Glossary

DCV

Deflation Control Variable (DCV), 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 (EVM), 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.

PCV

Protocol Controlled Value (PCV), 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 (POL), is the amount of LP the treasury owns and controls. The more POL the better for the protocol and its users.

RFV

Risk Free Value (RFV), is the dollar amount of funds the treasury currently holds for each $SPHERE token.

LP

Liquidity Provider (LP), is the token received when providing liquidity on Dex. For instance, LP bonds need LP tokens of the SPHERE-MAI pair.

TVL

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

TaaS

Treasury as a Service (TaaS), is the business model of decentralized custody of partnership funds. Sphere Finance is designed for TaaS by their taxation system and absorbing partners' liquidity into its treasury as a result.

TWAP

Time Weighted Average Price (TWAP), is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.

Quantum Liquidity

Quantum Liquidity is a method of earning artificial volume in a liquidity pool by farming large chunks of the pool while it remains unused.

Quantum Liquidity as a Service (QLaaS)

Quantum Liquidity as a Service refers to the service Sphere Finance offers to projects who wish to use Quantum Liquidity.

Perpetual APY

Perpetual APY is a mechanism made by Sphere Finance where the APY fluctuates based on how the treasury is performing, in a way where the returns from staking tokens is regular regardless of the market.