What Is Yield Basis (YB) and How Does Its Leveraged AMM Boost BTC and ETH Returns?

Leveraged AMM boosts BTC and ETH returns while eliminating impermanent loss

Yield Basis, developed by Curve Finance founder Michael Egorov, introduces a revolutionary approach to automated market makers (AMMs) that promises to boost returns for Bitcoin and Ethereum holders while eliminating the persistent challenge of impermanent loss. This innovative protocol, set to debut in Q4 2025, leverages a 2x leverage mechanism to optimize liquidity positions, potentially increasing yields for BTC and ETH holders while maintaining sustainability. By utilizing equivalent lending rather than over-collateralization, Yield Basis aims to create a more efficient and profitable ecosystem for liquidity providers.

The protocol’s unique approach can be illustrated through a comparison of traditional AMMs and Yield Basis:

This innovative system allows users to achieve a $1000 market-making effect with only $500 worth of BTC, effectively doubling the potential returns. The elimination of impermanent loss, a long-standing issue in DeFi, could significantly increase the attractiveness of liquidity provision in the crypto market, potentially leading to more stable and profitable yield generation for BTC and ETH holders.

YB token launched at $0.20 with potential to reach $0.60-$1.00 on listing

The YieldBasis (YB) token has garnered significant attention in the cryptocurrency market since its launch. Initially priced at $0.20, YB has shown remarkable potential for growth, with projections suggesting it could reach between $0.60 and $1.00 upon listing on major exchanges. This price trajectory represents a potential increase of 200% to 400% from its initial offering price. The token’s performance has been closely watched by investors and traders alike, particularly in light of its upcoming listing on a prominent exchange scheduled for October 15, 2025. YB’s total supply of 1 billion tokens indicates a substantial market presence, with a fully diluted market cap of $200 million at its launch price. The token’s actual performance post-listing has been volatile, with price movements reflecting strong market interest. Data shows that YB reached a high of $0.8424 and a low of $0.6218 within its first day of trading, demonstrating the dynamic nature of newly listed cryptocurrencies. This price action aligns with the projected range, suggesting that market analysts’ initial assessments were reasonably accurate. The significant trading volume of over $30 million within 24 hours further underscores the high level of investor engagement with YB.

200-day moving average serves as key support/resistance level for YB price

The 200-day moving average (200 MA) plays a crucial role in analyzing YieldBasis (YB) price trends, serving as a key support and resistance level. As of October 16, 2025, YB’s price stands at $0.6772, significantly below its historical high of $0.8424. This positioning relative to the 200 MA provides valuable insights into market sentiment. When YB’s price remains above the 200 MA, it generally indicates a bullish trend, suggesting strong buyer confidence. Conversely, if the price falls below this level, it may signal a bearish outlook, potentially triggering increased selling pressure. The importance of the 200 MA is further emphasized by its ability to act as a dynamic support or resistance level, often causing price reversals when approached. For instance, during periods of uptrend, the 200 MA can serve as a support level, with prices bouncing off it multiple times before continuing their ascent. In contrast, during downtrends, this same level may act as resistance, repeatedly rejecting price attempts to break above it. Traders and investors closely monitor YB’s interaction with the 200 MA, using it as a key indicator for potential trend shifts and market entry or exit points.