Glossary
Terms
Words used precisely throughout this documentation, in the sense given here rather than their looser market meanings.
- Backing
- The USDG a depositor locks alongside their NFT. It sets selection weight and funds the standing bid, and is fixed for the life of the position.
- Standing bid
- The irrevocable price a depositor commits to reacquire their NFT for. A purchaser may accept it instead of keeping the NFT.
- Position
- One locked NFT plus its backing. The unit that is drawn.
- Selection weight
- 1e36 ÷ backing. Inversely proportional, so lighter positions are drawn more often.
- Harmonic mean
- n ÷ Σ(1 ÷ bᵢ). Used instead of the arithmetic mean so one large backing cannot drag the pool price up.
- Surcharge
- The 3% added to the pool price. Its split between protocol and depositors flexes with how long the pool has been quiet.
- Settlement discount
- The 5% withheld when a purchaser accepts the standing bid, which is what makes sell-back 95% of backing.
- Relisting
- Settling a drawn position and atomically creating its replacement, funded by the purchaser's fresh backing, without the NFT passing through a wallet.
- Crown
- A separate reward for the largest deposit, scaling by the square root of value. Built now, disabled in Phase 1.
- Points
- On-chain accrual during Phase 1, weighted by value at risk, redeemed pro-rata against the retroactive allocation at token launch.
- Sticky blocking
- Barring a collection permanently. Allowing is reversible; blocking is not.
- drand
- The distributed randomness beacon draws resolve against. Its round values are unpredictable and verifiable on-chain.