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Yield Basis Review 2026: Liquidity Without Impermanent Loss?

Yield Basis is an Ethereum liquidity protocol that aims to remove impermanent loss for liquidity providers, starting with Bitcoin. It holds about $104 million in TVL, but it is a young product with a complex design.

Ethereum

By the DappsAtlas editorial team · Updated Nov 4, 2026

DappsAtlas score

6.2/10

Mixed

Visit Yield Basis

Our verdict on Yield Basis

6.2/10

Yield Basis suits experienced DeFi users who understand AMM liquidity provision and want Bitcoin-linked yield without the usual impermanent loss. Its main strength is a clear focus on that problem, backed by about $104 million in TVL and two listed audits. The main caveat is that the protocol is young, its mechanism is complex, and fees and yields are not published. Beginners should read the documentation closely and start small.

Score breakdown

How Yield Basis scores

Security: 5.8/10
Ease of use: n/a
Fees: n/a
Features: 6.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Yield Basis?

Yield Basis is an on-chain liquidity protocol that aims to solve impermanent loss in AMM pools. Its description says it turns crypto into productive assets, starting with Bitcoin, and gives LPs direct spot exposure to an asset while they earn organic yield.

DefiLlama lists it under Leveraged Farming on Ethereum, with about $103.9 million in TVL, a native token (YB), two listed audits and a listing date of 25 September 2025. TVL was down 9.4% over seven days at the time of the data.

The homepage describes it as a new standard for liquidity provisioning without impermanent loss. Beyond that, the project does not give specifics on yields, fees or team, so the review rests on the project's own claims and basic public metrics.

How Yield Basis works

In a standard AMM pool, liquidity providers deposit two assets and earn trading fees. When the price of one asset moves, the pool rebalances and the LP ends up with less of the rising asset than if they had simply held it. This shortfall is impermanent loss.

Yield Basis describes itself as an on-chain liquidity protocol that addresses this problem. According to its description, LPs get direct spot exposure to an asset and earn organic yield with a better risk/reward profile than conventional AMMs. DefiLlama classifies it as Leveraged Farming, which suggests leverage is part of the mechanism, though the project does not explain the details.

The homepage tagline, market volatility is your yield, points to yield being drawn from price swings and trading activity. The protocol starts with Bitcoin. Readers should consult the official documentation for the precise design.

6 features

Key features

Impermanent loss focus

The protocol is built to address impermanent loss, the main cost for liquidity providers in conventional AMM pools.

Spot exposure with yield

The stated aim is for LPs to hold direct spot exposure to an asset while earning organic yield.

Bitcoin-first design

The protocol starts with Bitcoin as its first productive asset, according to its description.

Volatility as yield source

Its yield is described as organic, meaning it comes from market activity and volatility rather than emissions alone. The homepage tagline says market volatility is the yield.

YB token

DefiLlama lists a native token, YB, tied to the protocol.

Listed audits

DefiLlama shows two audits for the protocol.

Pros and cons

What we like

Targets impermanent loss, a well-known weakness of AMM liquidity provision
Substantial TVL of roughly $104 million for a protocol listed since September 2025
Two audits are listed on DefiLlama
Gives LPs spot exposure to an asset such as Bitcoin while earning yield
Native YB token and clear public positioning

Watch out for

Leveraged liquidity design adds complexity and risks that plain AMM LPs do not face
TVL fell 9.4% over seven days in the data, so capital is not static
Launched in September 2025, so the track record is short
Only two audits are listed and the audit details are not public
Fee structure, yield figures and risk parameters are not published
Runs on Ethereum only, so mainnet gas costs apply

Yield Basis fees

Fees are not published publicly available for this review. Public sources give no information on trading fees, performance fees or protocol cuts of yield.

Users should check the official site and documentation, and the app interface before depositing, to see current fees, yields and any withdrawal conditions. Ethereum gas costs will also apply to transactions.

Is Yield Basis safe?

DefiLlama lists two audits, but the auditors, scope and findings are not public. Smart-contract risk remains for any protocol with leverage-like mechanics, and the project has been live only since September 2025. No hacks or incidents appear, but that does not guarantee none have occurred.

Deposits sit in smart contracts rather than with a custodian, so users keep wallet control but carry contract and market risk. Regulatory status is not stated. This is not financial advice. Only deposit what you can afford to lose.

6 steps

How to get started with Yield Basis

1
Read the official documentation to understand how the leveraged liquidity design works and what risks it carries.
2
Check the audit reports and the protocol's TVL and history on DefiLlama.
3
Set up an Ethereum wallet and fund it with the asset you plan to deposit and ETH for gas.
4
Open the official app from the project's verified website and review the fees and yields shown.
5
Start with a small deposit to learn how positions and withdrawals behave.
6
Monitor your position, since leverage-based mechanics can change in value as markets move.

Open Yield Basis

Who Yield Basis is for

Yield Basis is for experienced DeFi users who already know how AMM liquidity pools work and are comfortable with smart-contract and leverage-related risk. It may interest Bitcoin holders who want yield on their position without giving up spot exposure. Newcomers should learn the basics first.

Yield Basis FAQs

What is Yield Basis?

Yield Basis is an on-chain liquidity protocol that tries to solve impermanent loss in AMM pools. It is designed to give liquidity providers direct spot exposure to an asset while they earn yield, starting with Bitcoin.

Does Yield Basis really remove impermanent loss?

The project says its design is meant to provide liquidity without impermanent loss. Exact mechanics, limits and the conditions under which this holds are not public, so users should read the official documentation and treat the claim with care.

What is the YB token?

DefiLlama lists YB as the protocol's token. Its utility, supply and distribution are not described publicly available here.

Which blockchain does Yield Basis run on?

DefiLlama lists Ethereum as the only chain. No other networks are mentioned publicly.

Is Yield Basis safe?

DefiLlama lists two audits, but the auditors and findings are not public. Audits reduce but do not remove smart-contract risk, and the protocol only went live in September 2025.

How much value is in Yield Basis?

DefiLlama files Yield Basis under Leveraged Farming and reports about $103.9 million TVL, down 9.4% over seven days at the time of the data. Check live dashboards for current figures.

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