Yield Basis

Yield Basis borrows crvUSD from crvUSD minting mechanism. It is required for operation of Yield Basis pools.

Particularly, it results in borrowing $1 on top of 1$ liquidity brought by LP to Yield Basis pool.

If Yield Basis attracted $10m TVL, it means that it must borrow $10m crvusd to be able to operate without Impermanent Loss

How it affects Curve? and veCRV?

1. Interest rate, paid for borrowing crvUSD is NOT paid to Curve. It is used for Yield Basis positions re-leverage, it is NOT benefiting veCRV
2. What benefits veCRV -> indirectly -> if someone sells BTC in Yield Basis pool, he receives crvUSD that needs to be changed to USDT(or USDC..) to be able to used in general finance applications. So, it drives trading fees derived from newly minted crvUSD supply that is used for Yield Basis pools. Indirectly.
3. There is a YB - crvUSD pool launched in Curve, and it will be the only liquidity spot for YB at the beguinning, so all trading volumes will also benefit Curve -> veCurve by means of fees