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Governance

YieldBasis uses a decentralized governance system where veYB holders can vote on protocol parameters and gauge emissions. This system ensures the protocol evolves according to community preferences.

Proposals​

veYB holders can vote on proposals to update protocol parameters, add new features, approve new gauges, or implement upgrades. Creating proposals requires a minimum of 1 veYB. Users can vote Yes, No, or Abstain on proposals.

  • Minimum participation: 30% of total veYB supply
  • Support threshold: 55% of votes in favor
  • Minimum proposal duration: 604,800 seconds (7 days)
  • Linear decay: Voting power decreases linearly starting at 50% of proposal duration

Voting Power Decay​

Similar to Curve DAO, voting power follows a linear decay mechanism:

  • For the first 50% of the proposal duration, voting power remains full
  • After 50% of the duration, voting power decreases linearly

This decay mechanism encourages early participation and prevents last-minute manipulation.

Voting Power Decay Over Time

Voting Power: 100.0%
DaysVoting Power (%)Decay startsDay 0.0 → 100.0% power

Early Execution​

Proposals can be executed early if the vote outcome is mathematically certain, even before the voting period ends. This happens when:

  • The support threshold (55%) has been reached
  • The minimum participation (30%) has been reached
  • No additional votes could change the outcome

Early execution allows for faster implementation of clearly supported proposals without waiting for the full voting period to end. This feature is enabled during the protocol's early stages but might eventually be turned off.

Gauge Voting​

veYB holders also decide how YB emissions are distributed across liquidity pools using a gauge voting system similar to the one from Curve. Gauges exist individually for each BTC market.

How Gauge Voting Works​

  • Each veYB holder can vote on one or more gauges
  • Votes are weighted by veYB balance
  • Gauges receive emissions proportional to vote share
  • Emission weights update instantly (no epochs)
  • Vote lock: Once you vote for a gauge, you cannot change your vote for that gauge for 10 days

For example:

  • If cbBTC gauge receives 70% of votes, it receives 70% of the emissions
  • If wBTC gauge receives 30% of votes, it receives 30% of the emissions

New gauges must first be approved by governance before being included in the voting schedule. This ensures emissions are only directed toward vetted pools. For a step-by-step guide on how to vote for gauges, see Voting for Gauges.