Glossory

• Elara Protocol: A DeFi platform aims to transform the $400B+ Ethereum market by redefining ETH and its derivatives.

• ElaraLend: The core lending and borrowing component of the Elara Protocol.

• uETH: A decentralized, over-collateralized ETH-pegged asset, backed by ETH and its derivatives (LSTs/LRTs). It maintains a 1:1 soft peg to ETH while offering enhanced yield opportunities.

• uETH Saving Rate (USR): An incentivized yield mechanism for holding uETH, designed to maintain its stability and encourage adoption.

• Peg Stability Module: Tools used to maintain uETH’s 1:1 soft peg to ETH, including debt ceilings, liquidations, PSM arbitrage, and the saving rate.

• Main Pool: The primary pool in ElaraLend, typically containing major assets like ETH, USDC, and WBTC.

• Satellite Pools: Secondary pools in ElaraLend, often containing Liquid Staking Tokens (LSTs) or Liquid Restaking Tokens (LRTs).

• Cross-Pool Borrowing: The ability to borrow assets from the main pool using collateral in satellite pools.

• Collateral Factor: The maximum percentage of an asset’s value that can be borrowed against.

• Reserve Factor: The percentage of borrower interest that accrues to the protocol’s reserves.

• Close Factor: The maximum percentage of a borrow that can be repaid in a single liquidation transaction.

• Liquidation Incentive: The bonus given to liquidators for performing liquidations.

• API3: The decentralized oracle network used by Elara for price feeds.

• Zircuit L2: The Layer 2 blockchain on which Elara is currently built.

• LST/LRT: Liquid Staking Tokens / Liquid Restaking Tokens, often used as collateral in satellite pools.

• Supply APY: Annual Percentage Yield earned by lenders.

• Borrow APR: Annual Percentage Rate paid by borrowers.

• Utilization Rate: The ratio of borrowed assets to total supplied assets in a pool.

• Net APY: The overall yield for a user, considering both lending and borrowing activities.

• Proxy Contract: A contract that delegates calls to an implementation contract, allowing for upgrades.

• WETH: Wrapped Ether, an ERC20 token representation of ETH.

• Risk Isolation: The design principle in ElaraLend that contains risks within specific pools.

• Kink Point: The utilization rate at which the interest rate model changes slope.

• Liquidation Threshold: The point at which a borrow position becomes eligible for liquidation.