Catenaa, Sunday, February 23, 2025-Michael Egorov, the founder of Curve Finance, said the company had has raised $5 million in funding for his new project, Yield Basis, at a fully diluted valuation of $50 million.
The fundraising, which began in January 2025, concluded in just two weeks, with investor demand oversubscribed by 15 times.
Yield Basis is designed to address impermanent loss, a common issue faced by liquidity providers in decentralized finance (DeFi).
By leveraging Curve Finance’s stablecoin, crvUSD, the platform aims to help Bitcoin and Ethereum holders mitigate the risk of impermanent loss while earning yield through optimized liquidity provision.
The project is selling 10% of its total token supply, equating to 100 million YB tokens out of a total of 1 billion. Investors will be subject to a six-month cliff, followed by a two-year linear vesting period.
Egorov confirmed that the project is currently in a “test-in-production” phase, with audits and testing planned before a full mainnet launch.
Historical data suggests that Yield Basis could have generated an average annual return of 20.5% between 2019 and 2024, with a peak of 60% during the 2021 bull market. The platform is primarily targeting tokenized Bitcoin and Ethereum holders, though Egorov has acknowledged that more volatile assets, such as memecoins, may not benefit from the model.
The success of the fundraising round highlights strong interest in Yield Basis, which has the potential to scale significantly and handle liquidity in the tens of billions.
However, the platform’s reliance on leverage and liquidity rebalancing poses challenges that must be carefully managed for profitability.
