Glossary

Some terms used throughout the documentation may be unfamiliar to some users. Below we list some common terms that will help with your understanding.

Advance on Future Yield: Instant funding is provided against yield-bearing deposits, allowing for maximum capital efficiency.

APY: Annual Percentage Yield, which is the return after a year, which includes compounding interest. Note that this is different from Annual Percentage Rate (APR), which does not take into account compounding effects.

Token Derivative: A token correlated in value to its base token such as wrapped tokens. (eg. ETH, WETH).

Base Token: Tokens that are accepted as collateral in a Savvy CDP.

Boosted Rewards: Secondary form of yield in different tokens from deposited collateral.

Debt: Amount owed to the Savvy Protocol.

Deposit Token: ERC20 that represents what the LGE accepts to buy with (USDC).

Future Yield: Access to additional tangible or intangible assets at some future point.

Loan-To-Value (LTV): Ratio of the value of the loan divided by the value of the collateral backing the loan. Both values must be in the same unit of account. If a collateral has a Loan to Value of 50%, for every 1 USDC of collateral the user will be able to borrow 0.50 svUSDC.

Net-Zero Borrow Cost: The cost to borrow is always offset by the yield harvested on the deposited collateral. Because the Savvy Credit Line is automatically repaid, the condition of net-zero cost of borrowing is created.

Protocol Controlled Value (PCV): PCV is a subset of the concept of TVL, in which a platform outright owns the assets locked into the smart contracts.

Savvy Line of Credit (Savvy Credit Line): A flexible collateralized loan issued in svTokens without interest payments, unlike TradFi credit lines.

Slippage: The price difference between swapped tokens, can vary based on specific pool liquidity, market conditions, and volatility.

Synthetic: Various tokenized derivatives of currencies, assets, and other cryptos.

Savvy Stable Pool: AMMs that balance svTokens paired with other correlated tokens to support liquidity and price stability.

Unit of Account: The currency used to measure the price of an asset.

Yield: A return or gain on an underlying crypto position.

Yield Aggregator (Yield Optimizer): Yield aggregators maximize returns on AMM pools by constantly harvesting rewards and reinvesting them back into the pools. These aggregators earn higher yields, minimize gas fees, and improve user experience.

Yield Token: ERC20 of yield-bearing external strategy.