Frequently Asked Questions
General
What is Yellow Network?
Yellow Network is a decentralised clearing and settlement infrastructure that operates as a Layer-3 overlay on top of existing blockchains. It enables businesses — brokers, exchanges, and application developers — to move digital assets across multiple blockchain networks (Ethereum, Base, Arbitrum, Linea, BNB, and Polygon) through a unified peer-to-peer ledger, without relying on a centralised intermediary. All goods and services are supplied by Layer3 Fintech Ltd.
What is YELLOW?
YELLOW is the native utility token of the Yellow Network, only intended to provide access to the goods and services supplied by Layer3 Fintech Ltd. — including clearing network access, SDK and developer tools, broker registration, node operation, AppRegistry, and dispute resolution.
What contracts are involved?
| Contract | Role |
|---|---|
| YellowToken | ERC-20 token (fixed 10B supply, no mint/burn) |
| NodeRegistry | Node operators post YELLOW as a mandatory functional security deposit |
| AppRegistry | App builders post YELLOW as a service quality guarantee, subject to slashing |
| YellowGovernor | Protocol parameter administration by active node operators |
| TimelockController | Enforces a delay before parameter changes execute |
| Treasury | Holds Layer3 Foundation assets (ETH and ERC-20s) |
NodeRegistry (Node Operators)
How do I register as a node operator?
- Approve the NodeRegistry to spend your YELLOW tokens.
- Call
lock(yourAddress, amount)on the NodeRegistry.
This posts YELLOW as a mandatory functional security deposit required to operate a clearnode on the Yellow Network using Layer3 Fintech Ltd.'s open-source software.
Can I add more tokens to my security deposit?
Yes. Call lock(yourAddress, amount) again while in the Locked state. You cannot top up while in the Unlocking state.
Can I delegate my collateral weight?
Yes. Call delegate(theirAddress) on the NodeRegistry. This delegates your collateral weight for the purpose of protocol parameter administration. You can change your delegate at any time.
How do I withdraw my security deposit?
Two-step process:
unlock() → wait 14 days → withdraw(destination)
- Call
unlock()to start the countdown. - After the period elapses, call
withdraw(destination)to receive your full balance.
Your collateral weight is removed from parameter administration the moment you call unlock().
Can I cancel an unlock?
Yes. Call relock() before withdrawing. Your tokens stay locked and collateral weight is restored.
AppRegistry (App Builders)
How does it differ from NodeRegistry?
Same lock/unlock/withdraw state machine, but no parameter administration weight. AppRegistry is purely for collateral management and slashing. App builders post YELLOW as a service quality guarantee for applications registered on the Yellow Network.
What is slashing?
If an app builder violates protocol rules, an address with ADJUDICATOR_ROLE can call slash(user, amount, recipient, decision) to confiscate part or all of their locked collateral. Slashed tokens are transferred to the specified recipient.
Can I be slashed while unlocking?
Yes. Slashing applies in both Locked and Unlocking states. If your entire balance is slashed, your state resets to Idle.
What is the slash cooldown?
A global rate-limit on slashing. When set (via parameter administration), only one slash can occur per cooldown window. This prevents a rogue adjudicator from draining all users in a single transaction, giving active node operators time to revoke the role.
Protocol Parameter Administration
Who can create a parameter change proposal?
Any active node operator with at least 10 million YELLOW in collateral weight (the default proposal threshold). Holding YELLOW alone does not grant this ability — it requires actively operating clearnode infrastructure.
What does the proposal lifecycle look like?
Propose → Delay (~1 day) → Operator Consensus (~1 week) → Queue → Timelock (~2 days) → Execute
How do operators signal support?
Call castVote(proposalId, support) on the Governor:
0= Against1= For2= Abstain
What is quorum?
The minimum collateral weight required for a proposal to be valid. Calculated as max(4% of total locked collateral, 100M YELLOW). The floor prevents proposals from passing with very few participants when total locked collateral is low.
Can a proposal be cancelled?
- The proposer can cancel while the proposal is Pending.
- The proposal guardian (Foundation multisig) can cancel any proposal as an emergency brake.
Treasury
What can the Treasury hold?
ETH and any ERC-20 token.
How are funds transferred from the Treasury?
Call transfer(token, to, amount) where token is address(0) for ETH or an ERC-20 address.
If the Treasury is owned by the TimelockController, this requires a parameter administration proposal. If owned directly by the Foundation, the owner can call it directly.
Parameters
| Parameter | Default | Changeable via |
|---|---|---|
| Total YELLOW supply | 10,000,000,000 | Fixed (no mint/burn) |
| Proposal threshold | 10,000,000 YELLOW | Parameter administration |
| Proposal delay | ~1 day (7,200 blocks) | Parameter administration |
| Consensus period | ~1 week (50,400 blocks) | Parameter administration |
| Quorum | 4% of locked collateral | Parameter administration |
| Quorum floor | 100,000,000 YELLOW | Parameter administration |
| Deadline extension | ~2 days (14,400 blocks) | Parameter administration |
| NodeRegistry unlock period | 14 days | Immutable (set at deploy) |
| AppRegistry unlock period | 14 days | Immutable (set at deploy) |
| Timelock delay | 2 days | Parameter administration |
| Slash cooldown | 0 (disabled) | Parameter administration |