Yield Basis

Yield Basis receives a C+ risk grade (41/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — novel leveraged AMM mechanism with unproven IL-elimination claim and liquidation risk from Curve borrowing, balanced by credible founder. Yield Basis is a novel AMM protocol by Curve Finance founder Michael Egorov that claims to eliminate impermanent loss through 2x leveraged BTC liquidity positions. With $154M TVL since its October 2025 mainnet launch, its C grade reflects the untested nature of its core IL-elimination claim, leverage-related liquidation risks from borrowed crvUSD, and a very short track record.

The key risks identified for Yield Basis are: (1) The protocol's core claim that 2x leverage eliminates impermanent loss is a novel mathematical assertion not tested through extreme market volatility. (2) ybBTC positions involve auto-borrowing crvUSD from Curve to create 2x leverage. If BTC price drops sharply, positions could be liquidated. (3) The protocol launched in October 2025 with less than 6 months of track record. (4) Yield depends on trading volume generating enough fees to offset crvUSD borrowing costs.

Yield Basis scores 41/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 10/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 7/15, Scale Exposure: 5/10, Regulatory Risk: 2/10, Vitality Risk: 2/10. The highest risk area is Interaction Severity at 10/20.

Among 111 rated DEX protocols on Hindenrank, Yield Basis ranks #91 by safety (lowest risk score = safest). Its 41/100 risk score and C+ grade place it among the riskier DEX protocols.

Yield Basis scores 7/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.