Amount: The units of collateral (or tokens) a user wishes to mint (burn) at the next rebalancing event.
Base asset: Refers to the underlying asset. Usually a cryptocurrency or stock (like ETH or Tesla) but can be any price feed.
Burn: The act of destroying leveraged tokens in exchange for collateral, reflecting a pool withdrawal.
Collateral: An ERC20 that is used for settling the value transfer between the two sides of a pool. For version 1, all pools will use USDC as collateral.
Current Price: The discrete oracle price at the time the keeper contract is called.
Feed: A price (or other metric) feed from an oracle that is sanitised and is fed into the value transfer formula.
Frontrunning interval: The amount of time before an update interval that someone must commit to minting / burning. At launch, it will be set at 300 seconds.
Holdings: The amount of collateral that is in each side of a pool.
Keeper: A Keeper is an agent that is incentivised to call the smart contract function to rebalance the pools. In a traditional custodial setting, the Keeper may be considered the fund manager that executes Value Transfers. The Keeper has no fund custody, they simply automate Value Transfers.
Last Price: The discrete oracle price at the last rebalance event.
Last Rebalancing event: The most recent rebalancing event.
Long Token: An ERC20 token that represents a certain amount of ownership of the long side's collateral.
Skew: The skew is the difference between the pool holdings in the short and long side of a pool. It is represented as Long Side Collateral divided by the Short Side Collateral.
Minting: The creation of new pool tokens in exchange for collateral.
Pool: A pool is a unique instance of the Perpetual Pool template. It has a unique market, leverage, and settlement quote combination. Every pool has two sides.
Pool Token: A pool token represents a share of a side of a pool. It is a fungible ERC20 token.
Power Leverage: Power leverage is a transfer agreement which responds to a change in the price feed in a leveraged fashion. It structures the payments between the two pools so that there is no chance of bankruptcy such that it dampens extreme gains and losses to keep them under 100% after applying leverage, while at the same time performing almost identical to times leverage.
Rebalancing Event: Smart contract transaction which includes the value transfer between sides of pools, the execution of pending mints and burn, and collection of fees. This occurs every rebalance period.
Rebalance Period: The time between each rebalancing event, which is currently set to 1 hour. The more frequently the pools are rebalanced, the closer the pool token's returns mimic a constantly rebalancing portfolio.
Rebalancing Rate: The rebalancing rate is an (inadvertent) mechanism whereby a skew between the long and short sides of a pool, results in a polarised leverage effect insofar as the leverage multiplier for a side's losses are not the same as the gains. In this sense, the Rebalancing Rate is similar in purpose to a funding rate used in Perpetual Swaps.
Short Token: An ERC20 token that represents a certain amount of ownership of the short side's underlying collateral.
Side: A side is either 'long' or 'short' for a pool.
Last modified 8mo ago