Yellow Treasury Vault
The Yellow Treasury Vault is our treasury entity and is tasked with the following main responsibilities:
- To provide stability for the $YELLOW token through a buy-back mechanism
- Building a diversified currency reserve to resolve disputes between brokers
- Collecting transaction fees from clearing and trading fees
Fee Collection and Buy-Back Mechanismβ
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.
$YELLOW Tokens sent to the Treasury Vault will be used to build a diversified portfolio of tokens and coins. Holding a diversified portfolio reduces market risk while at the same time enabling the vault to have a variety of currencies to settle disputes.
The Treasury Vault can decide to burn $YELLOW under certain conditions to support the valuation of the native Yellow Network token.
*A detailed definition of Yellow Reserve Vault is currently in progress*