Crypto Terms

General terms used in crypto.

Liquidity

Liquidity, or liquid assets, are assets that are freely accessible and exchangeable.

Liquidity Pairs – Liquidity Pools – LPs

Liquidity is the pool of tokens that allow for the buying and selling of a token. The more liquidity there is, the more stable the price is because each buy or sell is a smaller relative percentage of the pool. Investors in BRR are rewarded with PRINTER for providing liquidity to the protocol.

Protocol Owned Liquidity – POL

Protocol Owned Liquidity is liquid assets and LPs that the protocol’s treasury owns. The benefit of POL is that it is very unlikely to be sold in large amounts that can lower the price, as can happen with individual investor-owned liquidity. Typically, POL will only be sold through governance action voted on by investors.

Additionally, with POL, the protocol does not have to incentivize investors as much to provide their liquidity, thus reducing the expenses of the protocol.

Treasury

The treasury of a protocol is the wallet that contains the funds to be used for various protocol purposes. The treasury may hold:

• Protocol Owned Liquidity

• Marketing Funds

• Funds to be used for outside investments to benefit the protocol

• Bonding funds

• Funds for buybacks

Treasury funds are controlled through acts of governance dictated by investors in the protocol.

TVL

TVL stands for Total Value Locked. It is the sum of all tokens and LPs staked in a protocol.

Burn

Burning is the act of sending a token to a non-existent wallet, effectively destroying it and removing it from circulation forever.

Governance

Governance is the ability to vote on protocol actions, changes, policies and strategies. Governance is granted to the holders of governance tokens and voting power is weighted by the number of tokens held.