Quick Guide for Beginners: Why Yield Basis (YB) Is Gaining Attention with Its Kraken Listing

1. What is Yield Basis?

Yield Basis (YB) is a DeFi protocol aimed at providing on-chain yields for Bitcoin holders while reducing impermanent loss for liquidity providers through a new AMM mechanism. It introduces leverage, lending, and rebalancing mechanisms, attempting to cover costs through trading fees, allowing LPs to achieve relatively stable returns even amidst price fluctuations.

2. Overview of Launch Prices and Processes

• Issue price: 0.2 USD / coin YB
• Total supply: 1 billion pieces, of which 2.5% is for public sale (25 million pieces)
• Fully Diluted Valuation (FDV): 200 million USD
• Sales Stage: Priority Allocation + First Come, First Served
• TGE Unlock: Expected to be 100% unlocked immediately upon launch

3. Core Technology: The Logic Behind Zero Impermanent Loss

• Leverage through borrowing: The protocol maintains a balanced ratio by supplementing one side’s assets through borrowing.
• Cost subsidy: Transaction fees are used to pay for borrowing interest and rebalancing expenses.
• Limit on Amount: Initially control the scale of the fund pool to reduce risk.
• Incentive linkage: Those who lock YB (veYB) can participate in governance and receive rewards.

4. Token Design and Revenue Distribution

• The public sale accounts for 2.5%, while the remaining allocation is given to the team, ecosystem, and community incentives.
• Part of the revenue is returned to Curve DAO and veCRV holders.
• veYB governance mechanism binds the interests of long-term holders.

5. Overview of Project Benefits and Risks

Good news:

• The founder has a strong background (Curve founder)
• Bind with the Curve ecosystem
• Supported by the Kraken platform
• The community is very active.

Risk:

• It has not been verified whether the model can run continuously for a long time.
• Market volatility may lead to unexpected losses.
• Governance Concentrated Risk
• The initial pool size is limited.

6. How to participate? Newbie practical guide

• Register a Kraken / Legion platform account.
• Check the sale announcement and participation rules.
• Subscribe during the sale period.
• You can trade freely or choose to lock it as veYB after going live.

7. Summary and Outlook

Yield Basis launches on Kraken, providing BTC users with a brand new on-chain yield entry. Its “zero impermanent loss” design is highly attractive, but the economic model still needs time to be tested. Newbies can try with a small amount, while veterans can follow its long-term operational effects. In the future, if its model succeeds, it may expand to more asset pools such as ETH.