Glossary

A

APY (Annual Percentage Yield) The annualized return from staking, accounting for compound interest.

B

Backing The treasury value divided by total SLOHM supply. The minimum value each SLOHM is worth.

BCV (Bond Control Variable) A parameter that controls how responsive bond discounts are to protocol debt.

Bonding The process of providing assets to the treasury in exchange for discounted SLOHM.

D

Debt Ratio The ratio of outstanding unvested SLOHM to total supply.

E

Epoch A fixed period (~144 blocks / ~1 day) between rebases.

G

gSLOHM Governance SLOHM. Wrapped sSLOHM with constant balance, used for voting.

I

Index A multiplier that increases each rebase, used to calculate sSLOHM balances.

L

LP (Liquidity Provider) Someone who provides liquidity to a trading pool.

M

Multisig A wallet requiring multiple signatures to execute transactions. SLOHM uses 4-of-7.

O

OPNet A consensus layer enabling smart contracts on Bitcoin L1.

OP20 The token standard on OPNet, similar to ERC20.

P

POL (Protocol Owned Liquidity) Liquidity permanently owned by the protocol treasury.

R

Rebase The mechanism by which sSLOHM balances increase each epoch.

RFV (Risk-Free Value) A conservative valuation of LP tokens that avoids circular backing.

Runway How long the protocol can sustain current rewards based on treasury income.

S

SLOHM The base protocol token.

sSLOHM Staked SLOHM. A rebasing token that grows in balance each epoch.

SlowFi The philosophy that Bitcoin's 10-minute blocks create beneficial exit friction.

Staking Locking SLOHM to receive sSLOHM and earn rebase rewards.

T

Treasury The pool of assets backing all SLOHM tokens.

V

Vesting The period during which bonded SLOHM unlocks linearly (~5 days).

(3,3)

The game theory outcome where everyone stakes, maximizing collective benefit.