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Index & Glossary
Annual Percentage Rate, is the annualized interest rate without taking the effect of compounding into account.
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.
Bond Control Variable, is the scaling factor at which mint 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.
Treasury as a Service, is the business model of decentralized custody of partnership funds. Top Fi DAO is designed for TaaS by issuing mints and absorbing partners' liquidity into its treasury as a result.
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. In Top Fi DAO the governance tokens are $TOP tokens on Arbitrum.
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.
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 are LP token mints. Examples are Top/USDC LP mints and Top/ETH LP mints.
Protocol Controlled Value, is the amount of funds the collateral pool owns and controls. The more PCV the better for the protocol and its users.
Protocol Owned Liquidity, is the amount of LP the collateral pool owns and controls. The more POL the better for the protocol and its users.
Proof of Reserve, is the mechanism of strengthening the reserve of Top Fi DAO collateral pool via the sales of mints. Bonders provide liquidity to the collateral pool, thereby building its reserve. In return for their service, minters get paid in $TOP.
Reserve mints are single asset mints. They are sometimes referred to as "naked" mints. Examples are USDC mints and ETH mints.
Reward rate is the configured percentage of $TOP distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.
Reward yield refers to the actual amount of $TOP 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 $TOP staked.
Risk Free Value, is the amount of funds the collateral pool guarantees to use for backing $TOP.
Liquidity Provider, is the token received when providing liquidity on designated DEX. For instance LP mints require CLP (CamelotSwap LP) tokens of the Top/USDC pair.
Total Value Locked, is the dollar amount of all $TOP staked in the protocol. This metric is often used as a growth or health indicator in DeFi projects.
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.
Last modified 2mo ago