The founder of one of DeFi's heavyweight protocols, Michael Egorov, is tackling a pain point that's been draining capital from liquidity providers. His approach? A leveraged solution that could reshape how LPs interact with pools.

Here's the mechanism: Users drop Bitcoin into a 2x-leveraged BTC/crvUSD pool. The protocol then borrows crvUSD against that position, essentially letting LPs amplify their exposure without needing to source additional capital upfront.

What makes this interesting is the automatic debt management—the system handles the borrowed stablecoin portion while users maintain leveraged upside on their BTC. It's designed to boost yields for liquidity providers who've traditionally struggled with impermanent loss and shallow returns in volatile pairs.

Whether this attracts the capital flows Egorov's betting on depends on how the market responds to amplified risk-reward ratios in practice.