YB
YB is the token of YieldBasis. veYB holders control protocol governance through Aragon, direct YB emissions via gauge voting, and receive protocol admin fees.
veYB holders control the protocol through Aragon governance. The YB token is non-upgradeable with renounced ownership. Protocol upgrades are controlled by the DAO through MigrationFactoryOwner. The veYB contract owner (_yb.eth) can change transfer clearance rules, but this does not constitute censorship—users remain custodians of their locked YB.
veYB holders vote onchain via Aragon governance DAO. Proposals require 30% participation, 55% support, and a 7-day voting period. Proposals can be executed before the full voting period concludes when mathematical certainty is achieved (thresholds met, remaining votes cannot change outcome). Minimum 1 veYB required to create proposals.
Governance System
Aragon governance DAO with TokenVoting Plugin. veYB implements standard IVotes interface for Aragon compatibility.
DAO-controlled: GaugeController, FeeDistributor, MigrationFactoryOwner (ADMIN immutable = DAO).
EOA-controlled: veYB owner (_yb.eth) can change transfer clearance rules. However, transfer restrictions do not constitute censorship—users remain custodians of their locked YB and can always withdraw after lock expiry.
DAO-Controlled Contracts
GaugeController.owner() = DAO. FeeDistributor.owner() = DAO. MigrationFactoryOwner.ADMIN = DAO (immutable).
veYB Owner (_yb.eth)
Can call set_transfer_clearance_checker() to change veYB transfer rules. This restricts veNFT transfers, NOT custody—users remain owners of their locked YB.
The DAO controls protocol upgrades through MigrationFactoryOwner. This constitutes ownership—the indirection through governance is the standard mechanism for tokenholder control.
Upgrade Path
Factory.set_implementations() requires Factory admin = MigrationFactoryOwner. MigrationFactoryOwner requires ADMIN (immutable) = DAO.
YB token is a non-upgradeable Vyper contract. Ownership has been renounced (owner = 0x0). No proxy pattern. Only GaugeController (set before renouncement) can mint via emit().
Token Ownership
owner() returns 0x0. Token uses standard ERC-20 implementation with renounced ownership at deployment.
1B max supply with programmatic emission. Only GaugeController can mint. Emission rate determined by gauge staking levels: get_adjustment() returns sqrt(staked / totalSupply), so higher LP staking = higher emission rate (up to 100% of max rate).
Emission Mechanism
GaugeController calls YB.emit() with rate_factor based on LP staking levels. No discretionary minting possible.
User exits are permissionless: veYB withdrawal after lock expiry, fee claims. Gauge killing is DAO-controlled and affects emissions, not user funds.
Exit Paths
VotingEscrow.withdraw() permissionless after lock expiry. FeeDistributor.claim() has no admin check.
No blacklist, freeze, or seizure functions in YB token. The veYB transfer clearance checker can restrict veNFT transfers, but this does not censor the underlying YB token—users remain custodians and can withdraw after lock expiry.
veYB holders receive protocol admin fees (a subset of protocol revenue) via FeeDistributor. Fees originate from LT (Liquidity Token) vault admin fees, distributed weekly in yb-LP tokens. DAO controls fee direction via MigrationFactoryOwner, and gauge voting directs YB emissions. The Ecosystem Reserve is controlled by an EOA, not the DAO.
FeeDistributor is actively distributing yb-cbBTC, yb-WBTC, yb-tBTC, and yb-WETH LP tokens to veYB holders.
Important distinction: Protocol revenue = LP fees + position rebalancing expenses. What veYB holders receive is the protocol admin fee (admin_fee)—a subset of protocol revenue, not the total.
Fee flow: LT vaults accrue admin fees → anyone calls withdraw_admin_fees() → mints LT to fee_receiver (FeeDistributor) → fill_epochs() distributes over 4 weeks → veYB holders claim pro-rata.
Data source: ValueVerse
Fee Flow
Admin fees from LT vaults flow to FeeDistributor via Factory.fee_receiver. Distribution is automatic and weekly over 4 epochs.
The Ecosystem Reserve is a VestingEscrow controlled by an EOA, not the DAO. This is the largest pool of discretionary YB outside the vesting contracts. The DAO holds a small amount of YB directly.
Ecosystem Reserve
Ecosystem Reserve is a VestingEscrow controlled by an EOA, not the DAO.
veYB holders control both the direction of automated value flows and emission routing:
Fee direction: DAO controls Factory.fee_receiver via MigrationFactoryOwner, determining where admin fees are routed.
Gauge voting = fee control by veYB: veYB holders vote on gauge weights. Higher weight = more YB emissions to that pool's stakers, incentivizing LP staking which generates the admin fees distributed back to veYB holders. 10-day vote lock prevents manipulation.
Fee Flow Direction
DAO controls Factory.fee_receiver via MigrationFactoryOwner.set_fee_receiver(). This determines where admin fees are routed.
Gauge Voting
veYB holders vote on gauge weights to direct YB emissions. This incentivizes LP staking, generating admin fees that flow back to veYB holders.
Aragon has not been able to verify whether YieldBasis AG (operating entity) provides any offchain value to YB token holders. No evidence of equity linkage, offchain revenue sharing, or legal commitments to tokenholders.
All core contracts are verified on Etherscan with matching GitHub source (Vyper 0.4.3). Protocol has undergone 6 independent security audits (Statemind, Chainsecurity, Quantstamp, Mixbytes, Electisec, Pashov).
YB token is verified on Etherscan (Vyper 0.4.3, AGPL v3.0 license). Source code available on GitHub with matching bytecode.
All core contracts (Factory, veYB, GaugeController, FeeDistributor) are verified on Etherscan. 6 independent security audits completed between March-August 2025.
Verification and Audits
Audited by Statemind (Feb-May 2025), Chainsecurity (Jul 2025), Quantstamp (Apr 2025), Mixbytes (Aug 2025), Electisec (Aug 2025), and Pashov (Mar-Apr 2025).
~77M YB locked as veYB (~10% of minted supply). Team (25%) + Investors (12.1%) have 24-month vesting with a 6-month cliff ending March 2026, after which 25% unlocks and the remaining 75% vests linearly over 18 months.
~77M veYB locked from ~722M minted YB (~10% participation). Post-cliff, Team (250M) + Investors (121M) = 371M YB (37%) could potentially influence governance if coordinated, given low current veYB participation.
veYB Supply
veYB supply ~77M tokens locked. Low participation rate means large token holders have outsized influence.
24-month vesting with 6-month cliff ending ~March 15, 2026.
During cliff: Cannot sell, but can lock into veYB. ~35M YB was locked by team and investors during the cliff, choosing protocol fees over liquidity.
At cliff end: 25% unlocks (6/24 months).
Post-cliff: Remaining 75% vests linearly over 18 months until September 2027.
Affected: Team (250M) + Investors (121M) = 371M YB (37% of max supply). Tokens release gradually—they cannot be instantly used to influence governance.
Vesting Schedule
Start: Sept 15, 2025. Cliff: 6 months = March 15, 2026 (25% unlocks). Linear vesting: 18 months post-cliff (75% remaining). Full vest: Sept 15, 2027.
Aragon has not been able to verify trademark ownership. Aragon has not been able to identify published terms of service or a contracting entity for the primary distribution channels. DAO contracts use AGPL v3.0 (open source), but Factory uses proprietary license.
Aragon has not been able to verify trademark ownership.
Aragon has not been able to identify published terms of service or a contracting entity for the primary distribution channels.
Mixed licensing: YB.vy, VotingEscrow.vy, GaugeController.vy use AGPL v3.0 (open source). Factory.vy uses 'Copyright (c) 2025' (proprietary).
License Analysis
DAO contracts (YB, veYB, GaugeController, FeeDistributor): AGPL v3.0. Factory, MigrationFactoryOwner: 'Copyright (c) 2025' (proprietary).
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