Summary
Ketju does not approve Yield Basis: it discloses no legal entity, admin keys or audit of its own contracts, and its founder has twice run large leveraged positions into market stress. Michael Egorov, who founded Curve Finance, founded Yield Basis. It adds leverage to Curve LP positions, funded partly by borrowed crvUSD, to give BTC liquidity providers spot exposure without impermanent loss. The project’s GitHub repositories and DefiLlama’s method for counting deposits confirm the mechanism. We found no legal entity or jurisdiction, and no disclosure of admin keys, multisigs or pause powers. We found no audit of Yield Basis’s own contracts, and could not confirm the leverage ratio or liquidation settings. The project’s site and docs were unreachable throughout our research. Egorov nearly lost a leveraged CRV position in August 2023 and sold tokens over the counter to save it. In June 2024 a position of his was liquidated. A new protocol built on leverage adds to that founder risk.
Review triggers
- Yield Basis publishes a named legal entity, its incorporation jurisdiction and its admin-key structure
- An independent security audit of Yield Basis’s own contracts is published
- Yield Basis publishes its leverage ratio, rebalancing trigger and liquidation settings in primary documents
- Twelve consecutive months pass with no stress event from the founder’s leveraged positions that could affect Yield Basis’s reliance on Curve DAO
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Ethereum
- Instruments
- YB
- Reviewed
- Last confirmed