Glossary

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 bond 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.

Current Backing Value

Current Backing Value, describes the relative fractional value of the ImpDAO treasury to which a single IMP has a claim to. As the treasury generates returns on its assets, backing value will grow from its initial value. Other measures like conducting buybacks when the price of IMP is below the current backing value have a positive effect as well.

DAO

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. At ImpDAO the governance token is IMP, and we expect the voting page to be up as soon as possible, stay tuned - ImpDAO.eth will be ready for you!

DCV

Deflation Control Variable, is the scaling factor at which protocol defined 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.

EVM

Ethereum Virtual Machine is a state machine in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has one and only one canonical state, and the EVM is what defines the rules for computing a new valid state from block to block. Avalanche is an EVM Compatible Network!

Liquidity Bonds

Liquidity bonds are all the bonds that allow users to bond IMP using LP tokens.

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.

Reserve Bonds

Reserve bonds are all the bonds that allow users to MINT IMP using single assets. They are sometimes referred to as "naked" bonds. Examples are DAI bonds.

Reward Rate

Reward rate is the configured percentage of IMP 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 IMP 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 IMP staked.

Backing per IMP

Backing per IMP, is the number of funds the treasury guarantees to use for backing IMP.

LP

Liquidity Provider token, is the token received when providing liquidity on DEXs.

TVL

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