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FAQ

Company​

About Yellow Companies Group​

Yellow is an umbrella brand, representing a conglomerate of fintech and blockchain product companies.

Contributors to this project within the Yellow ecosystem are Openware (technology—NeoDAX™), Assetum (market-making), Yellow Capital (incubates and leads), Attirer (crypto marketing services).

We merge the multi-year crypto software development experience of Openware and Yellow’s success running a crypto exchange. This multi-structural practice allowed us to inspect numerous potential bottlenecks on both sides.

Yellow Network is powered by Openware’s software; NeoDAX™. While NeoDAX™ brokerage software is free, connecting the node to liquidity streams (channels) requires staking the $YELLOW token—starting from 250,000 for 4 channels.

We offer optional enterprise-grade support for node runners which is $240,000 per year.

Moreover, the Openware partner network will ensure the adoption and integration of new and operating CEXs and DEXs to the Yellow Network.

Assetum is a market-making company that would contribute to the project’s liquidity via the widespread network of partnerships. Yellow Connect brings new exciting Blockchain solutions and crypto projects through the Yellow Incubator to ensure their native integration into the ecosystem.

About Openware, Inc.​

Cloud Software Engineering company with experience of over ten years of servicing European retail banks, shifting their focus entirely to the blockchain industry with the release of open-source modular platform NeoDAX™ for building digital asset trading systems. Over the past years, Openware has shipped over 150 trading platforms to their clients.

About Yellow.com, Inc.​

Crypto Market Maker that provides startup seed funding, mentorship, advisory, data analytics, and fintech software solutions. Yellow is also a lifestyle with a vibrant blockchain community through its co-working hub in Chiang Mai (Thailand), conferences, meet-ups, and entertainment for digital nomads.

❓ How many people are 100% dedicated to working on Yellow Network?

All of the team members are dedicated to the Yellow Network. We have been running a 12-week Blockchain Hackademy for four years where students master their knowledge and specialize in blockchain & software development. Today we can grow at a pace of 5 dev/month.

❓ Could you tell us about Yellow Incubator, what do they mainly work on?

Yellow Incubator is a vastly experienced team that advises, develops, and funds blockchain, crypto, DeFi, and NFT projects, providing seed investment, VC, and market making solutions. We finance solid projects that use NeoDAX™, reducing license costs for startups and getting equity. The company also counts Legal and Marketing teams. And we are always busy at our blockchain incubator premises in Chiang Mai, Thailand, known for its welcoming network of blockchain experts, entrepreneurs, and enthusiasts.

Business Model​

❓ What is the expected gross revenue ratio from HFT trading activities vs. retail trading?

Year2022202320242025
Active nodes185385585845
Number of active brokers3777117164
Est. HFT Gross revenue$51M$230M$552M$1,064M
Est. Total Gross revenue$63M$254M$600M$1,157M

❓ How do you plan to increase the number of brokers during the following years?

We currently have a number of brokers in the alpha testing of the network.

Every month, we receive 160 new customer inquiries for creating their brokerage.

Also, we have about 20 partner distributors who have their stream of customers. They can install the appliance that is activated when they stake enough $YELLOW tokens.

❓ How do you plan to share revenues with Yellow network users? Where do the fees go?

To collect fees, you must run a Yellow node and mine trades. You can create liquidity channels and charge for the usage (traffic using it). Your collateral on this state channel is used to connect the network to reach more liquidity, thus, collecting a fee from a volume in it.

Transaction fees are collected from clearing and trading fees and deposited into the Yellow Treasury Vault. The vault implements a buy-back mechanism of the $YELLOW token to stabilize its value through liquidity provision.

❓ What is the Yellow Treasury Vault?

The Yellow Treasury Vault (formerly Yellow Reserve Vault) is our treasury entity with the following main responsibilities:

  1. To provide stability for the $YELLOW token through a buy-back mechanism
  2. Building a diversified currency reserve to resolve disputes between brokers
  3. Collecting transaction fees from clearing and trading fees

The Treasury Vault can decide to burn $YELLOW under certain conditions to support the valuation of the native Yellow Network token.

❓ What is your way of calculating the Projected Market Cap?

Using the NASDAQ algorithm, we calculated it at 20x annual revenues of all connected brokers, it is usual for crypto startups to reach 100x annual revenues.

❓ How does Yellow Network compare to other DeFi projects in terms of market valuation?

Yellow Network provides foundational infrastructure for decentralized finance, positioning us alongside major industry players. Based on the Fully Diluted Valuations (FDV) of comparable projects as of October 3, 2025:

ProjectFDV (Fully Diluted Valuation)
HyperLiquid$50B
Aster$14B
Uniswap$8B
Jupiter$3B
Raydium$1.6B

Yellow Network's unique approach of providing the underlying layer-3 infrastructure rather than operating as a single trading venue positions us to capture value across multiple use cases and applications. Unlike HyperLiquid or AsterDEX which operate as single trading venues, Yellow Network enables rapid development of DEX platforms with lower CAPEX and OPEX.

❓ How is the network Combined Revenue calculated? What are the hypothetical values for trading fees?

The Network Combined Revenue is calculated based on the revenue of all brokers of the network. The trading fees will range from 0.1 to 0.15%.

Tokenomics/Finance​

❓ Have you worked with any Tokenomics advisor? If yes, which one?

Besides our in-house experts, we are delighted to have various reputable Tokenomics Advisors such as Juergen Hoebarth or Juan Otero supporting our project.

❓ Total supply of 10 Billion tokens = hard cap, correct?

Yes, correct.

❓ What benefits do YELLOW token holders get?

  • Ability to stake $YELLOW token to run a node;
  • Ability to stake token for liquidity mining (collecting fees going through the channel);
  • DAO is possible depending on US regulations (DAO risks qualifying the token to security, which we don’t mind, but security token can’t be listed on most CEX, so it's really a gray area these days);
  • Social activity such as influencing articles and projects on yellow.com launchpad;
  • Paying fees for liquidity, and reducing these fees by the number of $YELLOW tokens in the hold.

❓ Do you have plans to move to the DAO model (as a community-driven model)?

Yes. Community funds and 55% of the tokens are DAO-driven.

❓ How does your company treasury work?

The company treasury is created to expand any group-related company, but it will most likely be inter-company loans, as those tokens are on the Seychelles balance sheet.

❓ Trade mining rewards: what happens when the 10% have been distributed? Is it just to boost acquisition and liquidity at the beginning?

Similar to bitcoin rewards, trading mining only brings the fees, but no additional rewards.

❓ What entity will sell the tokens?

Layer-3 Foundation.

Product / Architecture​

❓ What is Yellow Clearnet?

Yellow Clearnet is our virtual ledger layer-3 infrastructure that forms the foundation of the Yellow Network. It is composed of:

  • State-channel smart contracts using nitrolite (a simplified take on the Nitro protocol)
  • Clearnode - a golang microservice that acts as the off-chain service for state-channel ledger operations
  • Clearnodes serve as gateways from blockchain to layer-3, handling account record keeping and blockchain deposits/withdrawals

The layer-3 was launched in 2025 with SDK released to builders and has been used in multiple Hackathons.

❓ What is NeoDAX and how does it relate to Yellow Network?

NeoDAX is the prominent application built on top of the Yellow Clearnet layer-3 infrastructure. It provides broker-to-broker trading venues. The layer-3 virtual ledger allows rapid development of DEX platforms like NeoDAX with lower CAPEX and OPEX, enabling builders to create fast DeFi applications.

  • NeoDAX SPOT release is expected before the end of 2025
  • Q1 2026: NeoDAX will support SPOT trading between brokers
  • Q2 2026: NeoDAX plans to add support for Perpetual contract trading

❓ What other applications are built on Yellow Network's layer-3?

Besides NeoDAX, the Yellow Network ecosystem includes:

  • Watchdogs: Replicate states for participants and call challenges in case of disaster
  • Oracles: Off-chain price feeds and data providers using $YELLOW token subscription model
  • Other high-speed DeFi applications utilizing the virtual ledger

❓ Why did you choose a state channel technology among other scaling solutions? Why not side-chains or rollups?

State channels are faster, not limited to single side-chains; they also enable cross-chain trading. The layer-3 virtual ledger approach remedies issues with interblockchain communications by using state-channel smart contracts deployed on every chain and synchronizing data off-chain using traditional high-speed databases such as Postgres, SQLite, and DHT networks like Kademlia.

This approach avoids the problems of copying state from one chain to another, which generates waste on-chain, increases transaction usage per chain, is very slow (requires blockchain confirmation on both ends), and is complex to scale as a generic solution.

❓ "Liquidity providers take a share of profits from trading fees."—Is everything happening on-chain? How do you manage that with state channels?

Funding, opening state channels is on-chain. Trading is performed off-chain (both local trades on Broker's node and broker-to-broker trades). Brokers deposit collateral and $YELLOW tokens, so they can exchange the liquidity then, and the provider collects the fees.

❓ What types of collateral are required in Yellow Network?

There are two types of collateral:

  1. Access collateral - For accessing the layer-3 ledger layer. Participants lock $YELLOW tokens to gain access to the state channel infrastructure.
  2. Trading collateral - Typically a stablecoin amount locked for a NeoDAX session, either from retail-to-broker or broker-to-broker trading.

All participants must register their public key and lock $YELLOW tokens in the central registry and vault contract.

❓ What is the Participant Registry?

The registry is a reputation database for participants, recording key information such as:

  • Trading volume
  • Disputes lost (recorded on-chain)
  • Amount of capital locked
  • Public key registration
  • Reputation scores

There is a minimum amount required to become a visible licensed broker or application on the network, but no maximum. The more applications are willing to stake, the more it increases trust in their correct behavior.

❓ What Layer-1s are you connected to and planning to connect to?

We plan to connect to every Layer-1,2 bridges, wallets, bank, exchange. Partners are in queue for the software development where our engineer builds the connectors, then we make a joint press release.

❓ How do Finex nodes sync prices? Will there be a price difference between nodes? Do all Finex nodes share the same liquidity depth? Can the Finex node run as a standalone mode?

Broker-to-broker broadcast using a PubSub; a market is a Topic. There can be price differences between nodes. Depending on how many peers this node has, it has a more or less complete Orderbook. (Think torrent discovery of node).

All Finex nodes can show the same depth; how deep they go depends on their state channel collateral. The most advanced state-channel protocols are between NeoDAX nodes and other backend servers, allowing instant, real-time PNL margin confirmation, which provides access to on-chain margin collateral at any given disaster event.

Finex nodes can run stand-alone with non-network orderbooks.

❓ Is the Finex network based on blockchain architecture or other distributed architecture?

Using LibP2P (think ipfs) it is a new network with gateways being state channels Smart-Contracts on each Layer-1,2

❓ If the Finex network crashes, how to ensure the security of users’ assets based on this architecture?

Users’ assets are in the smart contract custody, a crash would not affect them, they could withdraw their funds even if the broker never comes back.

❓ OpenFinance uses Custody to host user assets. If users deposit assets into this contract if the L3 state channel crashes, how can users withdraw their assets?

They can withdraw by calling the method from MetaMask.

❓ Can you elaborate on cross-chain settlements?

Settlements are often performed through withdrawal of funds from Layer-3 to any target blockchain, with the clearnode responsible for settlement. The escrow infrastructure depends on each chain's capacity - they are often simplified state-channels for lightweight ledger operations. In some cases, the escrow mechanism used will be a Hash Timelocked Contract (HTLC).

An "Adjudicator" is a smart contract that collects and releases funds for a state channel; it is possible to design Adjudicators with two or more smart contracts for custody, which means it can open a channel between brokers from different networks.

❓ What custody solutions does Yellow Network recommend?

Brokers are identified by an ECDSA key-pair. They are recommended to use an MPC TSS (Multi-Party Computation Threshold Signature Scheme) custody solution such as the FROST protocol.

A key security principle depends on the diversity of custody solutions and providers used by the brokers to ensure there is no central vulnerability to the network. This distributed approach to custody enhances the overall security and resilience of the Yellow Network.

❓ Can you elaborate on Dispute Resolution?

A dispute occurs when brokers do not agree on the final balance, this is most often due to network issues or malicious broker cases. Yellow Network has implemented a comprehensive dispute resolution system:

Automated State Channel Disputes:

  • State channels have an automated way to challenge a state for unlocking escrowed funds
  • However, this does not cover all possible malicious behavior happening off-chain

Yellow Online Dispute Resolution Center (ODRC): The ODRC handles all manual disputes through auditing logs and quorum vote of appointed anonymous auditors. Any participant can file a dispute against another participant for a filing fee.

An independent arbitration board consults the audit trails available and enforces the outcome of the dispute, which may result in:

  • A reputation fault
  • A token slash (participant collateral can be slashed in case of dispute loss)

Reputation and disputes are recorded on-chain in the participant registry, ensuring transparency and accountability.

❓ How is the challenge/judge mechanism of Yellow Network's state channel designed?

The system includes multiple layers:

  1. Watchdogs: Auditing entities that replicate state from channels using DHT or other fail-over mechanisms, share audit logs, and can call challenges to unlock escrowed funds in the event of a disaster (e.g., a NeoDAX crash/bankruptcy)
  2. Automated challenges: For state channel disputes related to unlocking escrowed funds
  3. ODRC: For manual dispute resolution through arbitration and quorum voting

Traction / Development Stage​

❓ What is the current status of Yellow Network development?

In 2025, we created the virtual ledger layer-3 "Yellow Clearnet":

  • The SDK is available to builders and has been used in multiple Hackathons
  • The layer is composed of state-channels smart-contract nitrolite (a simplified take on nitro) and clearnode, a golang microservice to act as the off-chain service for state-channel ledger operations
  • NeoDAX SPOT release is expected before end of 2025, now built on top of clearnet layer
  • In Q1 2026, NeoDAX is expected to support SPOT trading between brokers
  • In Q2 2026, NeoDAX plans to add support for Perpetual contract trading

❓ How has the blockchain fragmentation issue evolved since the project started?

Since we started this project, many more Layer-1 and Layer-2 blockchains have appeared, and we are now dealing with hundreds of blockchains. The fragmentation is now acute, making our layer-3 virtual ledger solution even more critical for unifying cross-chain liquidity.

❓ Is Yellow.com currently running as a CEX, or has L3(Yellow Network) been implemented?

Yellow.com is running NeoDAX™ V3; it uses our liquidity network v1 called XLN. The V4 update is expected in June-July of 2022.

❓ When I use Yellow.com to deposit ETH, an ETH address is generated on the deposit page. If I deposit ETH to this address, what will happen later? When will the deposit amount appear on the assets page?

We advise you to test it yourself at alpha.yellow.org.

❓ Peatio is a previous generation of CEX software that has not been maintained for 6 years. During your developing process, which features did you keep, which were removed, which were added?

We are the core maintainers of Peatio, which we have updated for the last 4 years (v1,2,3.) Currently, we still maintain v3.1—the architecture has completely changed since the old Peatio from 2015.

References​

[1] T. Close, "Nitro Protocol" https://eprint.iacr.org/2019/219.pdf, 2019.