Glossary

APR

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

APY

Annual Percentage Yield, 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 so much precise future results.

BCV

Bond Control Variable, is the scaling factor at which mint prices change. A higher BCV means a lower discount for minters and higher inflation by the protocol. A lower BCV means a higher discount for minters and lower inflation by the protocol.

DAO

A Decentralized Autonomous Organization is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In Magnet DAO the governance token is $MAG.

DCV

Deflation Control Variable is the scaling factor at which the protocol defines buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

Liquidity Mints

Liquidity mints are LP tokens used to mint $MAG. Examples are the $MAG-$MIM LP.

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.

PoR

Proof of Reserve, is the mechanism of strengthening the reserve of Magnet DAO treasury via the sales of mints. Minters provide liquidity to the treasury, thereby building its reserve. In return for their service, minters get paid in $MAG.

Reserve Mints

Reserve mints are single asset mints. They are sometimes referred to as "naked" mints. Examples are MIM or AVAX mints. These differ from LP mints.

Reward Rate

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

Reward Yield

Reward yield refers to the actual amount of $MAG 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 $MAG staked.

RFV

Risk-Free Value is the amount of funds the treasury guarantees to use for backing $MAG.

TLP

Trader Joe Liquidity Provider is the token received when providing liquidity on Trader Joe. For instance, LP mints require Trader Joe LP tokens of the $MAG/$MIM pair.

TVL

Total Value Locked is the dollar amount of all $MAG staked in the protocol. This metric is often used as a growth or health indicator in DeFi projects.

TWAP

Time Weighted Average Price, is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.