Trava Lending Pool Glossary

A

APR Annual percentage rate (APR) refers to the yearly interest generated by a sum charged to borrowers or paid to investors.

Available liquidity The amount of a particular cryptocurrency asset that is available to borrow.

B

Borrow The activity of borrowing tokens from the lending pool.

Borrow rate A proportion of the borrowed amount borrowers need to pay the lenders every second.

Borrowers Who borrow digital assets with different interest rates, liquidity mining, and levels of risk.

C

Collateral The cryptocurrency asset used by the borrower serves as a promise to repay the loan.

Contract collector A collector contract is a smart contract that receives a share of the protocol's interest allocated from the reserve factor.

Cross-chain lending A new type of lending that allows users to deposit and borrow digital assets spread across multiple blockchains.

D

Deposit The activity of depositing tokens into the lending pool.

Deposit rate A proportion of the amount lent that lenders receive from the borrowers every second.

H

Health Factor The numeric representation of the safety of deposited assets against the borrowed assets and their underlying value.

I

Interest rate An interest rate is the amount of interest due per period as a proportion of the amount lent, deposited, or borrowed. In the Trava Lending pool, the interest rate is designed to control liquidity risk while also maximizing utilization.

L

Lenders Who play the role of liquidity providers in lending pools in the Trava Ecosystem.

Liquidation penalty A liquidation penalty is a bonus applied to the price of collateral assets purchased by liquidators as part of the liquidation of a loan that has reached the liquidation threshold.

Liquidation Threshold The percentage at which a position is defined as undercollateralized. For example, a Liquidation threshold of 80% means that if the value rises above 80% of the collateral, the position is undercollateralized and could be liquidated.

LTV (Loan-to-Value) A financial term used by lenders to express the ratio of a loan to the value of an asset purchased.

M

Maximum LTV The maximum amount of currency that can be borrowed with specific collateral.

N

NET APY The Net APY shows the APY over all assets deposited and borrowed.

NFT-Collateralization A function that allows Trava Knight NFTs to be used as collateral in the Trava Lending pool.

P

Pool owners (For pool creation) When the Trava Pool Creation is implemented, users may easily and quickly start their own lending businesses as pool owners. In more specific terms, they might construct lending pools with digital assets of varying risk levels, which are now only available in the Trava Ecosystem.

R

Repay loan The activity of paying back money previously borrowed from the lending pool.

Reserve Factor The reserve factor allocates a share of the protocol's interests to a collector contract as a reserve for the ecosystem.

Reserve size The amount of a particular cryptocurrency asset held in the lending pool.

Risk parameters Parameters are set for each asset to avoid the risk and maintain the sustainable development of the lending pool, including LTV, Liquidation Threshold, Reserve factor, etc.

rTRAVA The reward token you receive from borrowing, depositing in the Trava Lending pool, and farming in the Heuristic program (Trava Knight NFT). The $rTRAVA is pegged to the $TRAVA, with a conversion rate of 1:1.

T

Total Borrowed The total amount of a particular asset borrowed in the lending pool.

Total Deposited The total amount of a particular asset deposited in the lending pool.

Transaction fee A transaction fee is paid when a certain amount of cryptocurrency is transferred from one wallet to another.

Trava Finance marketplace A platform that combines the Trava lending pool and multiple user-owned pools for the goals of borrowing and lending assets.

Trava Pool Creation The goal of Trava Finance as allowing users to create and manage their own pools to start a lending business to generate a total decentralized marketplace.

TVL (Total value locked) TVL is the total value held in the Trava Lending pool.

U

User-owned pools The lending pools which are created and managed by users.

Utilization rate Each token in each Pool has a utilization rate at each time, which is defined by the ratio that represents total borrows and represents total liquidity. This ratio regulates how much of a deposited token is used in the market.

W

Withdraw The activity of taking back tokens from the lending pool to users' wallets.