Brian Fabian Crain and Michael Egorov, Curve Finance founder, discuss Curve's origins: solving inefficient DAI/USDC swaps after MakerDAO borrows by creating a DeFi AMM for stablecoins and LSTs. It hit 1M TVL with a bonding curve concentrating liquidity at 1:1, more effective for pegged assets than Uniswap. Features grew to include BTC wrappers, stETH pairs, and crvUSD (a CDP stablecoin with reversible liquidations & a peg-keeper). Governance uses veCRV: Locking CRV grants voting power proportional to lock duration, a mechanism now refined in Yield Basis. Yield Basis solves impermanent loss in volatile pools (e.g., BTC/crvUSD). Users deposit BTC; the protocol borrows crvUSD, pairs it at 2x leverage (50% debt/equity), and uses LP tokens as collateral. This gives 1:1 asset tracking, while fees accrue from auto-rebalancing arbitrage. Simulations show 20%+ APY (may decline as BTC volatility drops) under a $50B TVL cap. It complements Curve by directing veCRV incentives to crvUSD pools, enhancing liquidity, fees, and DAO revenues. Key considerations: manual migrations, deterring forks, and dev support to scale. Topics Discussed<ul> <li>00:00 Introduction to Curve Finance and YieldBases</li> <li>02:24 Understanding Curve's Unique Mechanisms</li> <li>07:58 The Concept of veTokenomics</li> <li>15:27 Lessons Learned from Building Curve</li> <li>22:20 Exploring YieldBasis and Its Innovations</li> <li>29:47 Understanding Yield Basis and Collateralization</li> <li>32:25 Navigating Market Volatility and Liquidation Events</li> <li>35:32 Metrics and Performance Insights of Yield Basis</li> <li>38:35 Scaling Yield Basis: Future Directions</li> <li>40:33 Yield Expectations and Market Dynamics</li> <li>43:12 Potential Growth and Liquidity Challenges</li> <li>46:18 Expanding to Other Chains and Governance Tokens</li> <li>49:35 The Symbiotic Relationship with Curve</li> <li>54:31 Upcoming Milestones and Future Developments</li></ul> Links Mentioned<ul> <li><a href="https://x.com/newmichwill" rel="ugc noopener noreferrer" target="_blank">Michael Egorov on X</a></li> <li><a href="https://curve.fi/" rel="ugc noopener noreferrer" target="_blank">Curve Finance</a></li> <li><a href="https://yieldbasis.com/" rel="ugc noopener noreferrer" target="_blank">Yield Basis</a></li> <li><a href="https://gnosis.io/" rel="ugc noopener noreferrer" target="_blank">Gnosis</a></li> <li><a href="https://epicenter.tv/" rel="ugc noopener noreferrer" target="_blank">Epicenter - All Episodes</a></li></ul> SponsorsGnosis: Building decentralized infrastructure since 2015. With Gnosis Pay, the first Decentralized Payment Network. Start leveraging its power at <a href="https://gnosis.io/" rel="ugc noopener noreferrer" target="_blank">gnosis.io</a> This episode is hosted by Brian Fabian Crain.

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