# Glossary 1. Arbitrage: The practice of taking advantage of price differences between markets to make a profit. 2. AMM (Automated Market Maker): A type of decentralized exchange protocol that uses algorithms to price assets. 3. APR (Annual Percentage Rate): The yearly rate of return on an investment, expressed as a percentage. 4. Collateral: Assets held by the protocol to back the value of the stablecoin. 5. Collateral Ratio: The value of collateral compared to the value of the asset it's backing. 6. DAO (Decentralized Autonomous Organization): An organization represented by rules encoded as a computer program that is transparent and controlled by the organization members. 7. DeFi (Decentralized Finance): Financial services and products built on blockchain technology that operate without centralized intermediaries. 8. DEX (Decentralized Exchange): A type of cryptocurrency exchange that operates without a central authority. 9. ERC20: A standard for fungible tokens on EVM blockchains. 10. Floating Pool: In MaltSwap, a pool for assets that can fluctuate in value relative to Malt. 11. Liquidity: The ease with which an asset can be bought or sold without affecting its price. 12. Liquidity Provider (LP): Someone who deposits assets into a liquidity pool to facilitate trading and earn rewards. 13. 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. 14. Oracle: A service that provides external data to a blockchain. 15. Peg: The fixed exchange rate that a stablecoin aims to maintain. 16. Risk Factor: In the Malt system, a measure of how much an asset's value is counted towards collateral. 17. Seigniorage: Profit made by issuing currency, typically the difference between the cost of producing currency and its face value. 18. Stable Pool: In MaltSwap, a pool for assets that are expected to maintain a stable value relative to Malt. 19. Stablecoin: A type of cryptocurrency designed to maintain a stable value relative to a reference asset, often the US dollar. 20. Staking: The act of locking up cryptocurrency holdings to earn rewards or participate in network operations. 21. TVL (Total Value Locked): The total value of cryptocurrency locked in a DeFi protocol. 22. Yield: The earnings generated from an investment, typically expressed as an annual percentage rate. 23. GRN Token: Malt's Grain token, used for fee reduction on MaltSwap and other protocol benefits. 24. Malt: The stablecoin at the center of the Malt Protocol ecosystem. 25. MaltSwap: The decentralized exchange (DEX) that's part of the Malt ecosystem. 26. Profit Distributor: The system in Malt that handles how profit is split between increasing protocol collateral, paying LPs, and other destinations. 27. Reward Throttle: Part of Malt's staking system that manages the APR paid for each pool. 28. Reward Overflow: A reserve of capital in the Malt system used to sustain rewards during periods of low cashflow. 29. Swing Trader: A component in the Malt system that helps absorb price deviations beyond a certain threshold, effectively deepening liquidity in the pools. 30. Hooks: Permissioned functions in MaltSwap that can run additional logic during the DEX lifecycle. 31. Malt Cost Averaging: A planned feature allowing users to use Malt to average into another asset over a specified timeframe. 32. Delegation: A feature in Malt's staking system allowing an account to delegate their rewards from a particular pool to another account. 33. Autocompounder: A potential application of Malt's delegation system that automatically reinvests rewards. 34. Reward Runway: The amount of time the protocol can sustain rewards at the current rate without new cashflow. 35. Cashflow APR: The implied APR from all of Malt's cashflow for a given pool against the total staked value for that pool. 36. Target APR: The APR that the Malt system aims to pay, set by the reward throttle based on historical cashflows. 37. Warmup Period: The time it takes for newly staked GRN tokens to reach their full fee reduction potential. 38. Crypto Index Fund: A concept in Malt where the protocol's collateral roughly tracks an index of the broader crypto market. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.malt.money/more-information/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.