Terminology

Pool

Pool is an abbreviation for Token loan pool in Shorter.

Token loan pools are pools of tokens stored in a smart contract, used to facilitate functions such as liquidity provision, and borrowing/lending of tokens in a decentralized way.

Days to Expiration (DTE)

DTE in Shorter is the live period that a pool or related trading is valid. Once succeed, all open positions in matured pools will be put under liquidation instantly and meticulously.

Margin Locked

The (maintenance) margin represents the amount of equity the investor must maintain in the position after the orders have been made to keep the position open. The locked margin exists to protect providers from traders defaulting on their loans.

States

  • Running

  • Liquidating

  • Ended

Trading

Slippage

Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage is most prevalent with larger orders and during periods of higher volatility.

Price Impact

Price impact affects the execution price of a swap similarly but is a result of a different dynamic. When using an automated market maker, the relative value of one asset in terms of the other continuously shifts during the execution of a swap, leaving the final execution price somewhere between where the relative price started - and ended.

As the amount of liquidity available at different price points can vary, the price impact for a given swap size will change relative to the amount of liquidity available at any given point in price space. The greater the liquidity available at a given price, the lower the price impact for a given swap size. The lesser the liquidity available, the higher the price impact.

Interest Rate

Funding/Interest fees is essentially an interest rate paid by traders who are holding positions with leverage. This is to balance out the borrowed funds from other traders.

Farming

Farming, or yield farming, is a practice in the DeFi cryptocurrency world. It is the term that defines the process that stands for obtaining the high yield and a method to earn more cryptocurrency with your cryptocurrency. In addition, it's a chance to obtain extra yields from the protocol's governance token.

Liquidity Pool

A Liquidity pool is a pool of funds locked in a smart contract. Any users (called Liquidity Provider) can add funds into the pools to ensure traders get better prices when swapping.

When providing liquidity, you provide two tokens of equal value into a pool. For example, let say the current value of IPISTR is USD 0.02; and you would like to provide 1 BUSD into the BUSD-IPISTR pool, you'll also need to provide 50 IPISTR as the pair.

Liquidity Provider (LP) tokens are tokens generated to represent the share of each pool the provider owns.

LPs earn trading fees from trades that happen in the pool, proportionate to their pool share.

Liquidation

Auction

A specific data structure is organized in an on-chain way, created from one liquidating position and restricted to open for the Rulers to bid/take the debt within the phases.

Phases

  • Tanto - Phase 1.

  • Katana - Phase 2.

  • Naginata - Phase 3.

States

  • Closing

  • Legacy

  • Closed