Glossary

WEB 2.0

The second stage of development of the World Wide Web, characterized especially by the change from static web pages to dynamic or user-generated content and the growth of social media.

WEB 3.0

Web3 is an idea for a new iteration of the World Wide Web based on blockchains, which incorporates concepts including decentralization and token-based economics.

APR

Annual Percentage Rate, is the annualized interest rate without taking the effect of compounding into account.

APY

Annual Percentage Yield, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

BCV

Bond Control Variable, is the scaling factor at which bond prices change. A higher BCV means a lower discount for minters and higher inflation by the protocol. A lower BCV means a higher discount for minters and lower inflation by the protocol.

DAO

Decentralized Autonomous Organization, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token.

DCV

Deflation Control Variable, is the scaling factor at which protocol defined buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

EVM

Ethereum Virtual Machine, is a state machine in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has one and only one canonical state, and the EVM is what defines the rules for computing a new valid state from block to block. Avalanche is an EVM Compatible Netwrok!

PCV

Protocol Controlled Value, is the amount of funds the treasury owns and controls. The more PCV the better for the protocol and its users.

POL

Protocol Owned Liquidity, is the amount of LP the treasury owns and controls. The more POL the better for the protocol and its users.

LP

Liquidity Provider token, is the token received when providing liquidity on DEXs.

TVL

Total Value Locked, is the dollar amount of all currency staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.

TaaS

Treasury as a Service, is the business model of decentralized custody of partnership funds.

TWAP

Time Weighted Average Price, is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.