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ybBTC

When users deposit BTC into YieldBasis, they receive ybBTC (ERC-20 standard) LP tokens that represent their ownership stake in the underlying liquidity pool. Each ybBTC token represents a proportional share in the particular BTC/crvUSD pool. Liquidity can be withdrawn at any time, just like in regular pools, with no minimum deposit requirements.

These LP tokens track BTC price movements 1:1 while earning trading fees and and having no impermanent loss exposure (IL is eliminated by design). This 1:1 tracking is achieved through 2× compounding leverage mechanics. The fee distribution mechanism is dynamic and ensures ybBTC holders earn a portion of all trading fees generated by the underlying pool.

Multi-BTC-Wrapper Support: YieldBasis will support depositing different wrapped versions of BTC across various chains. For example, depositing cbBTC will give users yb-cbBTC, WBTC will give users yb-WBTC, and so on.

Earning with ybBTC​

After depositing BTC and receiving yBTC tokens, users have two earning strategies available that maintain a built-in economic balance:

Hold ybBTC, earn organic yield

  • Hold your ybBTC tokens to earn trading fees directly from the underlying BTC/crvUSD pools
  • APR increases as more ybBTC tokens are staked for $YB emissions (stakers forfeit their trading fees, which are partly redistributed to unstaked holders)
  • Provides yield from real trading activity

Stake ybBTC, receive $YB emissions

  • Stake your ybBTC tokens to earn $YB governance tokens instead of trading fees
  • Absolute amount of YB per ybBTC staked descreases
  • Give away immediate yield for future YB -> veYB yields

The protocol creates natural incentives: when staking rates are high, unstaked holders earn more fees while stakers receive fewer emissions. This dynamic equilibrium encourages both strategies to coexist.

Fee Distribution: For a detailed visual explanation of how fees are distributed between unstaked ybBTC holders and veYB holders, see the Fees page.