Kraken, a major cryptocurrency exchange, has announced the debut of its new token launch platform, Kraken Launch, with the first project being Yield Basis (YB), a Bitcoin-native yield protocol created by Michael Egorov, the founder of the DeFi protocol Curve Finance.
The partnership involves Legion, a reputation-based access platform for token distributions, to ensure a fair and merit-based allocation process. Kraken Launch aims to provide users with early, compliant access to token sales in a transparent manner. This is the inaugural offering on the platform.
The YB sale will occur in two phases: Phase 1 is reserved for users with high Legion Scores a reputation metric, allocating about 20% of the supply. Phase 2 is open to all eligible Kraken users. YB tokens are expected to list on Kraken shortly after the sale, providing immediate liquidity.
Total supply is capped at 1 billion YB tokens, with 300 million in initial circulation. Yield Basis is designed to generate BTC-native yields through a fee-driven model on Ethereum, building on Curve’s automated market maker (AMM) architecture.
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Automated Re-Leveraging maintains liquidity provider (LP) exposure aligned with underlying BTC assets, minimizing impermanent loss from AMM curvature risks. Locked veYB vote-escrowed YB tokens govern emissions and earn a share of protocol fees via a dynamic admin fee minimum ~10%, up to 100% based on LP opt-ins.
Approved by Curve DAO for a $60 million crvUSD credit line to seed three Bitcoin liquidity pools each capped at $10 million. This ties YB’s growth to Curve’s stablecoin ecosystem, with 35–65% of revenue shared with veCRV holders and 25% reserved for the Curve ecosystem.
This move comes amid Curve’s efforts to enhance CRV tokenomics through revenue-sharing, following Egorov’s proposal on September 17, 2025, to transform governance tokens into yield-bearing assets. The launch highlights growing demand for on-chain Bitcoin liquidity strategies.
Yield Basis introduces a novel way to generate BTC-native yields on Ethereum using Curve’s AMM infrastructure. This could drive greater adoption of Bitcoin in DeFi by enabling holders to earn sustainable yields without relying on volatile, high-risk strategies.
The protocol’s automated re-leveraging and dynamic fee structure 10–100% admin fees aim to minimize impermanent loss and provide stable returns, appealing to institutional and professional traders seeking low-risk BTC exposure.
By integrating with Curve’s $60 million crvUSD credit line and sharing revenue with veCRV holders, Yield Basis strengthens Curve’s ecosystem while competing with other Bitcoin-focused DeFi protocols (e.g., Aave, MakerDAO) for liquidity and user attention.
Kraken Launch’s use of Legion’s reputation-based scoring for Phase 1 allocations promotes merit-based access, potentially reducing bot-driven or whale-dominated token sales. This could set a precedent for equitable token distribution in the industry.
By offering early access to high-potential projects like YB, Kraken strengthens its position as a leading exchange for both retail and institutional users, competing with platforms like Binance Launchpool or Coinbase.
Yield Basis’s integration with Curve, including the 35–65% revenue share with veCRV holders and 25% allocation to Curve’s ecosystem, enhances CRV’s tokenomics. This aligns with Egorov’s vision to transform governance tokens into yield-bearing assets, potentially increasing CRV’s value and utility.
The allocation of 3% of YB tokens for Curve voting reserves suggests ongoing collaboration, giving Curve DAO influence over Yield Basis’s development and potentially aligning the two protocols’ long-term goals.
Yield Basis’s focus on professional traders and institutions, combined with its low-risk yield model, could attract traditional finance players to DeFi, especially as Bitcoin remains a preferred crypto asset for institutions.
Yield Basis’s success depends on effective management of liquidity pools and fee distribution. Any technical issues or mismanagement could undermine confidence in the protocol.
As a BTC-focused protocol, YB’s performance is tied to Bitcoin’s price stability and DeFi market conditions, which could impact yields and adoption. Other DeFi platforms offering Bitcoin yield strategies may challenge Yield Basis’s market share, requiring differentiation through innovation or partnerships.
The Kraken-Legion-Yield Basis partnership marks a significant step in integrating Bitcoin with DeFi, enhancing Curve’s ecosystem, and establishing Kraken as a player in token launches. It could drive institutional adoption, improve token sale fairness, and set new standards for yield-generating protocols.