The Principal Tokens represents the deposited token by a user in the protocol. From PTs the protocol generate FYT at a 1:1 ratio at each period start.
The tokens representing the yield generated during a specific period. They are generated at a 1:1 ratio by the principal tokens at each period start. At the end.
Interest bearing tokens are tokens whose balance changes over time due to interest accrual and/or rate change.
In APWine scope, underlying assets are the tokens upon which interest bearing assets are based.
Maturity represents the date at which a future expire.
APY stands for Annual Percentage Yield. It is the actual annual rate of return, taking into account the effect of compound interest.
APR stands for Annual Percentage Rate. It is the actual annual rate of return, NOT taking into account the effect of compound interest.
Automated market makers (AMMs) are part of the decentralized finance (DeFi) ecosystem. They allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the DeFi ecosystem.
A liquidity provider is a user who funds a liquidity pool with crypto assets she owns to facilitate trading on the platform and earn passive income on her deposit.
Tokens that represent the shares of liquidity of a Liquidity provider in an AMM
The APY induced by the spot price of principal token in the AMM
Impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.