Michael Egorov raises $5m for Yield Basis, a new DeFi liquidity solution

Michael Egorov, founder of Curve Finance, has introduced a new project called Yield Basis, designed to tackle impermanent loss in decentralized finance.

According to The Block, which obtained a pitch deck, the project has successfully raised $5 million in funding at a token valuation of $50 million. Yield Basis aims to offer a solution for tokenized Bitcoin and Ether holders, helping them earn yield from market-making while reducing the risks associated with impermanent loss.

The funding round, which was oversubscribed by 15x, raised $5 million in just two weeks. The funds were raised at a valuation of $50 million, with 10% of the token supply (100 million YB tokens) sold to investors. The tokens will follow a six-month cliff, followed by two years of linear vesting.

Egorov, voicing his stance on the defi ecosystem, told crypto.news last July, “I strongly disagree that innovation is not happening in defi. It does! The market just does not recognize it enough […]”

Innovative approach to liquidity provision

Egorov confirmed to The Block the news of the fundraise and the details of the project. He explained that Yield Basis is currently in the “test-in-production” phase, with audits and testing underway. The full-scale launch will take more time, but the platform is expected to reduce impermanent loss through innovative modifications to automated market makers.

The project’s token distribution plan allocates 30% of the total supply for community incentives, 25% for the team, and the remaining portions for development reserves and collaborations. According to Egorov, the Curve technology licensing may be used to support liquidity pools, especially for crvUSD, the stablecoin of Curve Finance.

Crypto.news had reported that TON Foundation partnered with Curve Finance to facilitate yield-bearing token exchanges and optimize swap processes prior to this launch.