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Glossary

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.

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.

Interest Bearing Token (iBT)#

Interest bearing tokens are tokens whose balance changes over time due to interest accrual and/or rate change.

Underlying asset#

In APWine scope, underlying assets are the tokens upon which interest bearing assets are based.

Maturity#

Maturity represents the date at which a future expire.

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.

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.

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.

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.

LP Tokens#

Tokens that represent the shares of liquidity of a Liquidity provider in an AMM

Induced APY#

The APY induced by the spot price of principal token in the AMM

Impermanent loss (IL)#

Impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.