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veYB Token

veYB is a vote-escrowed form of YB token, which means locking up YB tokens in the special vote-escrow contract. Locking YB → veYB activates token utility, such as voting power and participation in receiving protocol fees. The design is inspired by Curve's veCRV model but optimized for the YieldBasis ecosystem.

Unlocked YB doesn't have any utility functions and must be locked to activate them.

Why Lock YB?​

Locking YB into veYB provides two main benefits:

  • Governance voting power
    Enables voting on emissions, proposals, and key protocol parameters.

  • Revenue sharing
    Provides a portion of protocol revenue (admin fees), proportional to the veYB balance.

How veYB Works​

When YB tokens are locked, veYB is received based on the lock duration. For example:

Lock DurationveYB Received (per 1 YB)
4 years1.00 veYB
2 years0.50 veYB
1 year0.25 veYB
1 week~0.005 veYB
veYB = YB_amount × (lock_duration / 4_years)

veYB voting power decays linearly over time unless max-locked.

Unlock timing: Unlock times are rounded to the nearest week and occur on Thursdays at 00:00 UTC.

Locking Options​

YieldBasis supports two lock styles:

  • Normal decaying lock: Voting power decreases over time as the lock approaches expiry.
  • Max lock (4 years) - also called Permalock: Maintains full voting power indefinitely. This option eliminates the need for frequent re-locking and maximizes revenue share.

NFT Transfers​

veYB positions are represented as NFTs. These positions can be transferred between wallets, but only if both wallets have YB locked for the maximum duration (4 years).

Due to an implementation error, transfers will fail if the receiving wallet does not have a max-locked position. If a user wants to transfer their max-locked veYB NFT to another address, they would need to max-lock at least 1 $YB there to successfully transfer it. Team and Investors if they claim YB during the cliff period, the veNFT cannot be transferred during this period.

Gauge Voting​

veYB holders can vote on which liquidity pools receive token emissions through the gauge system. Voting weight is proportional to the veYB balance, and votes are applied immediately, with no delay or voting epoch.

This gives active participants control over protocol incentives and liquidity distribution.

Want to understand how veYB fits into the broader system? Check this out!

Note: For details about governance proposals and execution, see the Governance section.