Market volatility is your yield. Learn how Yield Basis works.
What is Yield Basis and how does it work?
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Yield Basis is a decentralized liquidity provisioning protocol built on Ethereum. It enables users to deposit BTC and ETH assets and earn yield directly from market volatility — without suffering impermanent loss. Yield Basis achieves this through an innovative rebalancing mechanism that captures trading fees as real yield, creating a new standard for DeFi liquidity markets.
How does Yield Basis protect against impermanent loss?
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Traditional liquidity providers suffer impermanent loss when asset prices diverge. Yield Basis addresses this by using a yield-bearing vault structure combined with automated rebalancing. Each time the pool rebalances, it realizes trading yield that accumulates for depositors. The result is a liquidity position that turns price movement into profit rather than loss.
What markets are available on Yield Basis?
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Yield Basis currently offers four active markets: cbBTC, tBTC, WBTC, and WETH. Each market supports two yield sources — Trading Yield (earned from the market's volatility activity) and Token Yield (earned as YB token emissions by depositing liquidity). The total TVL across all Yield Basis markets exceeds $170M.
What is the YB token and veYB?
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YB is the native governance and incentive token of the Yield Basis protocol. Users can lock YB to receive veYB (vote-escrowed YB), which grants voting power over protocol governance decisions and the ability to direct YB emissions to specific liquidity markets. veYB holders can also earn boosted rewards by voting on the gauge system.
How do I start earning yield on Yield Basis?
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Getting started on Yield Basis is straightforward: connect your Ethereum wallet, browse the available markets on the Earn page, select your preferred asset and yield source, and deposit. Yields accrue automatically — no active management required. You can monitor your position, claim rewards, and manage your deposits at any time through the Yield Basis interface.
