Glossary 📖

APY: Annual Percentage Yield; it 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 precise future results. The reason is that the reward rates could change within the year and that the compounding time is not precise as epoch’s could take less or more time based on how congested the blockchain is.

APR: Annual Percentage Rate; is the annualized interest rate without taking the effect of compounding into account.

Staking: The action of locking up SWIX tokens to receive additional SWIX tokens in return as a reward. The rebasing mechanism of the sSWIX token (staked return token) is at the core of the token reward system. Un-staking sSWIX entitles depositors to receive an equal amount of SWIX tokens.

Rebasing: The process which allows the protocol to mint new SWIX tokens and sell them at a discount for bonds. Bonds are used to sustain the rebasing economics and to add more risk-free assets like ETH and DAI to the SWIX DAO treasury, increasing the intrinsic value which backs each SWIX token.

Bonding: SWIX can be purchased at a discounted rate through the bonding mechanism. Depositing (bonding) ETH, DAI, SWIX/DAI LP or SWIX/ETH LP will award depositors with the discounted SWIX tokens, distributed over a fixed vesting period.

EVM compatible: EVM standing for "Ethereum Virtual Machine" - is the main state and form (to learn more about the EVM, visit: xxx) of the Ethereum blockchain and hence it's scalability solutions (also known as Layer-2 solutions) like the Polygon chain, on which SWIX will be launched initially.

PCV: Protocol Controlled Value, is the amount of funds the treasury owns and controls. The more PCV the better for the protocol and its users.

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.

Reward Yield: It refers to the actual amount of SWIX 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 SWIX staked.

Reward Rate: Reward rate is the configured percentage of $SWIX distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

Risk Free Value (RFV): The amount of funds the treasury guarantees to use for backing $SWIX.

Total Value Locked (TVL): is the dollar amount of all $SWIX staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.