<p>Brian Fabian Crain and <strong>Michael Egorov</strong>, <strong>Curve Finance</strong> founder, discuss Curve's origins: solving inefficient DAI/USDC swaps after <strong>MakerDAO</strong> borrows by creating a DeFi AMM for stablecoins and LSTs.</p><p> </p><p>It hit 1M TVL with a bonding curve concentrating liquidity at 1:1, more effective for pegged assets than Uniswap. Features grew to include BTC wrappers, stETH pairs, and crvUSD (a CDP stablecoin with reversible liquidations &amp; a peg-keeper).</p><p> </p><p>Governance uses veCRV: Locking CRV grants voting power proportional to lock duration, a mechanism now refined in <strong>Yield Basis</strong>.</p><p> </p><p><strong>Yield Basis</strong> solves impermanent loss in volatile pools (e.g., BTC/crvUSD). Users deposit BTC; the protocol borrows crvUSD, pairs it at 2x leverage (50% debt/equity), and uses LP tokens as collateral. This gives 1:1 asset tracking, while fees accrue from auto-rebalancing arbitrage.</p><p> </p><p>Simulations show 20%+ APY (may decline as BTC volatility drops) under a $50B TVL cap. It complements <strong>Curve</strong> by directing veCRV incentives to crvUSD pools, enhancing liquidity, fees, and DAO revenues. Key considerations: manual migrations, deterring forks, and dev support to scale.</p><p> </p><p><strong>Topics Discussed</strong></p><ul> <li><strong>00:00</strong> Introduction to Curve Finance and YieldBases</li> <li><strong>02:24</strong> Understanding Curve's Unique Mechanisms</li> <li><strong>07:58</strong> The Concept of veTokenomics</li> <li><strong>15:27</strong> Lessons Learned from Building Curve</li> <li><strong>22:20</strong> Exploring YieldBasis and Its Innovations</li> <li><strong>29:47</strong> Understanding Yield Basis and Collateralization</li> <li><strong>32:25</strong> Navigating Market Volatility and Liquidation Events</li> <li><strong>35:32</strong> Metrics and Performance Insights of Yield Basis</li> <li><strong>38:35</strong> Scaling Yield Basis: Future Directions</li> <li><strong>40:33</strong> Yield Expectations and Market Dynamics</li> <li><strong>43:12</strong> Potential Growth and Liquidity Challenges</li> <li><strong>46:18</strong> Expanding to Other Chains and Governance Tokens</li> <li><strong>49:35</strong> The Symbiotic Relationship with Curve</li> <li><strong>54:31</strong> Upcoming Milestones and Future Developments</li></ul><p> </p><p><strong>Links Mentioned</strong></p><ul> <li><a href="https://x.com/newmichwill" rel="ugc noopener noreferrer" target="_blank">Michael Egorov on X</a></li> <li><a href="https://curve.fi/" rel="ugc noopener noreferrer" target="_blank">Curve Finance</a></li> <li><a href="https://yieldbasis.com/" rel="ugc noopener noreferrer" target="_blank">Yield Basis</a></li> <li><a href="https://gnosis.io/" rel="ugc noopener noreferrer" target="_blank">Gnosis</a></li> <li><a href="https://epicenter.tv/" rel="ugc noopener noreferrer" target="_blank">Epicenter - All Episodes</a></li></ul><p> </p><p><strong>Sponsors</strong></p><p><strong>Gnosis:</strong> Building decentralized infrastructure since 2015. With Gnosis Pay, the first Decentralized Payment Network. Start leveraging its power at <a href="https://gnosis.io/" rel="ugc noopener noreferrer" target="_blank">gnosis.io</a></p><p> </p><p><em>This episode is hosted by <strong>Brian Fabian Crain</strong>.</em></p>