# Why Ketju rejected Yield Basis

- URL: https://riadefi.com/rejections/yield-basis/
- Exposure: other
- Memo version: v1
- Reviewed: 2026-08-19
- Next review: 2026-09-19

## The memo

REJECTED ON UNDISCLOSED CONTROL AND A DIRECTLY RELEVANT FOUNDER TRACK RECORD. Yield Basis, founded by Curve Finance founder Michael Egorov, auto-leverages Curve LP positions funded partly by borrowed crvUSD to give BTC liquidity providers impermanent-loss-free spot exposure — a real technical mechanism confirmed through the project's own GitHub repositories and DefiLlama's TVL methodology. But no legal entity name or jurisdiction was found anywhere, no admin key, multisig, or pause-authority structure was disclosed, no audit of Yield Basis's own contracts was located, and the exact leverage ratio and liquidation parameters governing the core mechanism could not be independently confirmed — the project's own site and docs were unreachable throughout this review. Separately, Egorov has a demonstrated, twice-realized pattern of running large personal leveraged CRV positions that created market stress: a near-liquidation in August 2023 that he unwound via OTC sales, and an actual liquidation in June 2024. A new protocol he founded that is itself explicitly leverage-based compounds rather than mitigates that founder-risk profile.

## What would reopen the file

- A named legal entity, incorporation jurisdiction, and control or admin-key structure are publicly disclosed
- An independent, primary-source security audit of Yield Basis's own contracts is published
- The exact leverage ratio, rebalancing trigger, and liquidation parameters are confirmed from primary documentation
- Twelve consecutive months with no founder-level leveraged-position stress event that could plausibly affect Yield Basis's own Curve DAO dependency

---

Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
Machine-readable index: https://riadefi.com/llms.txt · Content API: https://riadefi.com/content.json