Crypto markets often move fast, but few tokens have turned around as sharply as Yield Basis (YB) this week. After sliding for most of October, YB price jumped more than 20% in just two days. What could have sparked the sudden momentum.
Yield Basis emerged in 2025 from the Curve Finance ecosystem, founded by Michael Egorov, who is also the creator of Curve. The protocol introduces a leveraged automated market maker designed to manage Bitcoin liquidity without the usual impermanent loss risk that liquidity providers face. This alone set it apart from many DeFi projects that depend on volatile pairings and unstable yield models.
The YB token launched in mid-October at $0.50 and immediately saw wild swings. It surged as high as $1.40 before sliding nearly 40% to around $0.44 by October 20. Despite that steep correction, the token is now showing renewed strength. According to BTCL2Sync, YB price movement this week reflects stabilizing market sentiment and anticipation around the next stage of the protocol’s development.
Analysts Point to Governance and Revenue Activation as Key Drivers
The recent price rebound appears to be tied to upcoming governance milestones and protocol updates. Analyst Kornik highlighted that Yield Basis has confirmed plans to activate admin fees within about a month, allowing veYB holders to start earning substantial rewards in Bitcoin. Based on internal estimates shared in the project’s Telegram group, veYB holders could see returns in the 600% to 800% APR range once the new structure goes live.
🚨 YieldBasis ($YB) Weekly Recap
— BTCL2Sync (@BTCL2_Sync) October 20, 2025
1: Overview: #YieldBasis (YB), a DeFi protocol on Ethereum and BNB Chain founded by Michael Egorov (Curve Finance), aims to eliminate impermanent loss for BTC/ETH liquidity providers. It uses 2x leverage with crvUSD to generate sustainable… pic.twitter.com/rmkV1gpram
These updates come at a time when the protocol’s total value locked (TVL) has already surpassed $300M within just four days of launch. Yield Basis operates on both Ethereum and BNB Chain, and its leverage-based liquidity pools use crvUSD to generate sustainable yield. This approach connects directly to Curve’s liquidity infrastructure, effectively allowing Yield Basis to extend the reach of Bitcoin-related DeFi activity while keeping risk more manageable.
BTCL2Sync also noted that Yield Basis tokenomics seem to be balancing out after the early volatility. With 30% of tokens allocated to liquidity incentives and 25% to the team (locked for six months), much of the circulating supply remains limited, which could help stabilize the market as governance participation increases.
Market Reassessment After a Period of Uncertainty
Part of the YB price recovery may also come from renewed confidence among early investors. After the token’s steep decline post-launch, traders were waiting for clear direction from the team. Once Egorov and the Yield Basis developers confirmed that fee distribution and pool updates were on track, confidence began to return.
The outlined roadmap for the coming month includes multiple governance votes, liquidity migration, and the start of YB bribes for crvUSD pools to attract more liquidity. Each stage is designed to strengthen the protocol’s core pools and ensure that staking rewards reflect real trading activity.
The broader sentiment in the DeFi space also plays a role. Bitcoin-related DeFi platforms are gaining attention again as institutions explore yield opportunities backed by BTC collateral. Yield Basis fits neatly into that narrative, providing an alternative way to earn Bitcoin-based yield without excessive exposure to volatility.
Yield Basis Could Be Entering Its Next Growth Phase
While it is too early to predict whether the current rally will last, Yield Basis appears to be shifting from its launch volatility toward a more stable phase of protocol growth. If the fee activation and governance expansion go as planned, YB could find a stronger footing among DeFi participants who value sustainable yield models.
Analyst Kornik described the recent developments as a “potential turning point,” arguing that the market might be undervaluing Yield Basis based on its projected fee revenue. Whether or not that proves true, the renewed optimism surrounding YB price suggests investors are beginning to look past the early corrections and focus on the fundamentals driving the project forward.
For now, Yield Basis is a reminder of how quickly sentiment can shift in crypto. Just a week ago, the token looked like another overhyped launch. Today, it is being reconsidered as a potentially innovative bridge between Curve’s stablecoin ecosystem and Bitcoin liquidity management.