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Glossary

APY​

The Annual Percentage Yield is the rate of returns an investor gets over one year. Unlike APR (Annual Percentage Rate), it doesn’t take compound interest into account.

Custodial / Non-custodial protocol​

The difference between custodial and non-custodial protocols is the control the protocol has over the keys to assets you own. As for non-custodial protocol, only users can have access to their private keys. Also, the protocol cannot restrict users from withdrawing their funds, as the smart contract which runs it doesn’t need permission to operate and cannot be modified to restrict withdrawals.

Delegators​

These are participants who choose to delegate their SOL token to validators. As a smart contract is used to complete this process the reward from staking is automatically shared with the delegator.

Epoch​

The number of slots, for which a leader schedule is valid. The average time it lasts is 2 days.

Liquidity​

Liquidity stands for the total available of a given asset circulating in a protocol.

Liquidity Mining​

Liquidity mining is a process of distributing tokens between participants who provide liquidities to the protocol. It aims to substitute the cycle of sales with a distribution of those tokens over time.

Liquidity Pool​

A liquidity pool is a pair of tokens locked within a smart contract that can be used for different financial actions like exchange or loans. It allows to swap tokens and at the same time, there is no need for an order book.

Multisig Wallet​

Multisig stands for multiple signatures. It is a technology used in crypto wallets with several layers of controls to make transactions with the wallet. It’s defined by smart contract rules which require approvals from multiple users to complete the transaction.

Stablecoin​

Stablecoin is a general name for cryptocurrencies, the exchange rate of which is adjusted to be as close as it’s possible to the price of fiat currency. For example, USDT, USDC, DAI, BUSD.

Stake account​

Is an account created as proof of funds being staked to a specific validator. The creation of an account happens when a wallet stakes to a validator.

Total Value Locked (TVL)​

TVL measures the total amount of funds there is in the protocol.

Unstake Liquidity​

The number of tokens (SOL) in the Unstake Liquidity Pool is called Unstake Liquidity. This pool allows users to quickly withdraw funds against staking derivatives.

Validators​

Validators are nodes that maintain a network's security by providing validation to the transactions by staking their SOL tokens. In proportion to the total amount of tokens staked, the validator gets compensation aka staking reward. They can stake more tokens if other users have a will to contribute to their node by delegating their SOL in exchange for sharing of reward.