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Definitions

APR

Annual Percentage Rate, is the annualized interest rate without taking the effect of compounding into account.

APY

Annual Percentage Yield, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

Asset Backed Cryptocurrency

A cryptocurrency backed by and transferable for a real world asset (e.g., gold, dollars, real estate)

Cryptocurrency

Any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions. (https://www.merriam-webster.com/dictionary/cryptocurrency)

DAO

Decentralized Autonomous Organization, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In StandardDAO the governance token is sSDA.

DCV

Deflation Control Variable, is the scaling factor at which protocol defined buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

Liquidity Swaps

Liquidity swaps are LP token swaps. Examples are SDA-ETH LP swaps and SDA-DAI LP swaps.

PCV

Protocol Controlled Value, is the amount of funds the treasury owns and controls. The more PCV the better for the protocol and its users.

POL

Protocol Owned Liquidity, is the amount of LP the treasury owns and controls. The more POL the better for the protocol and its users.

PoR

Proof of Reserve, is the mechanism of strengthening the reserve of StandardDAO treasury via the sales of swaps. Swappers provide liquidity to the treasury, thereby building its reserve. In return for their service, swappers get paid in SDA.

Reserve Swaps

Reserve swaps are single asset swaps. Examples are DAI swaps and PAXG swaps.

Reward Rate

Reward rate is the configured percentage of SDA distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

Reward Yield

Reward yield refers to the actual amount of SDA received by each staker on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to e.g. fluctuating amounts of SDA staked.

Runway

The amount of time the protocol could sustain the current staking reward rate if no new swaps were taken in (i.e., if rewards were paid out through the value of the treasury).

SDA Backing

Is the amount of funds in the treasury backing SDA.

SCV

Swap Control Variable, is the scaling factor at which swap prices change. A higher SCV means a lower discount for swappers and higher inflation by the protocol. A lower SCV means a higher discount for swappers and lower inflation by the protocol.

Standard Asset (SA)

An asset in any industry that incorporates the follow principles: An asset that has proven it is “Too Big to Fail” by showing staying power through bull and bear cycles. Top asset in a given vertical by utility and/or marketcap. Shows consistent growth and adoption over time.

Standard Digital Asset (SDA)

A token backed by a diversified, decentralized treasury of Standard Assets.

TVL

Total Value Locked, is the dollar amount of all SDA staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.