> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/readme/yield-basis-and-ybbtc.md).

# Yield Basis and ybBTC

Yield Basis (YB) is a separate protocol that applies 2× compounding leverage to a Curve Cryptoswap BTC/crvUSD LP position. The leverage transforms the LP token's price exposure from $$\sqrt{P}$$ (the standard AMM curve) to $$P$$ (linear with BTC), eliminating impermanent loss while still earning trading fees. The token representing this leveraged position is called ybBTC.

Bitcoin Dollar is not competitive with Yield Basis — we are complementary. 

The BTCD Portfolio aims to be one of the largest holders of ybBTC, channeling its yield to BTCD users while hedging the risks individual ybBTC holders would otherwise face such as Temporary Redemption Discount (TRD).