Michael Egorov: Yield Basis - Bringing Real Yield to Bitcoin

Join José Macedo and Yan Liberman as they host Michael Egorov, co-founder of Curve Finance and one of DeFi’s original pioneers. Michael introduces Yield Basis — his ambitious new protocol that aims to solve one of DeFi’s biggest problems: impermanent loss. Learn how this innovation could finally unlock natural, sustainable yield on Bitcoin at scale, creating the long-sought “holy grail” of yield-bearing Bitcoin without the downsides of traditional AMM strategies.

Curve Finance: www.curve.finance
Yield Basis: https://yieldbasis.com

🎯 Key Highlights

▸ What is Yield Basis: Eliminating impermanent loss on crypto LPing for single-sided exposure
▸ The impermanent loss problem: Why traditional AMMs underperform buy-and-hold strategies
▸ Michael’s solution: Using 2x compound leverage to counteract square-root price mechanics
▸ Why Curve crypto pools work better than Uniswap v2 for this strategy
▸ Historical simulations showing 10-20% APR potential on Bitcoin during active markets
▸ The borrowing mechanism: How the protocol sources capital using crvUSD allocation
▸ Novel tokenomics: LPs choose between real yield or YB token rewards (but not both)
▸ Dynamic admin fees that adjust based on staking participation rates
▸ Go-to-market strategy: Targeting Bitcoin miners, funds, and treasury companies
▸ Multi-chain deployment: Separate token instances vs. cross-chain complexity
▸ Market size estimates: ~$50-100B addressable market before yield saturation
▸ Beyond Bitcoin: Plans for Ethereum and other volatile assets
▸ Michael’s take on modern DeFi vs. OG principles and regulatory considerations
▸ The technical challenges of matching simulations to real-world performance
▸ Why this could be bigger than points farming and traditional yield strategies

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🧠 Follow the Alpha

▸ Michael’s Twitter: @newmichwill
▸ Curve Finance Twitter: @CurveFinance
▸ Yield Basis Twitter: @yieldbasis

🔗 Connect with Delphi

🌐 Portal: https://delphidigital.io/
🐦 Twitter: https://x.com/delphi_digital
💼 LinkedIn: https://www.linkedin.com/company/delphi-digital/

🎧 Listen on

Spotify: https://open.spotify.com/show/62PR1RigLG2YN5Pelq6UY9?si=18ac7ccf36ab4753&nd=1&dlsi=50105fd66e6c4124
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-delphi-podcast/id1438148082
Youtube: https://www.youtube.com/channel/UC9Yy99ZlQIX9-PdG_xHj43Q

Timestamps

00:00 – Introduction to Yield Basis and Michael Egorov
01:15 – What is Yield Basis: Single-sided LP without impermanent loss
02:00 – The impermanent loss problem explained with Bitcoin/USDT example
07:30 – How traditional AMMs create “buying low, selling high” mechanics
09:00 – Michael’s solution: Using compound leverage to eliminate square-root pricing
13:00 – Why Curve crypto pools outperform Uniswap v2 for this strategy
15:30 – Historical simulation methodology and 10-20% APR results
19:00 – The borrowing mechanism: Arbitrage traders and debt management
24:30 – Net returns after borrowing costs and management losses
25:15 – Using crvUSD allocation as low-cost capital source
27:15 – Why separate protocol vs. building into Curve directly
28:00 – Novel tokenomics: Choose real yield OR tokens (not both)
32:45 – Points meta vs. transparent token distribution approach
36:00 – Dynamic admin fees that prevent zero-division scenarios
40:00 – Go-to-market: Bitcoin miners, funds, and institutional adoption
43:00 – Multi-chain strategy: Separate instances vs. bridge complexity
48:30 – BD opportunities with competing chains and native ecosystems
50:30 – Curve vs. Yield Basis governance responsibilities
52:00 – Modern DeFi vs. OG principles: Centralization trade-offs
55:30 – Building treasury relationships vs. decentralized ethos
56:30 – Biggest challenges: Real-world performance and parameter management
58:30 – Addressable market: $50-100B before yield saturation from reduced volatility
1:02:00 – crvUSD scaling and supply sink mechanics for large TVL
1:06:15 – Market cap ceiling calculations based on exchange liquidity
1:08:00 – Beyond Bitcoin: Gold and other volatile assets
1:08:45 – Coolest DeFi innovations: Pendle adoption and Athena’s growth
1:11:30 – Hyperliquid’s community bootstrap strategy
1:12:00 – Closing thoughts and growth parallels to successful protocols

Disclaimer

This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host and members at Delphi Ventures may personally own tokens or art that are mentioned on the podcast. Our current show features paid sponsorships which may be featured at the start, middle, and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product, service or token.