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 bond $INDs change. A higher BCV means a lower discount for bonders and higher inflation by the protocol. A lower BCV means a higher discount for bonders and lower inflation by the protocol.

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. In IN DAO the governance token is $IND.

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.

Liquidity Bonds

Liquidity bonds are LP token bonds. Examples are IND-USDT LP bonds.

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 Rate

Reward rate is the configured percentage of $IND 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 $IND 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 $IND staked.

RFV

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

TVL

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

TaaS

Treasury as a Service, is the business model of decentralized custody of partnership funds. IN DAO is designed for TaaS by selling bonds and absorbing partners' liquidity into its treasury as a result.

TWAR

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