Michael Egorov says demand is growing $BTC Yield strategy to maintain exposure
cryptography Investors have long faced unpleasant choices. decentralized finance: Earn yield or maintain clean exposure to assets you already own.
The trade-off is particularly clear Bitcoin liquidity Regulations. in the traditional automatic market maker strategy, rapid increase $BTC can leave liquidity The provider is worse off than the investor who simply held the asset.
According to Yield Basis, 2x movement Bitcoin LP can be about 5.7% worse than passive ownership, and the difference is on-chain liquidity The strategy is difficult to justify for long-term holders.
Recent activity suggests users are looking for a middle ground. Deposits to Yield Basis’ newly launched strategy grew from 1.7 million crvUSD to 3.8 million crvUSD in less than two weeks, an increase of over 120%.
Hybrid Vault aims to combine exposure and revenue
The yield standard is $BTC Achieve ETH-denominated yield while reducing temporary losses that may occur on an AMM basis. liquidity Regulations.
The model of the protocol allows users to make deposits $BTC Then borrow the same amount of crvUSD. This will double your leverage $BTC/crvUSD liquidity position on the curve. Built-in AMM The virtual pool automatically rebalances its position.
By keeping debt at 50% of the position, the LP value can vary 1:1 depending on the 50% of the position, Yieldbase says. Bitcoin This allows users to maintain exposure while earning trading fees. Rebalancing is handled by the protocol and the cost is covered by the interest on borrowed crvUSD.
In May 2026, Yield Basis introduced Hybrid Vaults. cryptocurrency Assets with crvUSD positions with yield. This design allows users to earn both cryptocurrency-based and stablecoin-based yields within one strategy.
Michael Egorov, founder of Curve Finance and Yield Basis, said the trend shows growing demand for infrastructure. cryptocurrency Increase asset productivity.
“Investors are increasingly looking for ways to generate yield and access. liquidity Egorov added that this gives users more flexibility in responding to different market conditions.
Building a protocol activity
Initial traction comes as yield basis reports broad-based growth. The total cumulative value of this protocol exceeds $3.3 billion trading volume and generated $3.95 million in protocol fees.
The total amount locked is approximately $126 million, of which more than $100 million is locked. $BTC pool. The latest Hybrid Vault activity includes liquidity from WETH and cbBTC pools. From May 25th to June 9th, deposits increased by approximately 2.1 million crvUSD.
The appeal for DeFi is clear. If protocols can offer yield without forcing investors to sacrifice upside exposure, providing liquidity could become more attractive to long-term holders of Bitcoin and Ether. The challenge is to prove that the model holds up not only in backtesting but also in the real market.
