thedefiant.io
28 October 2026 20:43, UTC
Yield Basis said on Oct. 28 that traders can extract pool value through a deposit-and-withdraw route “without paying proper fees,” and that a proposed WETH-market upgrade would close it. The rollout still requires governance approval.
The announcement did not quantify a loss, confirm whether anyone had used the route or specify how long it had been available. “We will publish the details after all pools have the fix,” Yield Basis said.
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Its WETH market holds a 2x leveraged position in Curve’s WETH/crvUSD pool and issues yb-WETH shares to depositors. The team’s research put the underlying pool’s value at about $32 million on Oct. 21.
The Curve governance proposal identifies a specific safeguard: new liquidity-token deposits must add debt proportional to their newly minted liquidity-provider collateral, within one basis point. It describes that constraint as protection against value extraction through a deposit followed by a withdrawal.
The safeguard accompanies a broader change to how the pool charges for arbitrage. Its existing swap fees range from 1.36% to 2.82%, and it re-centers liquidity toward an average of its own trade prices, according to the team’s research.
The proposed policy would instead use signed Pyth Pro ETH/USD reports to set swap fees and guide where the pool concentrates liquidity. Curve’s pool formula would still determine trade prices, rather than the external report setting them directly.
Swaps moving the pool toward a fresh reported market price without crossing it would pay a base fee of 0.50%, plus 67.5% of the trader’s edge above 0.50%, capped at 1.75%. The edge measures the trade’s price advantage at the reported market price. Other swaps would pay 1.75%, and the discount would disappear after five minutes as a stored report ages.
Yield Basis proposal 60 remained active at the time of reporting, with voting scheduled to end Oct. 29. It states that it can execute only after Curve vote 1508 has been executed. The Curve proposal says votes on both platforms are needed for the parameters to take full effect.
Yield Basis plans to start with WETH, then seek separate votes for the cbBTC, WBTC and tBTC pools after successful WETH deployment.
