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Incentive Features Introduction

The youves tracker token templates on youves have different incentive mechanisms to strengthen the peg of the youves tracker token to its reference value. There is an interest rate like feature which is used to move incentives to either the minter or to the holder of the relevant synthetic asset to economically balance the synthetic asset in a non-disruptive manner. User conversion rights exist as an instrument to manage the price tracking more rigorously in situations where the price of the youves tracker token significantly deviates from its reference price. If the price difference to the youves tracker token's reference price is too high, either minters or holders can exercise their conversion right and exchange collateral against youves tracker tokens. The youves tracker tokens will subsequently be burned.

Furthermore, a step in mechanism in the collateral management is designed to keep adequate collateralization ratios in vaults. Finally, the staking pool of the stability mechanism acts as a last line of defense in case the collateral management features cannot keep up with extraordinary events.