veYB Token
veYB (vote-escrowed YB) is the vote-escrowed version of YieldBasis's governance token (YB). It provides voting power and protocol revenue sharing based on the amount of YB locked and the duration of the lock. The design is inspired by Curve's veCRV model but optimized for the YieldBasis ecosystem.
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 Duration | veYB Received (per 1 YB) |
|---|---|
| 4 years | 1.00 veYB |
| 2 years | 0.50 veYB |
| 1 year | 0.25 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): 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 only if they are locked for the maximum duration (4 years).
Transfers will fail if the receiving wallet holds an existing veYB position that is not max-locked. Transfers succeed only if the receiving wallet has no veYB or a max-locked veYB position (which will automatically merge).
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.