Here is a quick overview of some common terms used in the Malt system. These are all elaborated on in more detail further into the docs.

  • Algorithmic Stablecoin: A coin that attempts to hold a stable value using predefined and automatic algorithmic rules rather than human decision making.

  • Implied Collateral: Malt's innovative capital efficient collateral system.

  • Arbitrage Auction: An auction to allow the market to price the risk on Malt recovering peg when it falls below $1 per Malt.

  • Liquidity Extension: A store of capital that is used during Arbitrage Auctions to ensure sufficient Malt is burned from the supply to offset the risk premium on the Arb Tokens.

  • Swing Trader: The protocol's very own arb bot. It is a gigawhale that is always ready to buy Malt and will aggressively try to profit on the trades.

  • Stabilizer Pod: A group of contracts that are in charge of keeping a particular AMM pool stable and distribute rewards to LPs of that pool.

  • Stabilizer Node: The brains of the stabilization system. This is the contract in charge of making supply adjustment decisions.

  • Recovery Mode: The state a Stabilizer Pod goes into when the pool falls below peg. In this mode buying on the AMM is restricted to funnel capital through the Arbitrage Auctions.

  • Focal Vesting: The scheme Malt uses for vesting. Instead of a fixed vesting period there are instead fixed "Focal Points" and all rewards in a given period vest towards that single focal point. This means vesting on rewards can be anywhere between 24-48 hours.

  • Reinvestoor: That's you, fren

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