Currently, liquidity in one exchange is often confined within its boundaries, making it harder for investors to trade at the best price and causing market inefficiencies. Yellow Network addresses this by uniting all exchanges and market makers in a single network, allowing liquidity to flow freely. So, what is Yellow Network (YELLOW), and what does it do? Let’s dive into the details.

What is Yellow Network (YELLOW)?

Yellow Network’s mission is clear: to fundamentally resolve core issues in crypto trading, such as liquidity fragmentation and counterparty risks. Its vision is to build a more efficient and fully decentralized trading infrastructure using broker networks, enabling both retail and institutional players to trade in a fairer and more transparent market.

Key Features of Yellow Network

Yellow Network stands out with a range of technological innovations:

• Layer-3 Architecture: Enables order books and high-frequency trading to occur instantly, unaffected by on-chain delays or costs.
• Real-Time Cross-Chain Trading: Facilitates instant trading across different blockchains without the need for bridging assets.
• Non-Custodial Security: User funds are never held centrally. Control remains with users via multi-signature smart contracts and their wallets.
• Unified Order Books: Combines liquidity from all connected exchanges into a single pool, ensuring trades at the best price.

YELLOW Roadmap and Future Goals

• 2024 Q1: Launch of Yellow Smart Account
• 2024 Q2: Rollout of Yellow Terminal, Linea Mainnet Integration, Canary trading test environment, Onboarding of Initial Builders
• 2024 Q3: Product launch of Yellow Network Telegram app, Product launch of Yellow Vault, Start of Yellow Locking Campaign Season 1, Start of liquidity building through the locking
• 2024 Q4: Support of non-EVM chains, Distribution of Season 1 rewards, Start of Yellow Locking Campaign Season 2, Adding support of 6 EVM chains, Expansion of Builder Program, Organization of Yellow Network Hackathons, Instant cross-chain trading feature
• 2025 Q1: Expansion and sales of Brokerage Ecosystem, Support of non-EVM chains, Enhancement of Multi-chain abstraction, Cross-chain swap through Account abstraction, Growth of Yellow Network Ambassador Program
• 2025 Q2: Launch of Mainnet, NeoDAX Stable release, Advanced orders, Risk Neutral Broker Dealer market making, Further Expansion of Brokerage Ecosystem, Improvement of Cross-chain Trading Systems

Role of the $YELLOW Token

A project’s lifeblood is its token model, which sustains its ecosystem. Yellow Network’s native utility token, $YELLOW, is central to the network and serves multiple critical functions:

• Total Supply: The $YELLOW token has a fixed total supply of 10 billion. This fixed supply could create deflationary pressure as network usage grows.
• Use Cases:
  • Network Fees: Fees for swaps and trades on the network are paid in $YELLOW.
  • Collateral: Brokers joining the network must lock a certain amount of $YELLOW as collateral to ensure commitment and security.
  • Staking: Liquidity providers can stake $YELLOW in the network’s liquidity pools to earn rewards.

YELLOW Tokenomics

• Community Treasury (30%): Used to incentivize projects (Yellow nodes) joining the network.
• Yellow Treasury (12.5%): Reserved for future expansions.
• Trading Mining Rewards (10%): Distributed as rewards to liquidity providers.
• Growth Hacking Rewards (15%): Allocated to accelerate early user acquisition.
• Founders and Team (10%): Locked (vested) for 5 years.
• Token Sale (20%): Offered for sale with up to 3 years of vesting.
• Liquidity Provision (2.5%): Reserved to ensure token accessibility across markets.

This multifaceted structure ensures $YELLOW token demand grows in proportion to network expansion, integrating token holders into the ecosystem.

Yellow Network (YELLOW) Strategic Partners and Featured Backers

Yellow Network, a next-generation decentralized clearing network for digital assets, has secured $10 million in seed funding led by Ripple Co-Founder and Silicon Valley pioneer Chris Larsen.

This strategic investment elevates Yellow Network’s market valuation to over $200 million, positioning it as a frontrunner in the DeFi trading revolution. Other notable backers include ConsenSys, GSR, NxGen, MV Global, Gate Labs, ZBS Capital, Moonrock Capital, Math, Cobo, NOIA Capital, and LD Capital.

Yellow Network introduces an innovative decentralized clearing protocol to tackle key industry challenges, such as liquidity fragmentation, scalability, and counterparty risks. Built on state channel technology, this chain-agnostic network delivers capital efficiency, reduced latency, and scalability for the rapidly growing digital asset market.

The Team and Vision Behind the Project

Yellow Network is developed under the Layer-3 Foundation, a non-profit organization, emphasizing its commitment to decentralization and community focus.

One of the team’s prominent figures is Alexis Sirkia, the project’s Chairman. A recognized and experienced industry name, Sirkia frequently highlights the project’s vision, stating that Yellow Network’s scale and ambition make it a candidate for one of the most significant network launches since Ethereum’s early days. The team comprises developers and strategists with deep expertise in financial infrastructure and blockchain technology.

Ecosystem Overview

• Yellow SDK: The core toolkit for building Web3 applications across chains with gasless and fully abstracted functionality.
• Yellow.com: A user-friendly interface: a hub for wallet access, token utility, and discovering new applications.
• Yellow.org: The developer community and foundation: grants, documentation, and governance tools reside here.
• NeoDAX: A platform offering institutional-grade trading and brokerage solutions built on Yellow’s infrastructure.
• Yellow Wallet: An embedded, non-custodial wallet: seedless onboarding, gasless usage, and ready-to-use app integration.
• Yellow Pay: A layer for real-time, gasless crypto payments. In short, Web3’s version of Venmo.

Project Progress

• Over 50,000 testnet users

• More than 20 top-tier brokers queued for Yellow integration

• Over 40 white-label exchanges ready to work with Yellow

• Partners: Consensys, ETH Prague, Gitcoin

• Community reach exceeding 100,000

Token Sale Coming Soon!

The project’s token sale is just around the corner. Now is the time to be part of “the next big thing” after Bitcoin. Click here to participate.

Participation Process

Sign Up: Join the waitlist by registering your email address. Click here to sign up.
Eligibility Check
“Great News! You’re eligible and added to the list!”

Official Links

• Yellow Network (YELLOW) Website
• Yellow Network (YELLOW) X (Twitter)
• Yellow Network (YELLOW) Whitepaper

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post What Is Yellow Network (YELLOW)? What Does It Do? appeared first on Coin Engineer.