The Rollup
How To Earn Real Bitcoin Yield Without Impermanent Loss with Michael Egorov
May 3, 2025
Michael Egorov, the founder of Curve and creator of Yield Basis, joins the discussion to tackle the notorious impermanent loss in DeFi. He unveils his innovative approach to leverage liquidity tokens for real Bitcoin yield, without the usual risks. The conversation delves into the complex landscape of decentralized finance, addressing the challenges of liquidity and governance mechanisms. Egorov also explores user preferences for yield options and the relationship between Bitcoin's stability and yield generation. A must-listen for crypto enthusiasts!
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Quick takeaways
- Michael Egorov's Yield Basis project addresses impermanent loss in DeFi by using constant leverage on liquidity tokens for stable Bitcoin yield.
- The platform aims to harmonize user interests through governance tokens while prioritizing sustainable and profitable returns in the volatile crypto market.
Deep dives
The Evolution of Stablecoin Swaps
Stablecoin swaps have transformed the DeFi landscape, as exemplified by Curve's approach to liquidity management. Curve innovated by adapting the traditional X times Y equals K model into a concentrated liquidity model, offering enhanced efficiency for stablecoin exchanges. This adjustment facilitated improved liquidity by allowing users to swap stablecoins without experiencing the volatility seen in other crypto assets. The initial success of Curve, evidenced by rapid liquidity accumulation, demonstrated the effectiveness of this model in meeting market demands.
