Macauley Peterson

Kraken is set to christen its new public-offering venue, Kraken Launch, with Yield Basis (YB), the protocol from <a href="https://blockworks.co/tag/curve">Curve</a> founder Michael Egorov that targets BTC-native, fee-driven yield while neutralizing AMM curvature risk.&nbsp;



The sale will run in <a href="https://blockworks.co/news/kraken-legion-token">partnership with Legion</a>, whose reputation-based access system has been used for prior token launches.



The offering is slated to roll out in two phases: Phase 1 allocates up to 20% of the sale to users with a Legion Score on legion.cc; Phase 2 opens remaining tokens simultaneously on Kraken and Legion on a first-come, first-served basis.&nbsp;



Legion says allocations are informed by verified activity (on-chain, social, GitHub) to skew toward builders and power users, while Kraken provides global distribution and compliance rails (e.g., <a href="https://blockworks.co/tag/mica">MiCA</a> in Europe). YB is expected to list on <a href="https://blockworks.co/tag/kraken">Kraken</a> shortly after the sale, offering immediate secondary liquidity. <a href="https://blockworks.co/news/michael-egorov-yield-basis-protocol">Yield Basis</a> builds on Curve’s liquidity pool architecture with an automated re-leverage mechanism that keeps LP exposure aligned with the underlying asset (namely BTC on <a href="https://blockworks.co/tag/ethereum">Ethereum</a>) while harvesting trading fees.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=1024&amp;h=1024" alt="" class="wp-image-108126" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-143.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: <a href="https://app.blockworksresearch.com/analytics/dex-volume?dashboard=289">Blockworks Research</a></figcaption></figure>







Economically, LPs must choose one of two paths: either take real BTC-denominated fees or forgo those fees to receive YB emissions — but not both. Locked veYB governs emissions and receives a share of protocol fees via a dynamic admin fee that adjusts with the share of LPs opting into emissions (described as ~10% minimum up to 100% in the extreme case where everyone chooses emissions).



Tokenomics, as disclosed to Curve DAO shows, 30% to liquidity incentives (inflation), 25% team, 15% ecosystem reserve, 12.1% investors, 7.5% for “Curve licensing”, 7.4% protocol development reserve and 3% liquidity incentives &amp; Curve voting reserve. Detailed emission pacing, vesting schedules, and sale pricing were not included and have not yet been publicly disclosed.



Yield Basis <a href="https://blockworks.co/news/curve-debates-60m-pre-mint">has requested</a> a crvUSD credit line from Curve DAO to seed BTC pools. The related <a href="https://www.curve.finance/dao/ethereum/proposals/1206-ownership">on-chain proposal</a> has reached quorum with a large “Yes” margin, signaling strong community support. The proposal text links the 7.5% allocation to future crvUSD liquidity incentives (ultimately directed by veCRV governance), aligning YB’s growth with Curve’s stablecoin flywheel.



The Kraken–Legion collaboration gives YB strong initial distribution while trialing a merit-based retail allocation at scale. For Curve’s ecosystem, the vote outcome and the dedicated licensing slice suggest tighter economic linkage between crvUSD routing and YB’s fee-and-emissions engine — just as BTC volatility and on-chain liquidity heat up this cycle.



This article was updated on 9/22/2025 at 11:50 a.m. to include links to key topics.



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kraken

Kraken and Legion ready Yield Basis for ‘Launch’

Blockworks

Kraken will begin hosting token sales from Legion, a fundraising platform backed by VanEck and Brevan Howard Digital, expanding compliant crypto offerings to millions of global users.



<a href="https://x.com/legiondotcc/status/1968676587085144291">Announced</a> on Thursday, the initiative integrates Legion’s reputation-based allocation model with Kraken Launch, the exchange’s new onchain fundraising hub.



Unlike traditional first-come fundraising models, Legion uses a “Legion Score” to allocate up to 20% of each sale to contributors such as developers, DeFi users, and community leaders. This approach is intended to reward long-term industry participants while reducing the influence of bots and speculative wallets. Remaining allocations will be available both on Legion and Kraken Launch, with trading set to open shortly after each sale concludes.



Kraken executives framed the collaboration as part of a broader strategy to build crypto-native financial infrastructure. “Kraken is building the foundation of tomorrow’s financial infrastructure with crypto at its core,” said Brett McLain, Head of Payments and Blockchain at Kraken. “Together with Legion, we’re scaling a product that democratizes token sales and aligns communities with builders.”



The exchange previously participated in Legion’s $5 million seed round, deepening ties between the two firms.



Both companies emphasized investor protections, with token sales requiring MiCA-compliant disclosures, due diligence, and transparent allocations. The approach mirrors rising regulatory pressure in Europe and contrasts with enforcement-driven oversight in the United States.



Legion’s founders argue that democratized fundraising can align projects with their most engaged communities.&nbsp;



“The next Figma or Reddit won’t IPO. It will launch to its community on-chain,” said Legion co-founder Matt O’Connor.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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