๐ Glossary
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Principal Token (PTs)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.
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Future Yield Token (FYTs)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.
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Interest Bearing Token (iBT)Interest bearing tokens are tokens whose balance changes over time due to interest accrual and/or rate change.
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Underlying assetIn APWine scope, underlying assets are the tokens upon which interest bearing assets are based.
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MaturityMaturity represents the date at which a future expire.
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Annual Percentage Yield (APY)APY stands for Annual Percentage Yield. It is the actual annual rate of return, taking into account the effect of compound interest.
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Annual Percentage Rate (APR)APR stands for Annual Percentage Rate. It is the actual annual rate of return, NOT taking into account the effect of compound interest.
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Automated Market Maker (AMM)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.
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Liquidity Provider (LP)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.
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LP TokensTokens that represent the shares of liquidity of a Liquidity provider in an AMM
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Induced APYThe APY induced by the spot price of principal token in the AMM
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Impermanent loss (IL)Impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.