Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies Yield Basis: Disrupting Defi & Bitcoin Yield
Nov 5, 2025
Michael Egorov, founder of Curve Finance and Yield Basis, discusses the innovative mechanisms behind DeFi yield. He highlights Curve's origins in optimizing stablecoin swaps and the mechanics of veCRV governance. The discussion delves into Yield Basis’s approach to impermanent loss mitigation, leveraging BTC paired with crvUSD for enhanced returns. Egorov forecasts a potential 20%+ APY, analyzing recent market volatility and its impact on returns. He emphasizes Yield Basis's role in increasing Curve's liquidity and revenue while outlining the roadmap for future growth.
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Concentrated Liquidity Wins For Pegged Assets
- Curve focused on efficient stablecoin and LST swaps using a bonding curve concentrated around a 1:1 price.
- That concentrated-liquidity design outperformed existing solutions early and scaled to BTC wrappers and LST pairs.
Locking Tokens Aligns Long-Term Interests
- veTokenomics ties voting power to locked token amount and lock duration to align long-term incentives.
- Locking tokens removed supply from circulation faster than buybacks, creating stronger long-term alignment.
Design To Prevent Locking Workarounds
- Remove technical obstacles that discourage long-term locking to enable broader participation.
- Design token mechanics so multi-party wrappers can't easily bypass intended lock incentives.