ZUG, Switzerland, Dec. 5, 2025 /PRNewswire/ --Yield Basis, the Bitcoin-focused liquidity protocol founded by Michael Egorov, has reached one of its most important milestones to date — the activation of the Fee Switch. The Fee Switch event officially launches the distribution of captured protocol fees to veYB token holders, following the initial protocol plans.

In total, 17.55 BTC (about $1.62 million) in already-collected fees is now awaiting distribution to veYB holders. This amount includes fees collected from legacy pools and new-implementation pools. 

The proposal itself is available on the Yield Basis website and has already been approved by Yield Basis DAO members. The Fee Switch has gone live on December 4th, 2025, with the first fees becoming claimable at 00:00 UTC.

Yield Basis earns fees from trading activity in its liquidity pools. These fees are split between liquidity providers (LPs) and an admin fee. With the Fee Switch, the collected admin fee will be distributed to Yield Basis DAO participants holding veYB (a vote-escrowed form of the $YB token). YB tokens that are not locked into veYB are not eligible to participate in receiving a share of the mentioned fees.

Before the upgrade, all admin fees were accumulating in the DAO contract and remained inaccessible. After the Fee Switch, fees are routed to a distributor contract, where they will be temporarily held until distribution. veYB holders will then be able to claim their share according to their governance weight in each epoch.

It means that already accumulated protocol fees (17.55 BTC or ~$1.62M) will be distributed to existing veYB holders (accounting for ~31M veYB in total or $14.3M of value locked) during the next four weeks. Such yield per token metrics place Yield Basis as one of the leading revenue-generating protocols, rewarding the protocol governance system.

Since Yield Basis generates fees continuously from trading activities, it is worth mentioning that all future fees will be distributed according to the same timeline as governance system rewards (a four-week schedule). 

As a result, Fee Switch implementation delivers the entire planned utility for the YB token:

• veYB holders can participate in receiving protocol fees
• governance participants receive both voting power and real economic value
• the token model begins operating in its intended "closed revenue loop."

The upgrade also strengthens the relationship between Yield Basis and the Curve Finance ecosystem, which supports the protocol at the foundational layer. With the Fee Switch enabled, Curve DAO voters will receive YB tokens with an enhanced value proposition — due to the option of locking them into yield-generating veYB. 

This structure provides an economic rationale for Curve voters to support crvUSD stable pools, which serve a functional role in facilitating Yield Basis pools' operations. The arrangement may contribute to increased liquidity depth and operational stability for crvUSD, while aligning incentives between the two protocols.

About Yield Basis

Yield Basis (YB) is a decentralized protocol created to provide DeFi users, institutional investors, and professional market participants with organic and transparent Bitcoin-denominated yield. It aims to solve one of DeFi's long-standing challenges — impermanent loss — by delivering a new model for AMM-based Bitcoin liquidity.

Contact
Yield Basis
press@yieldbasis.com

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SOURCE Yield Basis