When you deposit crypto assets (like BTC or ETH) into Yield Basis, you receive the yb-LP token back. The yb-LP tracks the value of your underlying asset while earning trading fees. Most of the time, the yb-LP equals the value of your deposited asset plus any accumulated fees.

After market volatility, the value you would receive if you withdrew immediately can temporarily drop below your position's fundamental value. That temporary gap is the Temporary Redemption Discount (TRD).

TRD is not a permanent loss. The leveraged position needs time to rebalance after volatility. Once it adjusts, this discount closes. Withdrawing during TRD locks in the discount as a real loss; waiting allows your position to recover.

TL;DR: TRD is a short-lived discount that appears after price swings. It exists because the Curve pool and LEVAMM need time to rebalance. The same volatility that creates TRD also generates the trading fees that close it.

To understand TRD properly, you need to know the basics behind Yield Basis.

When you deposit 1 BTC, this will happen to create your position.

1. Yield Basis takes your BTC and borrows an matching value of crvUSD (Curve's stablecoin) from the protocol.

2. Both your BTC and the borrowed crvUSD are deposited together into a Curve pool as liquidity.

3. The Curve pool issues LP tokens in return. These LP tokens are held as collateral in a contract called the LEVAMM alongside the crvUSD debt.

You now have a leveraged liquidity position: Curve LP tokens as collateral, crvUSD as debt. The LEVAMM targets a debt-to-value ratio (DTV) of 50%, where debt equals half the collateral's value.

This 2x leverage also serves another important purpose, it's the exact multiplier needed to eliminate impermanent loss.

When the price of the underlying asset (like BTC) moves, the DTV drifts away from 50%. Two things then need to happen to restore the system:

• Arbitrageurs trade the LEVAMM back toward the 50% DTV target, earning fees in the process.

• The Curve pool moves its internal price peg (price_scale) to reflect the new market reality.

TRD happens while these adjustments are still in progress. During that window, the yb-LP is temporarily priced below its fundamental value.

TRD is primarily caused by the state of the underlying Curve pool. Every part of the system, the LEVAMM collateral value, the LP oracle, and what you receive when you withdraw, is influenced by the underlying Curve pool.

the following contribute to TRD:

1. The Curve pool becomes imbalanced

When the price of BTC drops, arbitrageurs sell BTC into the pool and take crvUSD out (reversed when BTC increases). This leaves the pool holding more BTC than crvUSD. The pool is now imbalanced.

This influences withdrawals: an imbalanced pool introduces slippage, giving you a less favorable rate when converting yb-LP back into BTC.

Additionally, the LEVAMM collateral is made of the Curve pool's LP tokens. The value of those LP tokens depends on the pool's internal state, which includes the balance between BTC and crvUSD. So it's not only the withdrawals. Imbalanced pools also reduce the value of the Curve LP token, which feeds directly into the yb-LP price.

While the pool is imbalanced, the pool's price_scale (the internal peg where liquidity is concentrated) lags behind the market. While price_scale remains stale, the pool's liquidity stays centered at the old price, which means withdrawals incur more slippage than they would if the pool had already moved its internal peg.

1. Leverage Drift in the LEVAMM
   The LEVAMM holds your Curve LP tokens as collateral against the crvUSD debt, targeting a DTV of 50%. When BTC drops in value, the collateral (Curve LP tokens) loses value while the debt stays the same. The DTV rises above 50%.

The further DTV moves from 50%, the larger the discount.

The LEVAMM is itself an AMM that trades between crvUSD and LP tokens. It has its own internal price derived from the current debt and collateral amounts. When DTV drifts above 50%, the LEVAMM's internal price of LP tokens drops below the oracle price, creating an arbitrage opportunity.

Arbitrageurs restore DTV by sending crvUSD to the LEVAMM and receiving LP tokens in return. This trade reduces the LEVAMM's debt (the crvUSD sent in cancels against the outstanding debt) while also reducing the collateral (LP tokens leave). But the debt shrinks proportionally more than the collateral value, so DTV moves back toward 50%. Each of these trades pays a fee that accrues to LPs.

This leverage drift is itself a consequence of the Curve pool imbalance. The LP tokens that make up the LEVAMM collateral are valued by the pool's own state. When the pool is skewed, the LP token is worth less, and that is what causes DTV to drift in the first place.

Both factors are interconnected. The pool imbalance reduces LP token value, which causes the LEVAMM's DTV to drift, which widens the discount further. Recovery requires both the pool to rebalance and the LEVAMM's DTV to return to 50%.

When the price of BTC were to drop 10%, two things happen simultaneously:

Inside the Curve pool, price_scale is still centered around the old price. Since the pool is offering rates as if BTC is worth more than the market says, arbitrageurs sell BTC into the pool and take crvUSD out. This continues until the pool's spot price converges with the rest of the market, leaving the pool imbalanced with more BTC than crvUSD. Meanwhile, price_scale remains stale because moving concentrated liquidity has conditions that must be met before it can move (see below).

Inside the LEVAMM, the collateral (LP tokens) has lost value but the debt hasn't changed. The DTV has moved above 50%, and the LEVAMM's internal price of LP tokens has dropped below the oracle price. Arbitrageurs see this opportunity: they send crvUSD to the LEVAMM and receive LP tokens at a price below the external market. This trade reduces the LEVAMM's outstanding debt, pushing DTV back toward 50%. Each such trade pays a fee that goes to LPs.

To understand why recovery takes time, you need to know how the Curve pool manages its internal pricing. The pool uses three price references:

• last_prices — The spot rate from the most recent trade, updated on every swap. It reflects where the market is right now but is also manipulable since a single large trade can distort it.

• price_oracle — A smoothed average (EMA) of last_prices. It updates once per block and moves toward last_prices gradually. The smoothing is intentional: it resists manipulation at the cost of being slower.

• price_scale — The internal peg where the pool concentrates its liquidity. Think of it as the pool saying: "I believe the price of BTC is here, so I'll make my best rates available around this range". This is the slowest to move, and the one that matters most for TRD recovery.

For price_scale to move, the pool needs to be able to afford the cost of shifting its liquidity concentration. Specifically, the pool needs to have earned enough profit from trading fees to absorb the cost. price_scale lags behind deliberately; this is a safety mechanism to prevent the pool from being tricked into moving concentrated liquidity too fast.

1. price_scale needs to converge with price_oracle. Every trade helps nudge them closer together, but price_scale moves gradually by design. Making price_scale move fast would make it too easy to manipulate.

2. The gap must exceed a minimum adjustment_step. The pool only adjusts price_scale when the distance between price_oracle and price_scale is large enough for a move. This prevents wasteful, tiny adjustments.

3. The pool must be able to afford the move. Moving price_scale costs the pool value (its virtual_price can drop when liquidity concentration shifts). The pool only allows this if accumulated trading profits can cover the cost. The specific rule: the pool must retain at least half of all profits earned since launch after moving concentrated liquidity.

Until all three conditions are met, price_scale stays where it is. The pool's liquidity remains concentrated at the old price, withdrawals incur slippage through that misaligned liquidity, and TRD persists.

YB: crvUSD-wBTC pool

Recovery is funded by multiple fee sources coming from the very volatility that caused the imbalance. The most volatile days produce the biggest TRD but also earn the most fees.

1. Curve pool trading fees — Every swap through the Curve pool generates fees that increase virtual_price, creating the profit buffer the pool needs to move concentrated liquidity.

2. LEVAMM arbitrage fees — When arbitrageurs trade with the LEVAMM to restore DTV, they pay a fee on each trade. These fees accrue directly to LPs.

3. Interest fee donations. — The LEVAMM charges interest on the borrowed crvUSD. This interest is donated directly into the Curve pool. "Donated" means the interest is added as liquidity, but the resulting LP tokens are not given to anyone. Instead they go into a time-locked buffer that releases gradually. The effect is that the pool's virtual_price increases for existing holders, giving the pool the profit buffer it needs to move price_scale.

During recovery, the protocol waives its admin fee on any value that accrues below the high-water mark. Only profits above the high-water mark have the admin fee applied. This means during the recovery period, a larger share of fees flow to LPs rather than the protocol.

You can watch the redemption PPS converge with the fundamental PPS on the analytics page.

Pangea report
Pangea report on FXSwap

TRD can be amplified when crvUSD deviates from its $1.00 peg. The LP oracle multiplies by the aggregated crvUSD/USD price, and the LEVAMM's value is denominated in crvUSD. If crvUSD trades below $1.00, the LP oracle reports a lower value, widening TRD.

This resolves on its own when crvUSD returns to its $1.00 peg. Because crvUSD has its own stabilization mechanisms (Peg Keepers, Monetary Policy), these deviations tend to be short-lived, but they can temporarily make TRD look worse than the actual pool state warrants.

Yield Basis has pools for different BTC wrappers as well as WETH, but not all pools experience TRD equally.

The WETH pool composition looks much more balanced compared to the BTC wrappers, yet it has the worst TRD. To understand why, we need to look at one of the parameters in Curve pools called A (the amplification coefficient).

A controls how tightly liquidity is concentrated around price_scale. Think of it as a dial between two extremes:

• Turn it all the way up and you get something close to a stableswap, where nearly all liquidity is concentrated around a tight price range. Great rates near the peg, but close to nothing as price moves away.

• Turn it all the way down and you get something close to a Uniswap V2 pool, where liquidity is spread evenly. Less capital efficient but more robust to price movement.

BTC pools use higher A because BTC is less volatile compared to ETH. Tighter concentration means better execution on trades around the current price.

ETH pools use lower A because ETH is more volatile, requiring wider liquidity distribution.

Here is where this connects to TRD:

Moving price_scale to a new price has a cost. When the pool moves concentrated liquidity, it recomputes the pool's invariant at the new price and virtual_price (the protocol's internal measure of value per share) drops. That's why you can see PPS drop.

A high A pool concentrates liquidity more tightly, so the cost of moving concentrated liquidity is more expensive. In the BTC pools where A is high, price_scale takes longer to catch up because the pool needs to accumulate more profit before it can afford to move concentrated liquidity. Meanwhile, it remains profitable to sell BTC into the pool, which is why the balance is skewed.

A low A pool spreads liquidity wider, so moving concentrated liquidity is cheaper. price_scale moves faster, virtual_price adjusts, and TRD shows up immediately in the oracle price. This is why the ETH pool can show worse TRD despite appearing more balanced: the lower A lets price_scale update more quickly, so the LP oracle reflects the current state sooner.

If you withdraw during high TRD, you get less BTC per yb-BTC than you would once the position has fully rebalanced.

When you withdraw, the system removes your proportional share of LP tokens from the LEVAMM, repays the corresponding crvUSD debt to the Curve pool, and returns the remaining asset (BTC) to you. During TRD, the Curve pool is imbalanced and price_scale is stale, so this conversion gives you a worse rate than it would under normal conditions.

Withdrawing during TRD locks in the temporary discount as a real loss. If you wait, the LEVAMM's debt ratio converges back toward 50%, the Curve pool re-balances, and the yb-LP returns to tracking BTC plus accumulated fees.

Your position continues to earn fees during TRD. The volatility and arbitrage activity that created TRD are also creating fees that help fund recovery.

How big can TRD get?
TRD size depends on the magnitude and speed of the price move, the pool's A parameter, and how quickly arbitrageurs step in. Larger, faster moves produce bigger TRD. The analytics page shows current TRD for each pool.

How long does recovery take?
Recovery depends on trading volume and continued volatility. Higher volume generates more fees, which funds faster re-balancing. There is no fixed timeline; it is driven by market activity. In the past we have seen that it can take up to a month to restore TRD.

Can TRD fail to recover?
Yield Basis is designed so that the same volatility creating TRD generates recovery fees. However, in the unlikely event where trading volume dries up entirely (no volume
whatsoever), recovery would slow. The protocol includes an emergency withdrawal mechanism as a safety net if the system enters a critical state.

Do I still earn fees during TRD?
Yes. Your position continues earning Curve pool trading fees, LEVAMM arbitrage fees, and interest donations throughout the TRD period.

What do I get back when I withdraw?
You receive your original asset (e.g., BTC). The system handles the debt repayment internally: it removes LP tokens from the Curve pool, repays the crvUSD debt, and returns the remaining BTC to you.

While TRD can look alarming at first, the protocol is doing exactly what it is designed to do.

Leverage is the tool that eliminates impermanent loss. But leverage also amplifies any short-term fluctuations in the underlying Curve pool's state. The same volatility that creates TRD also generates the fees to close it.

As an LP, withdrawing into the discount turns a temporary situation into a permanent one. The better approach: visit the analytics page, watch the pool composition rebalance, and wait for redemption PPS to converge with fundamental PPS. Once it does, your yb-LP reflects the underlying asset plus all accumulated fees.

When you deposit crypto assets (like BTC or ETH) into Yield Basis, you receive the yb-LP token back. The yb-LP tracks the value of your underlying asset while earning trading fees. Most of the time, the yb-LP equals the value of your deposited asset plus any accumulated fees.

After market volatility, the value you would receive if you withdrew immediately can temporarily drop below your position's fundamental value. That temporary gap is the Temporary Redemption Discount (TRD).

TRD is not a permanent loss. The leveraged position needs time to rebalance after volatility. Once it adjusts, this discount closes. Withdrawing during TRD locks in the discount as a real loss; waiting allows your position to recover.

TL;DR: TRD is a short-lived discount that appears after price swings. It exists because the Curve pool and LEVAMM need time to rebalance. The same volatility that creates TRD also generates the trading fees that close it.

To understand TRD properly, you need to know the basics behind Yield Basis.

When you deposit 1 BTC, this will happen to create your position.

1. Yield Basis takes your BTC and borrows an matching value of crvUSD (Curve's stablecoin) from the protocol.

2. Both your BTC and the borrowed crvUSD are deposited together into a Curve pool as liquidity.

3. The Curve pool issues LP tokens in return. These LP tokens are held as collateral in a contract called the LEVAMM alongside the crvUSD debt.

You now have a leveraged liquidity position: Curve LP tokens as collateral, crvUSD as debt. The LEVAMM targets a debt-to-value ratio (DTV) of 50%, where debt equals half the collateral's value.

This 2x leverage also serves another important purpose, it's the exact multiplier needed to eliminate impermanent loss.

When the price of the underlying asset (like BTC) moves, the DTV drifts away from 50%. Two things then need to happen to restore the system:

• Arbitrageurs trade the LEVAMM back toward the 50% DTV target, earning fees in the process.

• The Curve pool moves its internal price peg (price_scale) to reflect the new market reality.

TRD happens while these adjustments are still in progress. During that window, the yb-LP is temporarily priced below its fundamental value.

TRD is primarily caused by the state of the underlying Curve pool. Every part of the system, the LEVAMM collateral value, the LP oracle, and what you receive when you withdraw, is influenced by the underlying Curve pool.

the following contribute to TRD:

1. The Curve pool becomes imbalanced

When the price of BTC drops, arbitrageurs sell BTC into the pool and take crvUSD out (reversed when BTC increases). This leaves the pool holding more BTC than crvUSD. The pool is now imbalanced.

This influences withdrawals: an imbalanced pool introduces slippage, giving you a less favorable rate when converting yb-LP back into BTC.

Additionally, the LEVAMM collateral is made of the Curve pool's LP tokens. The value of those LP tokens depends on the pool's internal state, which includes the balance between BTC and crvUSD. So it's not only the withdrawals. Imbalanced pools also reduce the value of the Curve LP token, which feeds directly into the yb-LP price.

While the pool is imbalanced, the pool's price_scale (the internal peg where liquidity is concentrated) lags behind the market. While price_scale remains stale, the pool's liquidity stays centered at the old price, which means withdrawals incur more slippage than they would if the pool had already moved its internal peg.

1. Leverage Drift in the LEVAMM
   The LEVAMM holds your Curve LP tokens as collateral against the crvUSD debt, targeting a DTV of 50%. When BTC drops in value, the collateral (Curve LP tokens) loses value while the debt stays the same. The DTV rises above 50%.

The further DTV moves from 50%, the larger the discount.

The LEVAMM is itself an AMM that trades between crvUSD and LP tokens. It has its own internal price derived from the current debt and collateral amounts. When DTV drifts above 50%, the LEVAMM's internal price of LP tokens drops below the oracle price, creating an arbitrage opportunity.

Arbitrageurs restore DTV by sending crvUSD to the LEVAMM and receiving LP tokens in return. This trade reduces the LEVAMM's debt (the crvUSD sent in cancels against the outstanding debt) while also reducing the collateral (LP tokens leave). But the debt shrinks proportionally more than the collateral value, so DTV moves back toward 50%. Each of these trades pays a fee that accrues to LPs.

This leverage drift is itself a consequence of the Curve pool imbalance. The LP tokens that make up the LEVAMM collateral are valued by the pool's own state. When the pool is skewed, the LP token is worth less, and that is what causes DTV to drift in the first place.

Both factors are interconnected. The pool imbalance reduces LP token value, which causes the LEVAMM's DTV to drift, which widens the discount further. Recovery requires both the pool to rebalance and the LEVAMM's DTV to return to 50%.

When the price of BTC were to drop 10%, two things happen simultaneously:

Inside the Curve pool, price_scale is still centered around the old price. Since the pool is offering rates as if BTC is worth more than the market says, arbitrageurs sell BTC into the pool and take crvUSD out. This continues until the pool's spot price converges with the rest of the market, leaving the pool imbalanced with more BTC than crvUSD. Meanwhile, price_scale remains stale because moving concentrated liquidity has conditions that must be met before it can move (see below).

Inside the LEVAMM, the collateral (LP tokens) has lost value but the debt hasn't changed. The DTV has moved above 50%, and the LEVAMM's internal price of LP tokens has dropped below the oracle price. Arbitrageurs see this opportunity: they send crvUSD to the LEVAMM and receive LP tokens at a price below the external market. This trade reduces the LEVAMM's outstanding debt, pushing DTV back toward 50%. Each such trade pays a fee that goes to LPs.

To understand why recovery takes time, you need to know how the Curve pool manages its internal pricing. The pool uses three price references:

• last_prices — The spot rate from the most recent trade, updated on every swap. It reflects where the market is right now but is also manipulable since a single large trade can distort it.

• price_oracle — A smoothed average (EMA) of last_prices. It updates once per block and moves toward last_prices gradually. The smoothing is intentional: it resists manipulation at the cost of being slower.

• price_scale — The internal peg where the pool concentrates its liquidity. Think of it as the pool saying: "I believe the price of BTC is here, so I'll make my best rates available around this range". This is the slowest to move, and the one that matters most for TRD recovery.

For price_scale to move, the pool needs to be able to afford the cost of shifting its liquidity concentration. Specifically, the pool needs to have earned enough profit from trading fees to absorb the cost. price_scale lags behind deliberately; this is a safety mechanism to prevent the pool from being tricked into moving concentrated liquidity too fast.

1. price_scale needs to converge with price_oracle. Every trade helps nudge them closer together, but price_scale moves gradually by design. Making price_scale move fast would make it too easy to manipulate.

2. The gap must exceed a minimum adjustment_step. The pool only adjusts price_scale when the distance between price_oracle and price_scale is large enough for a move. This prevents wasteful, tiny adjustments.

3. The pool must be able to afford the move. Moving price_scale costs the pool value (its virtual_price can drop when liquidity concentration shifts). The pool only allows this if accumulated trading profits can cover the cost. The specific rule: the pool must retain at least half of all profits earned since launch after moving concentrated liquidity.

Until all three conditions are met, price_scale stays where it is. The pool's liquidity remains concentrated at the old price, withdrawals incur slippage through that misaligned liquidity, and TRD persists.

YB: crvUSD-wBTC pool

Recovery is funded by multiple fee sources coming from the very volatility that caused the imbalance. The most volatile days produce the biggest TRD but also earn the most fees.

1. Curve pool trading fees — Every swap through the Curve pool generates fees that increase virtual_price, creating the profit buffer the pool needs to move concentrated liquidity.

2. LEVAMM arbitrage fees — When arbitrageurs trade with the LEVAMM to restore DTV, they pay a fee on each trade. These fees accrue directly to LPs.

3. Interest fee donations. — The LEVAMM charges interest on the borrowed crvUSD. This interest is donated directly into the Curve pool. "Donated" means the interest is added as liquidity, but the resulting LP tokens are not given to anyone. Instead they go into a time-locked buffer that releases gradually. The effect is that the pool's virtual_price increases for existing holders, giving the pool the profit buffer it needs to move price_scale.

During recovery, the protocol waives its admin fee on any value that accrues below the high-water mark. Only profits above the high-water mark have the admin fee applied. This means during the recovery period, a larger share of fees flow to LPs rather than the protocol.

You can watch the redemption PPS converge with the fundamental PPS on the analytics page.

Pangea report
Pangea report on FXSwap

TRD can be amplified when crvUSD deviates from its $1.00 peg. The LP oracle multiplies by the aggregated crvUSD/USD price, and the LEVAMM's value is denominated in crvUSD. If crvUSD trades below $1.00, the LP oracle reports a lower value, widening TRD.

This resolves on its own when crvUSD returns to its $1.00 peg. Because crvUSD has its own stabilization mechanisms (Peg Keepers, Monetary Policy), these deviations tend to be short-lived, but they can temporarily make TRD look worse than the actual pool state warrants.

Yield Basis has pools for different BTC wrappers as well as WETH, but not all pools experience TRD equally.

The WETH pool composition looks much more balanced compared to the BTC wrappers, yet it has the worst TRD. To understand why, we need to look at one of the parameters in Curve pools called A (the amplification coefficient).

A controls how tightly liquidity is concentrated around price_scale. Think of it as a dial between two extremes:

• Turn it all the way up and you get something close to a stableswap, where nearly all liquidity is concentrated around a tight price range. Great rates near the peg, but close to nothing as price moves away.

• Turn it all the way down and you get something close to a Uniswap V2 pool, where liquidity is spread evenly. Less capital efficient but more robust to price movement.

BTC pools use higher A because BTC is less volatile compared to ETH. Tighter concentration means better execution on trades around the current price.

ETH pools use lower A because ETH is more volatile, requiring wider liquidity distribution.

Here is where this connects to TRD:

Moving price_scale to a new price has a cost. When the pool moves concentrated liquidity, it recomputes the pool's invariant at the new price and virtual_price (the protocol's internal measure of value per share) drops. That's why you can see PPS drop.

A high A pool concentrates liquidity more tightly, so the cost of moving concentrated liquidity is more expensive. In the BTC pools where A is high, price_scale takes longer to catch up because the pool needs to accumulate more profit before it can afford to move concentrated liquidity. Meanwhile, it remains profitable to sell BTC into the pool, which is why the balance is skewed.

A low A pool spreads liquidity wider, so moving concentrated liquidity is cheaper. price_scale moves faster, virtual_price adjusts, and TRD shows up immediately in the oracle price. This is why the ETH pool can show worse TRD despite appearing more balanced: the lower A lets price_scale update more quickly, so the LP oracle reflects the current state sooner.

If you withdraw during high TRD, you get less BTC per yb-BTC than you would once the position has fully rebalanced.

When you withdraw, the system removes your proportional share of LP tokens from the LEVAMM, repays the corresponding crvUSD debt to the Curve pool, and returns the remaining asset (BTC) to you. During TRD, the Curve pool is imbalanced and price_scale is stale, so this conversion gives you a worse rate than it would under normal conditions.

Withdrawing during TRD locks in the temporary discount as a real loss. If you wait, the LEVAMM's debt ratio converges back toward 50%, the Curve pool re-balances, and the yb-LP returns to tracking BTC plus accumulated fees.

Your position continues to earn fees during TRD. The volatility and arbitrage activity that created TRD are also creating fees that help fund recovery.

How big can TRD get?
TRD size depends on the magnitude and speed of the price move, the pool's A parameter, and how quickly arbitrageurs step in. Larger, faster moves produce bigger TRD. The analytics page shows current TRD for each pool.

How long does recovery take?
Recovery depends on trading volume and continued volatility. Higher volume generates more fees, which funds faster re-balancing. There is no fixed timeline; it is driven by market activity. In the past we have seen that it can take up to a month to restore TRD.

Can TRD fail to recover?
Yield Basis is designed so that the same volatility creating TRD generates recovery fees. However, in the unlikely event where trading volume dries up entirely (no volume
whatsoever), recovery would slow. The protocol includes an emergency withdrawal mechanism as a safety net if the system enters a critical state.

Do I still earn fees during TRD?
Yes. Your position continues earning Curve pool trading fees, LEVAMM arbitrage fees, and interest donations throughout the TRD period.

What do I get back when I withdraw?
You receive your original asset (e.g., BTC). The system handles the debt repayment internally: it removes LP tokens from the Curve pool, repays the crvUSD debt, and returns the remaining BTC to you.

While TRD can look alarming at first, the protocol is doing exactly what it is designed to do.

Leverage is the tool that eliminates impermanent loss. But leverage also amplifies any short-term fluctuations in the underlying Curve pool's state. The same volatility that creates TRD also generates the fees to close it.

As an LP, withdrawing into the discount turns a temporary situation into a permanent one. The better approach: visit the analytics page, watch the pool composition rebalance, and wait for redemption PPS to converge with fundamental PPS. Once it does, your yb-LP reflects the underlying asset plus all accumulated fees.