Michael Egorov, founding father of Curve Finance, has launched Yield Foundation, a decentralized protocol constructed to supply sustainable yield whereas eliminating impermanent loss (IL), considered one of decentralized finance’s longest-running challenges.
Bitcoin holders have lengthy confronted restricted alternatives for on-chain returns. Lending markets hardly ever provide greater than a fraction of a %, whereas automated market maker (AMM) swimming pools have uncovered customers to IL — the danger of shedding worth when token costs diverge. Even in favorable circumstances, yields hardly ever topped 1–2%.
Yield Foundation tackles this by reengineering the AMM mannequin. The protocol removes IL threat altogether, which Egorov says will allow deeper Bitcoin liquidity on-chain and extra engaging yield alternatives for institutional {and professional} buyers. To handle early progress, three swimming pools launched with a $1 million deposit cap every.
The system borrows from Curve’s 5 years of infrastructure resilience, adopting a vote-escrow mechanism (veYB) for governance. Token holders should lock their YB to take part in governance and earn protocol charges, distributed in both Curve’s crvUSD stablecoin or wrapped Bitcoin. Not like many DeFi tasks, token emissions aren’t merely handed to liquidity suppliers; they’re tied to place yield, a mannequin Egorov calls “value-protecting.”
Yield Foundation secured $5 million in early 2025 funding and is the primary challenge to debut on the joint Legion and Kraken launchpad, the place the group can entry its token sale. Whereas Bitcoin is the preliminary focus, Egorov says the protocol’s impermanent loss resolution may prolong to Ethereum, tokenized commodities and even shares — doubtlessly broadening the scope of yield-bearing property on-chain.