Yield Basis has deployed an invariant-loss-free AMM design that now leads Bitcoin DEX liquidity by volume. The mechanism targets the core problem of making non-productive assets yield-bearing on-chain without penalizing liquidity providers through impermanent loss.
The protocol targets wrapped native assets and tokenized real-world assets—including Bitcoin, Ethereum, tokenized commodities such as gold and silver, and tokenized equities like NVDA.
Unlike traditional models that require liquidity mining subsidies to attract market makers, Yield Basis lets issuers earn directly from liquidity provision. The design removes the subsidy dependency that has historically made sustainable on-chain liquidity difficult to maintain.
Asset holders gain access to yield, and the protocol opens downstream DeFi use cases including collateralization—expanding utility for assets that previously sat idle on-chain.
Acre uses Yield Basis to offer a 14 percent bitcoin yield, a concrete demonstration of the protocol's capacity to generate returns within the Ethereum DeFi ecosystem.
On-chain adoption for tokenized commodities and equities has historically stalled on three problems: impermanent loss, shallow liquidity and the absence of yield or clear liquidation pathways. Yield Basis directly addresses all three.
The protocol functions as yield and liquidity infrastructure rather than a standard AMM, establishing secondary markets for a broader array of assets. Its model makes any sufficiently liquid and volatile asset productive, opening new avenues for capital efficiency in DeFi.
