Glossory

  • Elara Protocol: The overarching decentralized lending platform built on Zircuit L2.

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

  • ElaraVault: An intelligent liquidity management system that optimizes yield across pools.

  • Dynamic Liquidity Balancing (DLB): The key technology used by ElaraVault to optimize fund allocation.

  • 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.

  • Health Factor: A metric representing the safety of a user's position; below 1 triggers liquidation.

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

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

  • Implementation Contract: The contract containing the core logic for ElaraLend or ElaraVault.

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

  • Risk Isolation: The design principle in Elara 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.

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