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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 BTC/crvUSD LP pool, where the LP token balance represents the ownership percentage and corresponding share of the pool's trading fees. Liquidity can be withdrawn at any time, just like in regular pools, with no minimum deposit requirements.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 eliminating impermanent loss. This 1:1 tracking is achieved through 2× compounding leverage mechanics. The dynamic fee distribution mechanism 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 WBTC will give users ybWBTC, cbBTC will give users ybcbBTC, and so on.

Earning with ybBTC​

ybBTC offers two earning strategies with built-in economic balance:

Hold for Real Yield

  • Earn trading fees directly from the underlying BTC/crvUSD pool
  • APR increases as more tokens are staked (higher fee share)
  • Provides steady yield from real trading activity

Stake for $YB Emissions (st-ybBTC)

  • Earn $YB governance tokens instead of trading fees
  • APR decreases as more tokens are staked (dilution effect)
  • Trades immediate yield for potential governance gains

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.