Let's talk about Yield Basis. First, the conclusion: Product: It's just another DeFi project that is doing fancy renovations in a shell, which is not surprising if it's Michael. Initial investment: A gamble, feeding the Kraken retail investors. The product documentation is quite cryptic and seems to approach a perpetual challenge in DeFi—impermanent loss. The specific approach is to use BTC as collateral, borrow CrvUSD, and pool it in Curve. With LP as collateral, a 1:1 leverage can be achieved. As the price of BTC fluctuates, this asset combination ($1 crvUSD asset + $1 CrvUSD liability + $1 BTC equivalent asset) will continuously rebalance to maintain the asset ratio. To put it more directly, if BTC decreases, buy it back; if BTC increases, sell a bit. Currently, some AMM hedging strategies use this method as well. Generally speaking, AMM hedging tends to lose money, but under the mechanisms of VirtualPool and Rebalancing-AMM, such hedging trades can yield positive returns, thus achieving impermanent loss avoidance based on BTC. So, the claim that Yield Basis solves impermanent loss isn't entirely wrong, but to be precise, it only addresses impermanent loss in specific scenarios, akin to solving a linear equation and finding a general solution rather than a particular one. The source of Yield Basis's positive returns is the arbitrage opportunities in the Curve AMM pool under price fluctuations. This "particular solution" is not limited to pools and tokens; there are more external constraints. As we know, matter is conserved. If Yield Basis generates positive returns, who is losing money? Clearly, it's the arbitrageurs who are losing money, specifically the non-Yield Basis LPs in the AMM pool. To illustrate with a more vivid example, there exists a group of scissors and a group of retail investors; the scissors make money by cutting the retail investors. If there are too many scissors, there won't be enough retail investors to cut, so the premise for Yield Basis to achieve its ideal effect is that Yield Basis cannot occupy too high a proportion of the entire Curve Pool. Next, we will find something interesting: currently, the TVL of Yield Basis is 3 million, with each pool at 1.02 million, and coincidentally, the three BTC corresponding to the CrvUSD pools have a TVL of 2.04 million each. This means Yield Basis occupies 50% of the TVL. So the question arises: if the pool is opened up and the number of remaining LPs remains unchanged, can Yield Basis still grow while maintaining a 9%+ APY?