Seeing many people say that @yieldbasis is BTCfi is completely wrong. This is a pure ETH/EVM ecosystem project, heavily reliant on Curve, with smart contracts written in Vyper, and has no relation to the BTC ecosystem. It uses WBTC/cbBTC and other BTC mapped on EVM chains. In fact, it can support any ERC20 token in the future. BTC (WBTC/cbBTC) is just the first batch of supported tokens because maintaining a coin-based position avoids impermanent loss while earning market-making profits, which is the most important innovation of YieldBasis.
The new project of the Curve founder, @yieldbasis, innovates by maintaining a constant token exposure with 2x leverage, claiming to avoid impermanent loss in DeFi AMMs. Users invest BTC, and the protocol automatically borrows an equivalent amount of crvUSD through Curve, forming a 2x leveraged LP that is then deposited back into Curve for market making, thus earning transaction fees. The protocol maintains the 2x leverage through automatic balancing by arbitrageurs. Currently, the contract is in the final audit phase, but the official documentation is missing the most important risk warning section. We all know that there are no free lunches, so where does the project's yield come from? Under what circumstances will users lose money? Answering this question used to take quite a bit of time, but now with Claude Code, it's much easier. Download the contract code, let Claude Code read the source code directly, and combine it with the official documentation. After several rounds of proofreading, Claude Code produced a complete Yield Basis risk-return assessment report, for reference only.
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