Overview of new projects from DeFi OG: Curve founder creates BTC pool, Andre Cronje aims to build a versatile exchange.

The new projects of two DeFi veterans aim to solve the on-chain liquidity problem, bringing innovative trading and investment mechanisms. This article is sourced from Ash's writings, organized, compiled, and authored by Deep Tide TechFlow. (Previous context: The ambition of the four beauties: How DeFi disrupts the stablecoin market through vertical integration) (Background supplement: Vitalik's new article: Low-risk DeFi for Ethereum is like search for Google) @newmichwill, the founder of Curve Finance, is launching @yieldbasis, a Bitcoin AMM liquidity platform with no impermanent loss (Deep Tide note: IL, impermanent loss, refers to the losses that a liquidity provider may incur when providing funds to an AMM compared to simply holding these tokens); at the same time, @AndreCronjeTech, the founder of @yearnfi and the DeFi god, is building @flyingtulip_, a unified AMM+CLOB (Deep Tide note: Automated Market Maker + Central Limit Order Book, where AMM provides continuous liquidity and automatic pricing, and CLOB offers more precise price discovery and order execution) exchange. Two different attempts to solve the same problem—how to make on-chain liquidity truly effective: Yield Basis ($YB): a Curve native AMM that eliminates the impermanent loss for BTC liquidity providers by holding a constant 2x leveraged BTC-crvUSD liquidity pool (the value of LP remains 1:1 with BTC while earning trading fees). Users can mint ybBTC (yield-generating BTC). Flying Tulip ($FT): a unified on-chain exchange (including Spot, Lending, Perpetual Futures, Options, and Structured Returns) based on a volatility-sensitive hybrid AMM+CLOB structure, combined with a slippage-sensitive lending mechanism, and ftUSD serving as the core incentive (a Delta-neutral USD equivalent). Yield Basis's traditional AMM allows BTC liquidity providers to sell when prices rise or buy when prices fall (√p exposure, Deep Tide note: market risk exposure measured in the square root of price), resulting in impermanent losses that usually exceed the fees earned from providing liquidity. The specific mechanism of Yield Basis will be detailed later, but the core is: Users deposit BTC into the platform, the protocol borrows an equivalent amount of crvUSD, forming a 50/50 BTC-crvUSD Curve liquidity pool, and operates with 2x compound leverage. A re-leveraged AMM and virtual pool will maintain debt approximately equal to 50% of the liquidity pool's value; arbitrageurs profit by maintaining constant leverage. This ensures that the value of the liquidity pool changes linearly with BTC while earning trading fees. Liquidity providers hold ybBTC, a yield-generating BTC receipt token that automatically compounds trading fees denominated in BTC. The platform also provides governance token $YB, which can be locked as veYB for voting (such as selecting liquidity pool reward allocations). Yield Basis primarily targets BTC holders who wish to release productive BTC and earn fees in protocols that solve the impermanent loss problem. The user experience and risk settings of traditional decentralized exchanges (DEX) are often static. However, Flying Tulip aims to introduce centralized exchange (CEX)-level tools on-chain by dynamically adjusting the AMM curve based on volatility and the loan-to-value ratio (LTV) of lending based on actual execution conditions/slippage. Its AMM adjusts curvature based on measured volatility (EWMA)—flattening in conditions of low volatility (close to constant) to compress slippage and impermanent loss; exhibiting more multiplicative characteristics in conditions of high volatility to avoid liquidity exhaustion. The ftUSD tokenized Delta-neutral liquidity pool position generation is used for incentive mechanisms and liquidity programs. The platform token $FT may be used for income buybacks, incentives, and liquidity programs. Flying Tulip is a DeFi super application: an exchange that supports Spot, Lending, Perpetual Futures, and Options simultaneously. Execution quality relies on accurate volatility/influence signals and robust risk control under stressful environments. Outlook for the two projects: Yield Basis hopes to become the platform for BTC liquidity; while Flying Tulip is committed to becoming the platform for all on-chain native trading. In the current era where perpetual contract decentralized exchanges (Perp DEX) are mainstream, the launch of Flying Tulip is timely. Frankly, if it can deliver optimal execution, Flying Tulip could even draw future BTC traffic to funding pools like YB. If Yield Basis successfully achieves its goals, ybBTC may become Bitcoin's 'stETH' native: BTC exposure + liquidity provider (LP) trading fees, with no impermanent loss. Flying Tulip has the potential to introduce its integrated stack, allowing users to obtain tools at the level of centralized exchange (CEX); attempting 'one-stop trading covering all DeFi'. While maintaining a cautiously optimistic attitude towards these two projects, it should not be overlooked that these veteran founders and top teams have yet to test their projects, and the founders also need to balance the development of other protocols (such as Curve and Sonic). The above image is compiled by Deep Tide TechFlow as follows: Related reports Understanding Pendle and Boros: Turning funding rates into DeFi derivatives A Beginner's Guide to DeFi (Part 2): How can off-chain office workers steadily earn stablecoins at 10% APR? How RWA can help DeFi break through dimensional walls? Let cryptocurrencies move towards external circulation <A review of new projects from DeFi OG: Curve founder creates BTC pool, Andre Cronje aims to build an all-purpose exchange> This article was first published in BlockTempo, “The Most Influential Blockchain News Media”.