SBK token

Shbank token

The SBK token plays a central role within the Shbank protocol due to its multiple utilities and incentives for the various stakeholders of Shbank including the users, the capital suppliers for insurance and the convertible stable coin providers.

Vote escrow: veSBK

SBK can be staked in the Shbank protocol for a pre-determined period of time, the duration and the amount of the locked SBK determines the amount of veSBK “Vote escrow tokens” received. veSBK tokens are not transferable and can only be obtained by locking SBK.

veSBK tokens have the following utilities:

1. Earn a share of Shbank fees

2. Participate in the governance votes/proposals/gauges (with a voting power proportional to the amount of veSBK)

3. Earn bribes by lending voting power to the respective gauges

4. Enjoy boosted $SBK rewards on the Shbank products (including the Convertible Vaults)

5. Earn bribes by lending rewards boosts

Where can I get some ?

SBK can be acquired through the following channels:

1. Buy from exchanges

2. Participate in a fund-raise

3. Earn SBK rewards by using the Shbank products (e.g. by depositing in the convertible vaults)

4. Stable coin providers in the convertible vaults can opt to be reimbursed in SBK with a discount

Keep in mind that SBK is not exchangeable in the first phase of Shbank. Thus it can only be acquired by participating in the Convertible Vaults.

Index-like correlation

SBK has a special correlation to the set of underlying tokens with listed convertible vaults on the protocol:

1. Vaults conversions are positively correlated to the vault underlying token

2. Shbank takes a fee on converted tokens earned by the convertible stable coin provider, which is then redistributed to veSBK holders

3. Shbank fees have a positive correlation with SBK buying pressure

This sets an implicit correlation between SBK and each of the underlying tokens of the vaults listed on Shbank. In that sense, SBK can be perceived as a hedged token index of the set of underlying tokens that have a vault with Shbank.

On the other hand, SBK is also affected by the price drop of the underlying tokens of its listed vaults. Indeed, when most of the tokens experience price drops this lowers the probability of vaults conversions without decreasing the protocol spendings in $ and SBK, which lowers the protocol treasury and SBK price. To reduce this effect, mechanisms have been put in place to transfer the risk by relying on external investors and insurance.

Shbank goal is to limit selling pressure for the underlying tokens by incentivizing users to lock their assets, which will also positively impact SBK.

Tokenomics

SBK tokens will not be transferable in the first stages. The goal is to ensure healthy tokenomics for the SBK token and protect the long term orientation of the protocol vision.

At the time of raising funds, the distributed tokens will follow a vesting period before being progressively released to the investors. The team members’ tokens will also have a vesting period to protect the token value.

The protocol's fees will be distributed to veSBK holders according to DAO’s votes and pre-set rules to:

• Incentivize users participation in Shbank products

• Reward token holders and incentivize governance participation

• Protect the protocol treasury and insure a long-term vision