Creative leverage solves the impermanent loss problem — Curve founder

Key Points

1. Impermanent loss is a major barrier for crypto holders to become liquidity providers on DeFi platforms.

2. Yield Basis uses compounding leverage to keep positions overcollateralized by 200% with borrowed crvUSD.

3. The protocol aims to stabilize the price of the position at double the collateral, reducing risks for LPs.

4. Dr. Egorov highlights the need for different strategies in varying market conditions to optimize yields.

5. The approach provides a market-based solution to token inflation and emissions while addressing impermanent loss.