YBX incentive allocations are set by governance proposals. These proposals are initiated using a
incentiveAllocation operation in the governance smart contract. These governance proposals differ from standard governance proposals in that instead of voting
NO they vote on allocating incentives for lending or borrowing a certain asset. For example, if a user wants more incentives to be allocated to XLM lenders, they will use their sYBX to submit
LENDING_XLM votes. At the end of the voting period, the governance proposal shifts incentive allocation to match the distribution of votes. For example, say USDC and XLM are the only assets supported by the protocol and at the end of the voting period there are 600 votes for
LENDING_XLM 400 votes for
BORROWING_XLM 500 votes for
LENDING_USDC and 500 votes for
BORROWING_USDC. 30% of YBX incentives will be allocated to XLM lenders, 20% will be allocated to XLM borrowers, 25% will be allocated to USDC lenders, and 25% will be allocated USDC borrowers. This creates a strong incentive for users to vote for whatever assets they are currently lending or borrowing so make sure you vote on these proposals!