Research summary
This review is adverse because Yield Basis does not disclose its controls, and its founder has a directly relevant 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. The project’s own GitHub repositories and DefiLlama’s TVL method confirm this real technical mechanism. 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 twice run large personal leveraged CRV positions that caused market stress: a near-liquidation in August 2023 that he unwound through OTC sales, and an actual liquidation in June 2024. His founding of a new protocol that is explicitly leverage-based adds to this founder-risk profile instead of reducing it.
Observable review triggers
- 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
Facts on file
- Verdict
- Rejected
- Type
- Other
- Chains examined
- Ethereum
- Instruments
- YB
- Reviewed
- Last confirmed