YieldBloxPrice

(YBX)

The YBX token serves as the core utility token for the YieldBlox protocol, a decentralized finance (DeFi) application built on the Stellar network. Its primary purposes include enabling decentralized governance, directing the distribution of new YBX issuance, and functioning as a form of collateral within the protocol. Leveraging Stellar's efficient and low-cost infrastructure, YBX underpins the protocol's operations, making it the pioneering DeFi project in that ecosystem.

YBX tokens provide users with several key functionalities. They enable participation in protocol governance, allowing holders to vote on and create proposals. YBX holders can also direct the distribution of new token issuance. Furthermore, YBX acts as collateral within the lending and borrowing mechanisms of the protocol. By escrowing YBX, users acquire veYBX, which grants them enhanced governance power and the potential to earn a share of YBX issuance and protocol fees, incentivizing active engagement and contribution to the network's health.

YBX tokens are distributed through a dual approach. Initially, a portion of YBX was allocated to the YieldBlox DAO, early contributors, for bug bounties, marketing, and to members of the Stellar ecosystem. Following this, daily distribution occurs to active users who lend, borrow, or escrow assets within the protocol. This ongoing distribution mechanism ensures that those contributing to the protocol's liquidity and stability are continuously rewarded. A substantial amount is designated for user distribution over a ten-year period, ensuring long-term incentives for participation.

veYBX, or vote-escrowed YBX, is obtained by locking YBX tokens for a specified period. Its primary function is to empower users with enhanced governance capabilities within the YieldBlox protocol. Holders of veYBX gain the ability to participate in crucial decisions, such as voting on the allocation of YBX incentives to various lending pools. Furthermore, veYBX holders are eligible to earn a share of the protocol's YBX issuance and collected fees, aligning user incentives with the long-term success and growth of the YieldBlox ecosystem.

YieldBlox operates on a decentralized governance model, where the community plays a central role in its evolution and maintenance. Governance is facilitated through the YBX token. Users who participate in the protocol, by actions such as lending or borrowing, receive YBX tokens. These YBX tokens can then be escrowed to obtain veYBX, which grants them the power to create, propose, and vote on various modifications to the protocol. This ensures that updates, parameter changes, and strategic decisions are made collectively by the YBX and veYBX token holders, fostering a community-driven and adaptable ecosystem.

The YBX tokenomics model is structured across five levels, specifically designed to incentivize "growth-positive" actions and foster a thriving ecosystem. It aims to reward user participation in core activities such as lending, borrowing, and escrowing YBX for veYBX. By encouraging these actions, the model seeks to increase protocol usage, enhance liquidity, and improve market dynamics. Furthermore, it aims to strengthen governance engagement by aligning user incentives with the long-term success of the protocol. A unique feature is that escrowed YBX can also function as collateral within the system, further integrating its utility.