Yield Basis Activates Fee Switch, Unlocking First Major Distribution to veYB Holders

Yield Basis, the Bitcoin-focused liquidity protocol founded by Michael Egorov, has reached a major milestone with the activation of its long-anticipated Fee Switch. This upgrade marks the beginning of protocol fee distribution to veYB token holders, in line with the original tokenomics design.

Over $1.6 Million in Accumulated Fees Now Ready for Distribution

The protocol has collected 17.55 BTC — approximately $1.62 million — from both legacy and new liquidity pools. These funds, previously inaccessible, are now allocated for distribution to veYB holders. The proposal received DAO approval and officially went live on December 4, 2025, making the first portion of fees claimable at 00:00 UTC.

How Fee Distribution Now Works

Yield Basis earns revenue through trading fees across its liquidity pools. These fees were previously split between liquidity providers and an admin fee that accumulated unused in the DAO contract. After the Fee Switch activation, admin fees are routed into a distributor contract, where they will be released to veYB holders based on their governance weight for each epoch.

Approximately 31 million veYB — representing about $14.3 million in locked value — is currently eligible to share the 17.55 BTC in accumulated revenue. Distribution will occur over the next four weeks, placing Yield Basis among the most profitable protocols in terms of yield per token.

A Long-Term Revenue Loop for YB Token Holders

With the Fee Switch enabled, the YB token model now operates in its intended form. veYB holders gain direct access to protocol fee rewards, while governance participants receive both influence and tangible economic value. All future admin fees generated by the protocol will follow the same four-week distribution cycle.

Strengthening Ties with Curve Finance

The upgrade further deepens the connection between Yield Basis and Curve Finance, whose ecosystem plays a foundational role in Yield Basis pool operations. With YB tokens now offering revenue utility when locked as veYB, Curve DAO voters have stronger incentives to support crvUSD pools. This alignment may contribute to greater liquidity depth, healthier incentives, and smoother overall operation across both protocols.

The activation of the Fee Switch marks a defining moment for Yield Basis, transitioning the protocol into a fully operational, revenue-sharing governance system with one of the strongest yield models in the Bitcoin liquidity sector.