> For the complete documentation index, see [llms.txt](https://nebula-18.gitbook.io/nebula/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nebula-18.gitbook.io/nebula/token/nebula-token-info/token-utility.md).

# 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.

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#### 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.

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#### 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.

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#### 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.