yieldbasis (@yieldbasis): YieldBasis: The Next Chapter of Scaling

YieldBasis: The Next Chapter of Scaling Following the successful $YB emission and activation of on-chain governance, YieldBasis moves into its next structured scaling phase. The protocol has proven its stability and efficiency under real market volatility, confirming readiness to expand its TVL capacity toward the $500M target. This stage focuses on: upgrading pool mechanics strengthening the core infrastructure (crvUSD peg & liquidity) expanding the crvUSD credit line enabling the veYB fee switch and completing the governance-driven utility cycle The following update outlines the key technical roadmap and governance proposals that will guide this expansion YieldBasis pools update The current implementation of the leveraged token (LT) in YB has an aspect that needs to be upgraded prior to raising the cap. Consequently, yield distribution between staked and unstaked ybBTC will improve in cases of significant volatility. Status: Code development, security audits, and testing (done) The pool update governance proposal to be approved by YieldBasis DAO (pending) Details The current Releverage AMM implementation uses the LP Price Oracle in all of its price getters, which pulls the price_scale value from the Cryptopool. The LP uses the Cryptopool’s price_oracle value to compute its previews, deposits, etc. However, the price_scale is only updated at rebalance events, and price_oracle (which is an exponential moving average of prices over the last trades) can be updated as frequently as each block. As a result, Releverage AMM and ybBTC tokens operate at different timescales for price changes, which creates excessive volatility in the distribution of value between staked and unstaked ybBTC holders. For example, in case of high volatility unstaked ybBTC and admin_fee can earn a lot while staked ybBTC have a loss that needs to be covered by accumulating fees for a long time. In addition, Curve cryptopools can accumulate a reserve of trading profits that may later be used for rebalancing operations. In certain cases, it is important to account for this reserve, while in others, to exclude it to prevent distortion in value calculations. The current update improves how the protocol handles this component of the Curve cryptopool, ensuring more consistent rebalancing behavior and fairer value distribution. This update fixes that and provides stable value distribution between ybBTC/st-ybBTC in cases of extreme volatility. The code is publicly available for both versions: (1) the legacy LT code in question (2) the updated version. Governance: the proposal for deploying the new pools implementation and migration contract will be launched in YieldBasis DAO. LPs migration: there will be a dedicated migration contract deployed in order to facilitate seamless LP migration from the legacy ybBTC token, which will remain live & functional. YB bribes for crvUSD Note: the proposal, specifying the address receiving YB for bribing is live in Curve DAO. YB bribes are aimed to increase the liquidity depth in the set of crvUSD/stable pools. Increased liquidity allows to efficiently facilitate crvUSD<->stable trades induced by wrapped BTC swaps in YieldBasis, specifically handling bigger crvUSD amounts bought or sold as the final step of the BTC swap. The list of pools proposed for receiving bribes: crvUSD/USDC, crvUSD/USDT, crvUSD/pyUSD, also can include crvUSD/frxUSD, and crvUSD/USDf. Note, that YB is distributed according to the Curve DAO decisions. PegKeepers limit expansion Note: the proposal to increase PegKeeper capacity by factor of 3 (reaching 324M crvUSD in total) is live in Curve DAO. The crvUSD peg is stabilized by special contracts called PegKeepers. They are called to automatically deposit/withdraw crvUSD from a preallocated buffer into their associated crvUSD/stablecoin pool in order to stabilise the price of crvUSD. Increasing PegKeepers capacity is a necessary step for stabilizing the crvUSD peg following YieldBasis TVL expansion. Proposal for expanding crvUSD credit line up to $1B The proposal for crvUSD credit line expansion up to $1B will be launched after executing the preliminary steps: YieldBasis pools update LPs migration from legacy ybBTC pools to new ones YB Bribes and PegKeepers buffer expansion proposals execution The crvUSD credit line expansion up to $1B will allow to expand YieldBasis TVL Cap up to $500m. The veYB fee switch The enabling veYB fee switch is the next step after achieving the $500m TVL milestone for YieldBasis. Details: The fee switch activation requires the approval by YieldBasis DAO governance The amount of admin fee waiting for distribution is approximately $2m (collected during the 80%+ ybBTC stake rate in all pools, following $YB emission launch) After activation, admin fee will be streamed to veYB owners Conclusion According to the outlined roadmap, YieldBasis continues scaling in a structured manner, focusing on: enhancing the underlying infrastructure as the first priority (crvUSD liquidity depth and peg stability mechanisms); improving operational efficiency through pool upgrades and parameter optimization; progressively enabling YB token utility (veYB fee activation) once all scaling prerequisites are complete. Following the activation of the veYB fee switch, the YB token will have its full governance and participation functions enabled, including on-chain decision-making within the YieldBasis DAO, emission allocation voting, and fee-distribution participation. This establishes a complete governance-based utility cycle, where DAO governance decisions direct emissions, emissions incentivize protocol growth, and protocol performance generates fees that flow back through the governance system, creating a transparent and sustainable on-chain feedback loop. This publication is provided for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation to buy any tokens or financial instruments. All protocol updates are subject to on-chain governance approval by the YieldBasis DAO. YieldBasis ($YB) is a utility token designed for governance and participation within the protocol. Availability of features and integrations may vary by jurisdiction.