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Yellow Network to Launch Native Token for First Decentralized Clearing Protocol

Yellow Network to Launch Native Token for First Decentralized Clearing Protocol

YellowYellow2025/02/21 15:44
By:Yellow

Yellow Network, a blockchain infrastructure project backed by Ripple co-founder Chris Larsen , announces plans to launch its native token $YELLOW, designed to power a decentralized clearing protocol for digital asset trading. The announcement follows the company's recent $10 million seed funding round.

The protocol leverages state channel technology to enable high-frequency trading across different blockchain networks without traditional bridging risks.

Yellow Network aims to address persistent challenges in digital asset trading, including market fragmentation, counterparty risk, and capital inefficiency.

"The introduction of $YELLOW is a crucial milestone in our mission to democratize access to digital asset trading infrastructure," said Alexis Sirkia, Chairman of Yellow Network. "By implementing a token-driven clearing protocol, we're fundamentally transforming how digital assets are traded and settled across chains."

The launch includes an exclusive liquidity-locking campaign to encourage community participation and ecosystem growth. Early participants can support network development while earning token rewards and incentives.

The protocol's automated settlement system utilizes $YELLOW tokens to reduce counterparty risk through its clearing mechanism. Tokens locked in the Yellow Reserve Vault provide additional security for dispute resolution and network sustainability.

Yellow protocol aims to onboard over 10,000 participants globally by the end of 2025, targeting both retail and institutional traders seeking efficient cross-chain trading solutions.

The network charges clearing fees in $YELLOW tokens, which automatically flow to the Reserve Vault to maintain system security.

According to Alexis Sirkia, the protocol's approach mirrors Bitcoin's foundational principle of trustlessness in financial systems.

While much of the blockchain industry has focused on decentralization through validator networks, Yellow Network's state channel technology eliminates the need for validators entirely by enabling direct peer-to-peer transactions secured by smart contracts, Yellow Network chairman explains.

The network's architecture requires trading parties to lock funds in smart contracts that automatically execute trades once predetermined conditions are met. This system enables instant settlement and real-time profit-and-loss realization while maintaining transparency throughout the trading process, addressing key institutional requirements for secure and efficient digital asset trading.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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