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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.

Governance Proposals​

veYB holders can vote on proposals to update protocol parameters, add new features, approve new gauges, or implement upgrades.

  • Quorum: 30% of total veYB supply
  • Approval threshold: 51% of votes in favor

Governance proposals are created by the community and executed on-chain after passing the vote.

Gauge Voting​

veYB holders also decide how YB emissions are distributed across liquidity pools using a gauge voting system. Gauges exist for BTC pools with various wrappers (e.g., wBTC, cbBTC), and may expand to other assets like ETH.

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