Yield Basis protocol by Curve Finance tackles impermanent loss for BTC and ETH liquidity providers while addressing token inflation. Founder Dr. Michael Egorov explains impermanent loss results from square root dependency, which Yield Basis neutralizes through compounding leverage. Users can choose yield in tokenized Bitcoin or YB token, offering control over inflation rates and emissions.

Yield Basis provides a solution for impermanent loss plaguing liquidity providers, attracting more LPs. The protocol offers bifurcated yield options in Bitcoin or YB token, allowing users to adapt to different market conditions. During bull markets, users may opt to stake YB token for appreciation, while in bear markets, they may choose to receive yield in Bitcoin for stability.

Read more at Cointelegraph: How Curve Finance is Solving Impermanent Loss