The YB token is the native symbol of the YieldBasis protocol, playing a pivotal role in the incentive system, governance, and distribution of returns. The YB token is used as a reward emission tool for users participating in the system by staking their tokens or providing liquidity, in addition to granting them voting rights in protocol decisions through the veYB model.
The protocol allows users to deposit BTC and receive ybBTC, a token representing a claim on a double-leveraged liquidity position (2x BTC/crvUSD LP). At this point, the system begins borrowing a stablecoin of type crvUSD and depositing it with BTC in the Curve pool, enabling tracking of Bitcoin's price at a 1:1 ratio without any impermanent loss.
The YB token is part of this balanced system, rewarding participants through token emissions and allowing them to receive a share of the trading fees generated by the underlying pool.