# 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](https://www.investopedia.com/ask/answers/110614/what-difference-between-loan-and-line-credit.asp).

**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.