@dmredacted
Did Curve Just Solve The Main Problem Of DeFi?
Impermanent Loss is the big reason why smart money is scared to enter DeFi pools. Basically, if you deposit Bitcoin and price flies up, the pool automatically sells your coins to rebalance. You earn small fees, but you miss the real pump.
Curve founder Michael Egorov claims he fixed this. It is called "Yield Basis". The mechanic allows you to deposit only Bitcoin, while protocol automatically borrows stablecoins to create the pair.
The interesting part is how it rebalances. When Bitcoin goes up, system uses leverage to buy more BTC for your position. This means your portfolio behaves exactly same as holding Spot Bitcoin. You keep 100% of profit from the rally, and you still earn the yields.
There is already $145 million locked in the system. If this proves to be safe, it opens the door for billions of dollars that are currently sitting on sidelines.
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