Over 17 BTC Ready for Claim as Yield Basis Activates Fee Switch
Yield Basis — the three-month-old protocol created by Curve Finance founder Michael Egorov — has activated its fee switch, becoming the latest DeFi project to share revenue directly with tokenholders.
Since its launch in September, the protocol has generated more than 17 BTC in fees (worth nearly $1.6 million), which eligible users can claim over the next four weeks. The proposal to activate the fee switch passed unanimously on Wednesday.
Crypto protocols are under growing pressure to provide real value to tokenholders. Many DAOs struggle to reach voting quorums, and investors increasingly expect more than governance rights. This year alone, several major protocols — including Uniswap, Aave, Ethena, and Jito — have turned on fee switches or launched buybacks.
Egorov says US-based projects now feel safer enabling revenue sharing. He argues that tokens without “closed-loop economics” eventually perform poorly, and that distributing fees is essential if protocols want token incentives to work.
Yield Basis is designed to eliminate impermanent loss, a long-standing pain point for liquidity providers. The protocol currently manages over $130 million worth of Bitcoin deposits and uses a leveraged strategy on Curve’s BTC–crvUSD pool to protect LPs.
The YB token can be locked to receive a share of protocol revenue, and Egorov says investors have already earned fees without suffering impermanent loss. Yield Basis plans to expand to other assets next, starting with Ethereum.
While token-value strategies like buybacks remain controversial — with reports showing limited price impact — Egorov maintains that reinvesting in growth through token incentives requires a revenue loop.
“In DeFi, if you don’t have closed-loop economics, the token will inevitably perform very badly,” he said
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