Glossary
Protocol-Specific Terms
BT (Bond Token)
ERC-20 zero-coupon bond that redeems 1:1 into the underlying asset at expiry. Traded in the AMM, borrowed/lent in the lending market.
CT (Coupon Token)
ERC-20 token that tracks all interest/yield due on a given BT line. CT holders accrue interest/rewards from the underlying yield.
FW (FiraWrapped)
Yield-bearing wrapper for underlying assets. The base unit of account in Fira markets. Mintable and redeemable frictionlessly.
Technical Terms
LTV (Loan-to-Value)
Ratio of debt to collateral value. UZR uses 88% LTV.
LLTV (Liquidation LTV)
Threshold above which positions become eligible for liquidation.
IRM (Interest Rate Model)
Smart contract that determines borrowing rates. UZR uses a fixed rate IRM at 0.10% APR.
AMM (Automated Market Maker)
Decentralized exchange mechanism used for BT trading in Fira V1.
Maturity
The date at which a BT redeems at par (1:1 with underlying).
Par Value
The face value of a BT at maturity (1 underlying).
Discount
The difference between current BT price and par value. This discount represents the implied fixed rate.
Rehypothecation
Reuse of deposited liquidity in secondary markets (variable-rate vaults).
Health Factor
Metric indicating how close a position is to liquidation.
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