Seigniorage Protocol Terms

Celestial Finance Terms and Definitions

Celestial Finance is, at it's heart, a Seigniorage Protocol. The following are terms that are used throughout the protocol.

Seigniorage

A Seigniorage protocol is a protocol that mints new tokens when the market dictates that it is profitable to do so. This means that new tokens are minted when the value of those tokens is greater than the cost to mint those tokens. Simply put, tokens are minted when the value of a token is greater than Peg.

Farm

The Farm is the part of a seigniorage protocol’s dAPP where investors stake their liquidity pairs to earn the share token as a reward.

The goal of the Farm is to reward investors that provide liquidity with additional share ownership in the protocol.

Boardroom

The Boardroom is the part of a seigniorage protocol’s dAPP where the share token is staked to earn the peg token as a reward. The Boardroom pays out the peg token when TWAP > 1.01 at each Epoch.

The goal of the Boardroom is to facilitate the growth of the protocol through the gradual release of the peg token into the hands of share holding investors.

Peg

Peg is the state at which the peg token is equal in value to the reference token. For example, with Celestial Finance when 1 Radiance = 1 BUSD.

TWAP

TWAP stands for Time Weighted Average Price. It is a sliding average of the price of an asset over a previous time period. With Celestial Finance, TWAP refers to the price of Radiance in relation to BUSD.

Epoch

An Epoch is a period of time. With seigniorage protocols an Epoch is typically 6 hours. Epochs are used for timing things like reward payouts and locking periods.