> ## Content Index > Fetch the complete content index at: https://news.curve.finance/llms.txt > Use this file to discover other available public pages before exploring further. # YieldBasis on Curve: What’s Happened So Far - URL: https://news.curve.finance/yieldbasis-on-curve-whats-happened-so-far/ - Published: 2025-10-22T14:14:16.000Z - Updated: 2025-10-22T14:57:42.000Z - Description: Curve and YieldBasis have seen a wave of DAO activity in recent weeks. Here’s a recap of what has been happening on Curve’s side, focusing on governance and ecosystem impact rather than YieldBasis performance. - Author: mo The Curve and YieldBasis partnership has started on a strong note, with the mutually beneficial relationship benefiting both protocols even amid recent market turbulence. It’s easy to lose track of all the moving parts, so here’s a quick recap of what’s happened so far, and what’s coming next. ### What is YieldBasis and how is it related to Curve? YieldBasis is a protocol built on top of Curve’s liquidity infrastructure that aims to solve one of the longest-standing challenges in AMMs: **impermanent loss (IL)**. It enables users to provide liquidity using various BTC wrappers (currently **cbBTC**, **tBTC**, and **WBTC**) without being exposed to impermanent loss — while still earning trading fees. The mechanism is elegant yet powerful: YieldBasis maintains a **2x compounding leverage** on deposited BTC by matching it with an equal value of **crvUSD**. You can learn more about the mechanics here: [YieldBasis Documentation](https://docs.yieldbasis.com/user/how-it-works). YieldBasis relies on two core components from Curve: - **Curve AMM (specifically: FXSwap)** - **A crvUSD credit line approved by the DAO**, which sustains the 2x compounding leverage on positions. ### **How YieldBasis Benefits Curve** Curve stands to gain a new revenue stream from the **75 million $YB tokens** to be vested to the DAO over the coming years. The current plan is to use these tokens to **expand the crvUSD supply** by incentivizing crvUSD pools, an approach that should, in turn, **boost DAO revenue**. However, the **Curve DAO retains full discretion** over how these tokens are used, and can redirect them as it chooses through a governance vote. ### Recent DAO Votes 1. **September 24, 2025: Initial Credit Line Approval:** The initial proposal to grant YieldBasis a **crvUSD credit line of up to 60M** passed and [executed](https://etherscan.io/tx/0xa77fabf198d697ffbd1dcd1f96fa80763de100c6eef2347ab5d1c89f4566612b). Shortly after execution, the first three markets, **cbBTC**, **WBTC**, and **tBTC**, went live on YieldBasis with a cap of **1M worth of BTC per pool**.Due to immense demand, the UI briefly struggled to handle traffic, and some users even deposited directly via Etherscan. Once the interface recovered, all pools filled within a minute. 2. **October 2, 2025: Market Cap Increase to 10M:** After the successful launch of initial markets, a second vote on the YieldBasis side approved an increase in pool caps to **10M per market**. As before, pools reached full capacity within minutes. 3. **October 7–14, 2025: Credit Line Expansion to 300M:** In response to continued demand, another Curve DAO proposal was created on **October 7** to expand YieldBasis’s credit line to **300M crvUSD**. The vote passed and was executed on **October 14**, allowing market caps to rise again — this time to **100M per pool**. Unsurprisingly, the markets filled almost instantly once more. 4. **October 15, 2025: YB Token Emissions and Airdrop:** At **10:00 UTC**, YieldBasis initiated **YB token emissions**, marking the start of inflationary vesting to the Curve DAO. This also included the setup of a **YB/crvUSD pool** and an **airdrop for veCRV holders** who voted *Yes* on proposals [**#1206**](https://www.curve.finance/dao/ethereum/proposals/1206-ownership), [**#1213**](https://www.curve.finance/dao/ethereum/proposals/1213-ownership), and [**#1222**](https://www.curve.finance/dao/ethereum/proposals/1222-ownership). --- ## YB Impact in Numbers Since launch, YB has had a clear positive effect on Curve. It’s boosted TVL, trading volumes, and DAO revenue. Let’s take a look at the impact so far. ### TVL Every dollar worth of BTC deposited into YieldBasis results in **two dollars of TVL** for Curve, since YieldBasis leverages its liquidity 2x through crvUSD. Because each round of pool caps was filled almost instantly, Curve’s TVL saw three sharp jumps: **6M → 60M → 300M.** ![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/2025/10/curve_tvl_stacked_chart.png) **Additional Curve TVL from the launch of the YieldBasis pools.* ### Revenue Impact With YieldBasis operating for a few weeks now, we can now analyze its effect on Curve’s trading volume and fee generation. Data was obtained on the 21st of October. First, looking at **liquidity pools**: ![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/2025/10/yb_vs_adjacent_comparison.png) **Adjacent Volume = additional volume generated via trades through YB pools.* Interestingly, every **$1 of volume** on the YieldBasis pools generated **$1.32 of adjacent volume** on other Curve pools, mainly **crvUSD/USDC** and **crvUSD/USDT**. For example, when a user sells USDC for BTC, the routing path typically looks like: `USDC → crvUSD → BTC`. This adjacent trading activity generated about $33.6K in total revenue on Curve — split evenly between LPs and the DAO. Another YieldBasis-related revenue source came from **PegKeepers**, which generated roughly **$35K** in profit. PegKeepers help stabilize **crvUSD’s peg** by depositing crvUSD into their pools when the price is above $1 (effectively *selling* crvUSD) and withdrawing when it’s below $1 (effectively *buying* crvUSD). This process creates profit opportunities while supporting the peg. Most trades in YieldBasis pools originate from **arbitrage** as BTC prices move: - When BTC rises, arbitrageurs **buy crvUSD** to then **buy BTC**. - When BTC falls, they **sell BTC for crvUSD**, adding sell pressure. Because of recent volatility and the large size of the YieldBasis pools (**around $300M**), these arbitrage cycles caused **greater crvUSD price movement,** leading to **more PegKeeper activity** and, in turn, **additional revenue for the Curve DAO**. To dampen short-term crvUSD volatility, YieldBasis decided to **incentivize the pyUSD/crvUSD pool** with **200,000 YB tokens (\~$90K)** for one week, ahead of the main emissions (more on that below). Finally, the **YB/crvUSD liquidity pool**, which serves as the main trading venue for the $YB token, currently holds **$1.4M in TVL** and has generated **over $30K in revenue** since launch. In total, YieldBasis has generated approximately **$188K in revenue** (for LPs and the DAO combined). This is a **conservative estimate**, as it doesn’t include secondary effects, such as new crvUSD minted in response to higher demand. ![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/2025/10/curve_revenue_stacked.png) --- ### Whats Ahead? Before Curve can extend additional credit lines to YieldBasis and raise pool caps further, **crvUSD liquidity must deepen significantly**. Current liquidity levels are only just sufficient to support the existing 300M in YieldBasis pools — expanding beyond that without stronger crvUSD markets would risk higher volatility and potential price instability. The next major step is [**Proposal #1238**](https://www.curve.finance/dao/ethereum/proposals/1238-ownership), which redirects the **$YB vesting emissions** to a dedicated `DepositPlatformDivider` contract. This contract will use the vested $YB tokens as **vote incentives** on platforms like [**Votium**](https://votium.app/) and [**VoteMarket**](https://votemarket.stakedao.org/) to attract gauge weights for **crvUSD pools**. In practice, this means those pools will attract more **CRV emissions**, making liquidity provision in crvUSD pairs far more appealing for LPs. [Redirect YB emissions to a distributor contract for gauge vote incentivesSummary: Hello. Tommy from Votium here. In collaboration with Votemarket, we have developed some helper contracts to automate allocating YB for gauge voting incentives. There are three contracts: DepositPlatformDivider - 0x0997f89c451124eadf00f87de77924d77a38419a DepositHelperVotium - 0x5005DE019301aB6b744B6EFbB942E9A8999EEeC7 DepositHelperVoteMarket - 0xfD97b14E1d91B82936e35aE7b20dA4FD16C855B1 starting split is set to 65% Votium, 35% Votemarket, this split follows the efficiency data th…![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/icon/8b124f7d448c2829ce00fa7212028ee695140a1e_2_32x32-4.svg)Curve.finance GovernanceTommyGenesis![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/thumbnail/236e8d42f0282109552eb0849f8987a75ca5b51b-1.png)](https://gov.curve.finance/t/redirect-yb-emissions-to-a-distributor-contract-for-gauge-vote-incentives/10896) The start of YB emissions has already set things in motion — activating the vesting of **75M YB tokens** to the Curve DAO. This creates a continuous stream of incentives that can be strategically redirected toward strengthening crvUSD liquidity. Following this, **Michael Egorov** (founder of Curve and YieldBasis) introduced a broader proposal package to scale YieldBasis responsibly: [Set of proposals for further increasing YB pool capacity and scaling crvUSDSummary Utilize YB available to Curve DAO fully for bribing for crvUSD stablecoin pools (mostly to crvUSD/USDC and crvUSD/USDT, crvUSD/pyUSD, but also can include crvUSD/frxUSD, crvUSD/USDf etc if those collaborate for partner rewards). This stream is dynamic, up to 360k YB per week. Raise PegKeeper limits from current $108M crvUSD in total to $300M crvUSD in total. Give $1B crvUSD allocation for Yield Basis, giving a capacity of $500M to Yield Basis. (1) and (2) are necessary economic prerequ…![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/icon/8b124f7d448c2829ce00fa7212028ee695140a1e_2_32x32-5.svg)Curve.finance Governancemichwill![](https://storage.ghost.io/c/84/bd/84bdf1ce-3211-4e56-85ff-6bf76cbb2657/content/images/thumbnail/a0f736fd79c0f2f41218f2587b0e2615d63c8825_2_1024x625.png)](https://gov.curve.finance/t/set-of-proposals-for-further-increasing-yb-pool-capacity-and-scaling-crvusd/10897) These proposals focus on: - **Increasing crvUSD liquidity** through deeper incentives and emissions alignment. - **Raising PegKeeper limits** to allow larger crvUSD supply flexibility. - Preparing the system for **safe scaling** of YB pool caps once liquidity conditions improve. Relevant votes are already up for voting: - [Proposal #1238:](https://www.curve.finance/dao/ethereum/proposals/1238-ownership) Setting the $YB emission recipient to `DepositPlatformDivider` - [Proposal #1241:](https://www.curve.finance/dao/ethereum/proposals/1241-ownership) Increasing PegKeeper capacities by a factor of 3 In short: YieldBasis has proven its potential, but **sustainable growth now depends on expanding crvUSD liquidity**. The upcoming DAO votes aim to create exactly that foundation, ensuring both protocols can scale together without compromising stability. ---