Glossary
Arbitrage: The practice of taking advantage of price differences between markets to make a profit.
AMM (Automated Market Maker): A type of decentralized exchange protocol that uses algorithms to price assets.
APR (Annual Percentage Rate): The yearly rate of return on an investment, expressed as a percentage.
Collateral: Assets held by the protocol to back the value of the stablecoin.
Collateral Ratio: The value of collateral compared to the value of the asset it's backing.
DAO (Decentralized Autonomous Organization): An organization represented by rules encoded as a computer program that is transparent and controlled by the organization members.
DeFi (Decentralized Finance): Financial services and products built on blockchain technology that operate without centralized intermediaries.
DEX (Decentralized Exchange): A type of cryptocurrency exchange that operates without a central authority.
ERC20: A standard for fungible tokens on EVM blockchains.
Floating Pool: In MaltSwap, a pool for assets that can fluctuate in value relative to Malt.
Liquidity: The ease with which an asset can be bought or sold without affecting its price.
Liquidity Provider (LP): Someone who deposits assets into a liquidity pool to facilitate trading and earn rewards.
MEV (Miner Extractable Value): The profit a miner can make through their ability to arbitrarily include, exclude, or re-order transactions within the blocks they produce.
Oracle: A service that provides external data to a blockchain.
Peg: The fixed exchange rate that a stablecoin aims to maintain.
Risk Factor: In the Malt system, a measure of how much an asset's value is counted towards collateral.
Seigniorage: Profit made by issuing currency, typically the difference between the cost of producing currency and its face value.
Stable Pool: In MaltSwap, a pool for assets that are expected to maintain a stable value relative to Malt.
Stablecoin: A type of cryptocurrency designed to maintain a stable value relative to a reference asset, often the US dollar.
Staking: The act of locking up cryptocurrency holdings to earn rewards or participate in network operations.
TVL (Total Value Locked): The total value of cryptocurrency locked in a DeFi protocol.
Yield: The earnings generated from an investment, typically expressed as an annual percentage rate.
GRN Token: Malt's Grain token, used for fee reduction on MaltSwap and other protocol benefits.
Malt: The stablecoin at the center of the Malt Protocol ecosystem.
MaltSwap: The decentralized exchange (DEX) that's part of the Malt ecosystem.
Profit Distributor: The system in Malt that handles how profit is split between increasing protocol collateral, paying LPs, and other destinations.
Reward Throttle: Part of Malt's staking system that manages the APR paid for each pool.
Reward Overflow: A reserve of capital in the Malt system used to sustain rewards during periods of low cashflow.
Swing Trader: A component in the Malt system that helps absorb price deviations beyond a certain threshold, effectively deepening liquidity in the pools.
Hooks: Permissioned functions in MaltSwap that can run additional logic during the DEX lifecycle.
Malt Cost Averaging: A planned feature allowing users to use Malt to average into another asset over a specified timeframe.
Delegation: A feature in Malt's staking system allowing an account to delegate their rewards from a particular pool to another account.
Autocompounder: A potential application of Malt's delegation system that automatically reinvests rewards.
Reward Runway: The amount of time the protocol can sustain rewards at the current rate without new cashflow.
Cashflow APR: The implied APR from all of Malt's cashflow for a given pool against the total staked value for that pool.
Target APR: The APR that the Malt system aims to pay, set by the reward throttle based on historical cashflows.
Warmup Period: The time it takes for newly staked GRN tokens to reach their full fee reduction potential.
Crypto Index Fund: A concept in Malt where the protocol's collateral roughly tracks an index of the broader crypto market.
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