Duckies, the canary network for

Duckies is Yellow’s Canary Network to test the innovations of the Network in a real-world environment, including the latest versions of smart contracts and software components. Yellow Network is designed to solve the problems of market and liquidity fragmentation, lack of decentralization and lack of regulatory frameworks. The decentralized model that Yellow is envisions is one in which businesses work together, utilizing a shared backbone for liquidity, similar to the way thousands of internet service providers and network firms are interconnected and regulated in their respective countries.

To understand Yellow Network and its moving parts, it is important to get a high-level understanding of what is part of Yellow Network and what is not. We can best do this by differentiating three different layers of protocols:

Blockchain layer protocol: This is where the state channels smart clearing protocol called ClearSync resides, responsible for the opening, monitoring, and closing of state channels between trading partners. This happens through the deposition and removal of collateral that serves as mutual protection in a trading relationship. While the collateral resides on the Ethereum blockchain, trading partners can trade any tokenized asset across various different blockchains.

Margin call protocol: This is specific to Yellow Network. The protocol is responsible for updating the collateral state residing in the state channels agreed between trading partners through an off-chain RPC protocol.

Trading protocol: This protocol is not specific to Yellow Network and is proprietary software. It can be FIX, Rest-JSON, Binance API, Bitfinex API, or any banking protocol for that matter.