In an effort to pave the way for institutional adoption of digital assets, Yellow Network, a cutting-edge Layer3 blockchain platform, is set to launch its beta testnet. With a focus on revolutionizing finance by addressing the challenges of counterparty risk, fragmented liquidity, and poor user experience, Yellow aims to create a transparent financial system combining the best elements of decentralized finance (DeFi) and traditional finance (TradFi).
Yellow Network has integrated an exclusive incentive program into the beta launch of its testnet. The program selects testers who are eligible to participate in network activities and rewards them for their contributions. Successful applicants, identified through a selection process, will have the opportunity to engage in various activities on the testnet, such as depositing collateral, executing orders, and converting assets. In return for their valuable feedback and bug reporting, these testers will receive rewards in the form of $DUCKIES tokens.
Yellow Network operates as a Layer3 network, utilizing off-chain state channels to enable order book trading, clearing, settlement, and compliance activities on a unified platform. By connecting to multiple exchanges, Yellow ensures shared liquidity and establishes connection points with major blockchains for cross-chain collateral and settlements. One of the key advantages of Yellow’s non-custodial architecture is that user funds are held in secure multi-signature contracts and wallets, enhancing the overall security of the platform.
To mitigate counterparty risk, Yellow Network makes use of ClearSync, a pioneering protocol that verifies the capital adequacy of each party involved in a trade. This verification process guarantees zero counterparty risk for traders, as it ensures that every participant has sufficient capital to fulfill their trades. By employing ClearSync and offering an all-in-one, purpose-built trading protocol, Yellow Network strives to create a transparent and secure financial system that addresses the shortcomings of existing digital asset trading infrastructures.
Yellow Network’s beta testnet will initially launch on Duckies, the platform’s canary network designed for live test deployments. This strategic decision allows Yellow to foster rapid experimental innovation and refine its protocols based on real-world usage before transitioning to the mainnet. The project has already extended invitations to potential testers and will begin evaluating submissions from December 13th.
The closed beta phase will primarily focus on testing Yellow Network’s core features, including collateral deposits, order executions, and asset conversions. Testers will play a crucial role in identifying any issues or bugs that need to be addressed to ensure the stability and functionality of the network. By participating in the closed beta phase, testers will have a firsthand opportunity to shape the future of Yellow Network and contribute to the development of a groundbreaking financial ecosystem.
Following the successful completion of the closed beta, Yellow Network will announce its plans for an open beta before the official launch of the mainnet. This timing coincides well with the increasing interest in digital assets among institutional market participants. According to a recent survey by Coinbase, a leading cryptocurrency exchange, approximately two-thirds of institutional investors holding digital assets are planning to increase their allocations in the coming years. Additionally, around 45% of those not yet invested have expressed their intention to enter the digital asset market. Furthermore, more than half of the respondents expect prices to rise in 2024, highlighting growing optimism and confidence in the future of cryptocurrencies.
Yellow Network’s launch of the beta testnet represents a significant milestone in the journey towards building a more efficient and secure financial trading ecosystem. By addressing the challenges of counterparty risk, fragmented liquidity, and poor user experience, Yellow aims to facilitate institutional adoption of digital assets. With its Layer3 infrastructure, off-chain state channels, and innovative protocols like ClearSync, Yellow Network aims to create a transparent financial system that combines the best aspects of DeFi and TradFi. The beta testnet and the upcoming open beta provide a unique opportunity for testers to actively contribute to the development of a future-ready platform that could reshape the world of financial trading. As the investment appetite for digital assets grows among institutional investors, Yellow Network’s mainnet launch is eagerly anticipated and could mark the beginning of a new era in the world of finance.