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Glossary

Jargon
Term
Definition
Arbitrage
The act of achieving a riskless profit
Capital efficiency
The degree to which the capital invested is able to generate income
Collateral
An asset used as a guarantee against insolvency to borrow another one
Collateral amount
The number of tokens posted as collateral
Collateralization ratio
The ratio between the dollar value of the asset posted as collateral and the dollar value of the borrowed asset
Debt amount
The number of borrowed tokens
Hard peg
A mechanism that allows users to restore the peg by exchanging the pegged asset with its underlying backing asset
Flash mint
A token that is minted and repaid in one block
Leverage
A method through which a user manages more money that what initially committed by taking debt
Leverage APR (OSL)
The resulting APR is based on your collateral deposit and target leverage. 
Liquidation price
If the oracle price of the contract reaches below the liquidation price, your position will be liquidated.
LSDs
LSDs (Liquid Staking Derivatives) are tokens issued by liquid staking platforms. They are also known as liquid staking tokens.
Oracle
The party in charge of providing real-time prices of assets sourced from different exchanges
Peg
A rule that imposes the value of an asset to be equal or anchored to the value of another asset
Position
The creation of a debt originated by a borrower minting an asset from a protocol against another asset posted as collateral for the debt
Price impact
Price impact is the difference between the quoted market price and the final price of the trade. This is impacted by the liquidity in the specific trading pair.
Redemption
The act of burning a token to repossess the underlying collateral asset
Soft peg
A mechanism that encourages users to restore the peg through an incentivizing mechanism design
Total cost (OSL)
The total costs for the One-step leverage transaction, including flash mint fee, borrowing fee, swap fee and price impact.
Wrap
The act of creating a new token which holds another token as underlying asset
Stakeholders
Name
What do they do?
Arbitrageurs
They achieve a riskless profit by executing transactions that help restoring the stablecoin peg
Borrowers
They borrow stablecoins made available from the protocol
Liquidators
They repay borrowers’ debt and retain a portion of their collateral
Protocol
It provides users the ability to mint stablecoins against an asset used as collateral
Redeemers
They burn the stablecoins they hold to repossess other borrowers' underlying collateral asset
Repayers
They close their outstanding Position to estinguish their debt and repossess their underlying collateral asset

Term	Definition
Arbitrage	The act of achieving a riskless profit
Capital efficiency	The degree to which the capital invested is able to generate income
Collateral	An asset used as a guarantee against insolvency to borrow another one
Collateral amount	The number of tokens posted as collateral
Collateralization ratio	The ratio between the dollar value of the asset posted as collateral and the dollar value of the borrowed asset
Debt amount	The number of borrowed tokens
Hard peg	A mechanism that allows users to restore the peg by exchanging the pegged asset with its underlying backing asset
Flash mint	A token that is minted and repaid in one block
Leverage	A method through which a user manages more money that what initially committed by taking debt
Leverage APR (OSL)	The resulting APR is based on your collateral deposit and target leverage.
Liquidation price	If the oracle price of the contract reaches below the liquidation price, your position will be liquidated.
LSDs	LSDs (Liquid Staking Derivatives) are tokens issued by liquid staking platforms. They are also known as liquid staking tokens.
Oracle	The party in charge of providing real-time prices of assets sourced from different exchanges
Peg	A rule that imposes the value of an asset to be equal or anchored to the value of another asset
Position	The creation of a debt originated by a borrower minting an asset from a protocol against another asset posted as collateral for the debt
Price impact	Price impact is the difference between the quoted market price and the final price of the trade. This is impacted by the liquidity in the specific trading pair.
Redemption	The act of burning a token to repossess the underlying collateral asset
Soft peg	A mechanism that encourages users to restore the peg through an incentivizing mechanism design
Total cost (OSL)	The total costs for the One-step leverage transaction, including flash mint fee, borrowing fee, swap fee and price impact.
Wrap	The act of creating a new token which holds another token as underlying asset

Name	What do they do?
Arbitrageurs	They achieve a riskless profit by executing transactions that help restoring the stablecoin peg
Borrowers	They borrow stablecoins made available from the protocol
Liquidators	They repay borrowers’ debt and retain a portion of their collateral
Protocol	It provides users the ability to mint stablecoins against an asset used as collateral
Redeemers	They burn the stablecoins they hold to repossess other borrowers' underlying collateral asset
Repayers	They close their outstanding Position to estinguish their debt and repossess their underlying collateral asset

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Last modified 4mo ago