Glossary
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.
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 Bank of CronosDAO the governance token is sBOC.
Liquidity Bonds
Liquidity bonds are LP token bonds i.e. BOC LP bonds.
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.
Rebase
Rebase is a mechanism by which your staked BOC balance increases automatically. When new BOC are minted, a large portion of it goes to the stakers. Because stakers only see staked BOC balance instead of BOC, the protocol utilizes the rebase mechanism to increase the staked BOC balance so that 1 staked BOC is always redeemable for 1 BOC.
Reward Yield
Reward yield refers to the actual amount of BOC 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 BOC staked.
Reward Rate
Reward rate is the configured percentage of BOC distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.
RFV
Risk Free Value, is the amount of funds the treasury guarantees to use for backing BOC.
TVL
Total Value Locked, is the dollar amount of all BOC staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.
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