# Token Utility The $NEB token is the core of Nebula’s ecosystem, driving user engagement and enhancing the platform's decentralized features. Below are the key utilities of the $NEB token: #### 1. Governance Participation and Revenue Sharing **Stake $NEB to Participate in Governance**\ Staking $NEB allows users to actively participate in Nebula's decentralized governance process. Stakers gain the ability to vote on key decisions affecting the protocol, including: * Adjusting fee ratios for certain pools. * Supporting new chains and assets as collateral. * Other governance-related proposals and updates. **Earn Revenue from the Treasury**\ By staking $NEB, users are also eligible to receive a share of the protocol’s revenue, which is distributed from the Treasury. This revenue-sharing model rewards active governance participants. *** #### 2. Collateral Utility **Use $NEB as Collateral**\ $NEB tokens can be used as collateral within the Nebula lending protocol, allowing users to borrow assets against their staked $NEB. This integration increases the token’s utility across the platform. **Lower Minimum Collateral Ratio with More $NEB Staked**\ The minimum collateral ratio required for borrowing is dynamically tied to the amount of $NEB staked. The more $NEB tokens a user stakes, the lower the minimum collateral ratio, allowing for more favorable borrowing terms. *** #### 3. Interest Payment Discounts **Pay Interest Using $NEB**\ Borrowers have the option to pay interest on their loans using $NEB tokens. Choosing to pay with $NEB results in a discount on the interest rate, providing users with a cost-saving benefit and encouraging the circulation of the native token within the ecosystem. *** #### 4. Access to Yield Tranching, High-APR Pools, and Social Lending Features **Stake $NEB to Access Unique Feature**\ Certain yield tranching pools or high-APR pools are only available to users who have staked a minimum amount of $NEB. By staking $NEB, users can qualify for these exclusive opportunities, allowing them to maximize their returns.\ In addition to high-yield pools, $NEB holders will gain access to **social lending** features. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://nebula-18.gitbook.io/nebula/token/nebula-token-info/token-utility.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.