Glossary

APR

Annual Percentage Rate is the annualized interest rate without taking the effect of compounding into account.

APY

Annual Percentage Yield is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not precise future results.

BCV

Bond Control Variable is the scaling factor at which bond prices change. A higher BCV means a lower discount for bonders and higher inflation by the protocol. A lower BCV means a higher discount for bonders and lower inflation by the protocol.

DAO

Decentralized Autonomous Organization is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In HunnyDAO the governance token is KISS.

DCV

Deflation Control Variable 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.

HCV

HUG Control Variable is the scaling factor at which HUG is redeemable to LOVE.

Liquidity Bonds

Liquidity bonds are LP token bonds. For example LOVE-BUSD LP bonds.

PCV

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

PoR

Proof of Reserve is the mechanism of strengthening the reserve of HunnyDAO treasury via the sales of bonds. Bonders provide liquidity to the treasury, thereby building its reserve. In return for their service, bonders get paid in LOVE tokens.

Reserve Bonds

Reserve bonds are single asset bonds. They are sometimes referred to as "naked" bonds. Examples are BUSD bonds and BNB bonds.

Reward Rate

Reward rate is the configured percentage of LOVE distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

Reward Yield

Reward yield refers to the actual amount of LOVE received by each staker on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to the fluctuating amounts of LOVE staked.

TVL

Total Value Locked is the dollar amount of all LOVE staked in the protocol. This metric is often used as a growth or health indicator in a DeFi project.

TaaS

Treasury as a Service is the business model of decentralized custody of partnership funds. HunnyDAO is designed for TaaS by selling bonds and absorbing partners' liquidity into its treasury as a result.

Vesting Period

The Vesting Period is a measure of the time required for a bond to be fully redeemed.