Kraken is preparing to roll out its new token sale platform, Kraken Launch, and its first offering will be the Bitcoin (BTC) yield protocol called Yield Basis (YB). This marks a significant step for the exchange as it builds tools aimed at bringing new yield opportunities to Bitcoin holders. The move is drawing attention because Yield Basis was developed by Michael Egorov, the founder of Curve, who is known for designing major liquidity infrastructure in DeFi.

Kraken Launch and Its First Offering

Kraken Launch is designed as a global token distribution venue, enabling selected projects to offer tokens to users in a structured and compliant way. The launch of Yield Basis is its first test case. According to Kraken, the sale will be run in partnership with Legion, a platform that uses a reputation-based scoring system to determine token allocations.

This approach reserves 20% of the tokens for users with a Legion Score and opens the remaining allocation to all users on a first-come, first-served basis across both Kraken and Legion.

Kraken has emphasized that all participants will need to complete its intermediate-level KYC process, and a 0.5% purchase fee will apply. Shortly after the sale ends, YB will be listed on Kraken to provide immediate secondary liquidity. This aligns with Kraken’s goal of offering a smooth transition from token distribution to trading.

Yield Basis and Its Mechanism

Yield Basis builds on Curve’s liquidity pool design but focuses specifically on BTC-native yield. The protocol uses an automated re-leverage mechanism to keep liquidity provider exposure aligned with the underlying Bitcoin asset while capturing trading fees.

Participants must decide between two paths, earning real BTC-denominated fees or opting into YB emissions, which distribute tokens to those who lock veYB. The emissions are governed by protocol rules that adjust fee shares based on the number of LPs opting in.

This design seeks to neutralize common issues with AMM curvature risk and maintain balanced exposure for liquidity providers. Curve DAO governance has already approved a proposal to offer a crvUSD credit line to support seeding of BTC pools for YB, which indicates strong community support for the initiative.

Related read: Crypto Exchanges With Highest Yield Earn Products

Partnership with Legion

Legion’s involvement gives the offering a curated distribution process. The platform uses on-chain activity, social participation, and developer contributions to prioritize builders and power users. Kraken brings its compliance infrastructure, which includes adherence to frameworks like MiCA in Europe. The two platforms will also share revenue from token sales and subsequent trading activity, creating a mutually beneficial arrangement.

Legion positions itself as an ICO underwriter, similar to investment banks that manage IPOs in traditional markets. Its system handles pricing, distribution, compliance, and post-sale liquidity support. For Kraken, this partnership strengthens its ability to bring high-profile projects to a global audience.

Kraken’s Growing Push Into New Markets

Kraken has been steadily broadening its reach with a series of product expansions. Over recent months, the exchange has launched tokenized stock offerings in Europe, introduced new perpetual futures contracts, and acquired additional trading infrastructure to strengthen its global presence. Kraken Launch is the latest step in this strategy, creating a dedicated venue for token distribution that integrates directly with its exchange. Yield Basis serves as the first live example of how Kraken plans to connect new protocols with immediate liquidity and a global user base.

Also read: Tokenized Stock Trading Now Live: Kraken, Bybit, and Solana

What Kraken Launch Means for Bitcoin Yield

Kraken Launch’s debut with Yield Basis signals a new phase for Bitcoin (BTC) yield protocols and for Kraken’s platform strategy. By combining Legion’s reputation-based distribution with its own compliance framework, Kraken is aiming to provide a more structured way to access new yield opportunities. While key details like emission pacing and pricing have yet to be disclosed, the collaboration sets the stage for a more transparent and globally accessible process for BTC-native yield products.