally own tokens or art that are mentioned on the podcast. Our current show features paid sponsorships which may be featured at the start, middle, and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product, service or token.
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