Kraken and Legion Unite to Launch Yield Basis: A New Era for Token Crowdsales

In an exciting development for cryptocurrency enthusiasts and investors, Kraken has launched its new token sale platform, Kraken Launch, with its maiden project being Yield Basis ($YB), a creation of Curve’s founder Michael Egorov. This initiative targets Bitcoin and Ethereum holders, providing them with a steady annualized yield ranging from 9% to 20.5%, driven by fees.

What is Yield Basis?

Yield Basis, a fees-driven yield protocol, is designed for the crypto-savvy with holdings in Bitcoin and Ethereum. It builds on the proven liquidity pool architecture of Curve and introduces an automated re-leveraging feature. By enhancing the Automated Market Maker (AMM) system, Yield Basis aims to offer more stable and sustainable liquidity provision, significantly mitigating the impermanent loss challenge common in DeFi ecosystems.

Earlier this year, Yield Basis drew attention by raising $5 million through a token sale, where 10% of its token supply (100 million $YB tokens) was sold, projecting a valuation of $50 million.

The Kraken Launch and Legion Collaboration

The collaboration between Kraken and the Legion platform marks the commencement of public sales for Yield Basis ($YB) on Kraken Launch. According to reports, the sale is structured into two distinct phases, drawing from Legion’s innovative scoring system.

• In the first phase, 20% of the allocation is reserved for users meeting the Legion Score threshold, reflecting contributions to GitHub, blockchain activity, and social media influence. This phase primarily targets developers and crypto influencers.
• The second phase offers a first-come, first-served opportunity accessible to Kraken and Legion platform users.

Post-sale, $YB will be listed on Kraken to enhance its market liquidity. However, specific details regarding the sale’s timing, pricing, and any potential lock-up periods remain undisclosed.

YB Tokenomics: A Strategic Community-Focused Approach

The YB token distribution is strategically crafted to benefit a varied group of stakeholders:

• 30% is allocated to community incentives.
• 25% is reserved for the team.
• 15% is saved for ecosystem reserves.
• 12.1% goes to investors.
• 7.5% is directed towards Curve technology licensing.
• 7.4% is maintained for protocol development reserves.
• 3% fuels voting and liquidity incentives.

Egorov has also proposed creating $60 million in crvUSD through Yield Basis, focusing on three Bitcoin pools (WBTC, cbBTC, and tBTC) to deliver direct earnings to token holders.

Furthermore, 35% to 65% of the yields will directly reward veCRV holders, with an additional 25% feeding back into the Curve ecosystem. This strategy not only boosts the liquidity of crvUSD but also tightly integrates YB’s growth with Curve’s stablecoin expansion strategy.

A Pioneering Public Sale Experiment

The partnership between Kraken and Legion sets the stage for a large-scale experiment in “reputation-based allocation,” ensuring global distribution and compliance.

As the inaugural public sale from these two influential platforms, the specific sale details will likely spark considerable interest and potentially trigger a significant buying frenzy.

This article was initially featured on ABMedia.