TL;DR

$ULAB is LayerBank's governance token, leveraging vote escrow tokenomics to reward long-term holders with revenue sharing, governance power, and boosted yields. Stakers convert $ULAB into xULAB, a staked version transferable across multiple chains, allowing seamless participation in LayerBank’s ecosystem. Through xULAB, stakers influence emissions, earn up to 3x APR boosts, and enjoy flexible cross-chain staking and governance capabilities. This model supports sustainable growth, attracts liquidity, and aligns incentives across the platform.

$ULAB: Unlocking the Future of Web3 with Value Creation and Incentive Sharing

In the evolving landscape of Web3, one principle stands out: value creation must be shared fairly among participants in a permissionless environment. Whether through DePIN, AI, Real World Assets (RWA), or Infrastructure, the foundation remains the same—empowering contributors by aligning incentives with growth. LayerBank is built on this ethos, delivering sustainable value for users and investors through $ULAB, a governance token set to fuel the next phase of decentralized finance (DeFi).

$ULAB veTokenomics

$ULAB, the governance token of LayerBank, reshapes user interaction by combining governance power, staking incentives, and multi-chain interoperability. Through innovative vote escrow tokenomics (veTokenomics), $ULAB rewards long-term holders with governance influence and revenue sharing, while supporting the platform’s sustainable growth.

Key to this system is xULAB, a 1:1 representation of staked $ULAB. By partnering with bridge solutions, xULAB will offer seamless cross-chain staking and governance participation, ensuring that LayerBank’s ecosystem remains accessible and scalable as it expands.

Key Benefits for $ULAB Stakers

1. Revenue Sharing: Stakers directly benefit from LayerBank’s revenue streams, aligning with the protocol’s growth over the long term.

2. Boosted Yields: Stakers can increase their market APRs by up to 3x, proportional to their holdings in staked $ULAB.

3. Governance Power: Stakers wield weighted voting influence, directing $ULAB emissions and influencing protocol decisions, including permissionless pooling and platform upgrades.

4. Multi-Chain Flexibility: Through strategic partnerships with bridge solutions, xULAB will be transferable across multiple chains, facilitating seamless staking rewards and governance participation across LayerBank’s expanding ecosystem.

Sustainable Revenue Model and Value Creation

LayerBank’s cross-chain functionality, permissionless lending, and staking mechanisms position it to capture a significant share of DeFi’s largest ecosystems. As LayerBank scales, liquidity providers and stakers benefit from seamless participation in multiple networks, with increased token emissions, higher APRs, and $ULAB DAO governance influence driving overall growth.

• Buyback and Burn for Token Value: 50% of borrowing revenue is allocated to the treasury, with a portion used for $ULAB buybacks and burns, creating deflationary pressure and supporting long-term value.

• Incentivizing Liquidity Growth: As $ULAB value rises, stakers earn higher APRs, attracting more liquidity and increasing TVL across the platform.

• Compounding Rewards: $ULAB rewards have a 90-day vesting period with penalties for early withdrawal, or they can be compounded and restaked to increase earning potential.

• Governance Mechanisms: The gauge voting system allows stakers to control $ULAB emissions, directing rewards to the most liquid and high-performing pools, optimizing platform growth.

Road to 100M…

To visualize this, let’s consider the following: If LayerBank's borrowing amount increases and generates 5% annual revenue, and assuming $100M in total borrowings, the indirect profit allocation for buybacks and burns would amount to $2.5M annually.

When looking at the Price-to-Sales Ratio (PSR), LayerBank's PSR, assuming an FDV of $40M, would reach 16. Compared to Lido at 11.5 and Chainlink at 469.8, this shows that LayerBank has a very healthy ratio.

As organic buying volume increases in the market and the project grows according to LayerBank's roadmap, the value return to $ULAB will dramatically increase, making it a highly successful product.

The Gauge Voting System

$ULAB stakers hold significant governance influence through the gauge voting system, modeled after ve3,3 protocols like Curve. This system allows $ULAB holders to direct token emissions to the most active and liquid pools, optimizing rewards for liquidity providers and maximizing protocol efficiency.

Increasing TVL and Market Liquidity: Concentrating emissions on the most active pools increases liquidity and market activity, driving LayerBank’s overall TVL. This attracts more users, enhances trading volume, and increases revenue generation, strengthening the platform’s growth cycle.

Permissionless Pooling: LayerBank is moving towards permissionless pooling, where market creators can set initial lending and borrowing parameters.

This dynamic enables participants to accumulate more $ULAB for greater voting power over emissions. The competitive landscape may lead to a “$ULAB war,” where liquidity providers compete to gain influence, driving further engagement and liquidity into the platform.

Permissionless Lending Markets: A Two-Tier System

LayerBank’s lending markets will be built on a two-tier structure, dividing markets into primary markets and experimental markets:

• Primary Markets: Trusted, large-cap assets like ETH and USDC, governed by the $ULAB DAO, offering stability and security.

• Experimental Markets: Flexible, permissionless markets that enable teams and communities to launch lending pools for long-tail assets across multiple chains. These markets connect to LayerBank’s primary vaults, combining the security of large-cap assets with innovative lending opportunities.

This modular risk system, inspired by protocols like Kamino and Venus, balances risk and reward by fostering innovation without compromising the security of core assets.

Mitigating Risk While Fostering Innovation

By segregating high-risk experimental markets from core, stable assets, LayerBank ensures robust protection for primary markets while fostering innovation. The governance structure, led by the $ULAB DAO, supports transparent decision-making, reducing centralization risks and promoting a secure ecosystem.

Join LayerBank’s Future

$ULAB is more than just a governance token—it is the foundation of a fair reward system that aligns the interests of users, liquidity providers, and investors. Through governance power, staking rewards, and multi-chain interoperability, $ULAB plays a pivotal role in driving LayerBank’s future growth and evolution.

With the upcoming TGE, LayerBank is preparing to scale its ecosystem and offer unprecedented opportunities to investors and users alike. Stay tuned for more information on how to participate in this groundbreaking DeFi initiative.