"Earn money without selling Bitcoin (BTC)"...Yield Basis, funds surge 120% in 2 weeks

▲ Bitcoin (BTC)/AI generated image

As investors seeking to earn profits without selling Bitcoin (BTC) flocked in, Yield Basis deposits surged by over 120% in less than two weeks.

According to the cryptocurrency media outlet Bitcoin.com on June 18 (local time), Yield Basis's hybrid vault deposits increased from 1.7 million crvUSD to 3.8 million crvUSD. The increase exceeded 120%. Deposits grew by approximately 2.1 million crvUSD from May 25 to June 9.

Yield Basis is designed to provide returns while maintaining exposure to the price appreciation of Bitcoin and Ethereum (ETH). Traditional Automated Market Makers (AMMs) might see lower returns than simply holding during a sharp rise in Bitcoin's price. It is explained that if Bitcoin's price doubles, the performance of liquidity providers could lag behind simple holders by approximately 5.7%.

Users deposit Bitcoin and borrow crvUSD of the same value. The funds are then deployed with 2x leverage into Curve's Bitcoin-crvUSD liquidity pool. The debt ratio is maintained at 50% of the total position. The protocol automatically adjusts the position in response to Bitcoin price fluctuations. This structure allows for earning trading fees while maintaining Bitcoin price exposure.

Michael Egorov, founder of Curve Finance and Yield Basis, stated, "Investors are increasingly looking for ways to earn profits or secure liquidity without fully liquidating their positions." He explained that this strategy expands investors' options in various market conditions.

Yield Basis's cumulative trading volume has exceeded $3.3 billion. Protocol fees recorded $3.95 million. Total assets under deposit are approximately $126 million, with over $100 million in the Bitcoin pool. The hybrid vault also includes liquidity from WETH and cbBTC pools.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*