📔Glossary

Terminology

Adapter

A smart contract which is connected to both Atomica Liquidation Markets and external pools/ products. An Adapter has an allowance to extract capital from a pool and pay it back with possible revenue on the amount taken out.

Asset Manager

An action party that performs some particular investment strategies to get interest income on DeFi platforms in accordance with the settings approved by DAO.

Base Token Rate

An initial exchange rate for a token of a specific pool. Base Token Rate is set at the pool deployment.

Bidding Strategy

A bidding strategy is a set of decisions, calculations, and steps made by a Keeper Adapter.

Bid (Max) Generator Formula

A Keeper calculation based on current auction and market parameters that would give a maximum bid value as an output for this particular auction for a Keeper to enter a bid.

Bid (Max) Value

The output of the Bid (Max) Generator Formula. A maximum reasonable value for Keeper to bid in accordance with current auction and market conditions.

Collateral Current Price

An actual market value of a single unit of the Maker Vault collateral in the liquidity pool currency equivalent (i.e., DAI for Liquidity Pool accumulated in DAI).

DAO

A group of people (approved Ethereum accounts) who are supposed to vote for or against any change - described in a voting proposal - to the system during the voting.

DAO member

A person (approved Ethereum account) who takes part in DAO.

DeFi platform (or Platform)

An Ethereum protocol that provides decentralized financial services (i.e., token/ asset exchange, collateralized loans, on-chain savings, etc.).

GAS Pool

The Pool that aims to store a reasonable amount of ETH, which can be used to pay for transactional gas spendings performed by the system parties (Adapters, Asset Managers, etc.). A Gas Pool is connected with a Liquidity Pool.

GAS Pool Safe Balance

A reasonable amount of liquidity in form of ETH to support a certain level of operations. Gas Pool Safe Balance is defined as one of the pool settings and is approved by DAO.

GAS Cost

An estimated value used for Bid (Max) Generator Formula calculations. An approximate total cost of gas to be paid by a Keeper for a bidding transaction that impacts (decreases) the maximum affordable value of a collateral to bid for.

Keeper Adapter (Keeper)

A specific smart contract that has an allowance to use Atomica Liquidation Markets capital to make bids, while participating in Maker Vaults collateral liquidation auctions. A Keeper Adapter brings income from liquidations on DeFi Platforms to the Pool.

Atomica Liquidation Markets (the Pool)

A specific smart contract designed to accumulate funds (nominated in DAI) to its further usage in Maker Vaults collateral liquidation auctions by a Keeper.

Liquidity Provider (LPr)

An Ethereum account that contributes a specific amount of asset (in DAI) to the Liquidity Pool in exchange for Liquidity Pool tokens minted at the current Token Rate.

Liquidity Provider Capital

A specific amount of asset provided by Liquidity Providers to the Liquidity Pool in exchange for Pool Tokens.

Minimum Discount

An expected estimated minimum profitability of won lots in collateral liquidation auctions that determines a Bid (Max) Value. This price is an ultimate one that still meets the minimum discount. It is necessary to meet two conditions, so that you can reach this profitability: make a bid for the value not higher than a Bid (Max) Value and win an auction with this bid.

Oracle

A specific on-chain data (i.e., exchange rates, auctions data, etc.) provider with off-chain data for Adapters, Asset Managers, Pools, etc. Some oracles implement a specific logic for a Pool-Adapter pair, some can be generic enough to feed more than such pair with data.

Pool Balance

Amount of asset accumulated in a pool contract. Assets temporarily distributed to other allocations (invested, sent to the Maker auctions) are also taken into account.

Pool Currency

A specific base token a particular liquidity pool can be funded and nominated in. For Atomica Liquidation Markets, Pool Currency is DAI.

Pool Factory

A special Protocol Component that deploys Pool Smart Contracts and Pool Token Contracts. On the deployment of a Pool Smart Contract and a Pool Token Contract, the list of the Pool settings and its values approved by DAO has to be specified.

Pool Income

An additional amount of assets - profit from collateral liquidations, deposit (investment) income, etc. - returned by different types of Adapters together with the assets previously borrowed from the pool.

Pool Token

A particular token minted against an amount of capital added to the pool in accordance with a Token Rate. An ERC20 token unique for each Pool. Each Pool Token has its specific name.

Pool Token Contract

A contract, specific for each Pool, that mints Pool Tokens against Liquidity Provider Capital.

Pool Token Name

Represents a pool name abbreviation, e.g., ACLTMAKER1. A token name is a pool setting approved by DAO.

Protocol Settings

A set of specific parameters and metrics that connect all the protocol components and enable them to work as a whole system (i.e., risk metrics, pricing, limits, token names, etc.).

Protocol User

An external subject that can use protocol functionality to meet its goals (i.e., earn a profit or reach other noticeable results).

Rebalancing (or Investment Strategy)

A defined amount of settings and its values with the set of actions and its execution by Asset Manager in order to provide the maximum possible efficiency to the Pool capital in any market phase.

Risk Oracle

A specific Oracle which main objective is to provide a Keeper Adapter with data to trigger bidding and make the bids effective. In order to do this, an Oracle monitors Flip Auctions to trigger the appropriate Keeper actions. An Oracle also provides a lot exchange value in DAI and lot distribution between exchanges (to sell a lot efficiently), processes withdrawal requests queue, and executes some other necessary functions.

Special-Purpose Pool (SPP)

A SPP can be created to serve the specific functions of Product. The functionality of SPP is custom for a Pool-Adapter pair, but in future some standard templates can be created. Examples of SPPs: a Gas Pool, an Incentive Pool, etc.

Token Rate

A general approach to any pool token rate calculation is in dividing a pool balance by the amount of outstanding pool tokens.

Current Token Rate

Means the share of an actual pool asset balance related to the current amount of all outstanding (minted) tokens of this pool. Current Token Rate equals a Current Pool Balance divided by a current amount of outstanding tokens.

Vault Size

The amount of collateral assets (i.e., ETH) held in the Vault.