Curve founder’s new project Yield Basis raises $5 million at a $50 million token valuation

Impermanent Loss, PANews reported on February 19 that according to The Block, Curve Finance founder Michael Egorov is launching a new project called Yield Basis and has already raised funds for it. According to a presentation dated January 11, 2025, Yield Basis aims to help tokenized Bitcoin and Ethereum holders earn yield through market making while mitigating Impermanent Loss. The presentation states that Yield Basis is raising $5 million in a token round at a fully diluted valuation of $50 million. The project will sell 10% of its "YB" token supply, or 100 million out of a total 1 billion tokens, to investors. Investors' token vesting schedule includes a six-month lockup period followed by a two-year linear unlock. Sources familiar with the matter said the fundraising process started last month and the funds were raised within two weeks; investor interest was "huge" and the round was "oversubscribed 15 times". When contacted for comment, Egorov confirmed he is working on the Yield Basis project and has raised funds at the valuation mentioned. The YB tokens will be allocated to different categories. According to the presentation, 30% of the total supply will be allocated to community incentives and distributed through liquidity mining. Other allocations include 25% to the team, 15% to a development reserve, 10% to Curve technology licensing, and 10% to partnerships. Egorov said the Curve technology licensing is "likely to be used for voting on the crvUSD stable pool, which seems most aligned with the Curve ecosystem and also beneficial for YB." Egorov also revealed that Yield Basis is currently in a "production testing" phase, undergoing testing and audits before fully launching the liquidity pools, but the entire system including the tokens will take longer to roll out.