Yield Basis (YB)

Impermanent loss is one of the main trade-offs in DeFi liquidity provision. It occurs when the value of tokens deposited into a pool changes relative to simply holding those assets, which can reduce or even outweigh the fees earned by the liquidity provider. This problem is especially important for Bitcoin holders, because many prefer to maintain BTC exposure rather than take on additional price risk from paired assets. Yield Basis targets that issue by structuring liquidity provision around BTC in a way that is designed to preserve the user’s exposure while still allowing participation in fee-generating market activity.

The project sits within the broader DeFi market for yield products, AMMs, and Bitcoin-linked liquidity infrastructure. Rather than presenting yield as a fixed return, Yield Basis connects potential earnings to trading activity in liquidity pools, meaning outcomes depend on market demand, volume, fees, and protocol design. Its appeal is strongest for users who want to put Bitcoin to work on-chain without accepting the usual AMM compromise between passive fee income and asset underperformance. The YB asset represents exposure to this ecosystem and its attempt to make BTC-based liquidity provision more efficient, predictable, and accessible within decentralised markets.