Glossary

Short description's of most important abbreviates and concepts.

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.

MCV / BCV

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

Liquidity Mints

Liquidity mints are LP token mints. Examples are Lendr-DAI LP mints and Lendr-wMatic LP mints.

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.

PoR

Proof of Reserve, is the mechanism of strengthening the reserve of the Lendr treasury via the sales of mints. Minters provide liquidity to the treasury, thereby building its reserve. In return for their service, minters get paid in Lendr.

Reserve Mints

Reserve mints are single asset mints. They are sometimes referred to as "naked" mints. Examples are DAI mints and FRAX mints.

Reward Rate

Reward rate is the configured percentage of Lendr distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

Reward Yield

Reward yield refers to the actual amount of Lendr received by each staker on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to e.g. fluctuating amounts of Lendr staked.

RFV

Risk Free Value, is the amount of funds the treasury guarantees to use for backing Lendr.

SLP

Sushiswap Liquidity Provider, is the token received when providing liquidity on Sushiswap. For instance LP mints require SLP tokens of the Lendr / DAI pair.

TVL

Total Value Locked, is the dollar amount of all Lendr 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. Lendr is designed for TaaS by selling mints and absorbing partners' liquidity into its treasury as a result.

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.