# Glossary

<table data-full-width="true"><thead><tr><th>Term</th><th>Definition</th></tr></thead><tbody><tr><td><strong>$PEAS</strong></td><td>The native utility token of Peapods Finance, used for governance, protocol fees, and staking rewards.</td></tr><tr><td><strong>$pTKN</strong></td><td>The wrapped version of a token within Peapods Finance, enabling it to participate in volatility farming and liquidity mechanisms.</td></tr><tr><td><strong>$TKN</strong></td><td>The underlying asset in a Peapods liquidity pool, which can be wrapped into its corresponding pTKN for use in the protocol.</td></tr><tr><td><strong>Arbitrage (Arb)</strong></td><td>A trading strategy that exploits price differences between different markets or liquidity pools to make a profit.</td></tr><tr><td><strong>Beta</strong></td><td>An early stage of a product launch where users test functionality and provide feedback before a full release.</td></tr><tr><td><strong>Borrowing</strong></td><td>The act of taking out an asset (typically stablecoins or paired assets) against collateral to use in trading or liquidity farming.</td></tr><tr><td><strong>CBR (Exchange Rate)</strong></td><td>The exchange rate mechanism used in Peapods to determine the value of Collateral Backing Rate of pTKN:TKN over time.</td></tr><tr><td><strong>CBR APR</strong></td><td>The annualized percentage rate (APR) associated with the CBR mechanism.</td></tr><tr><td><strong>Classic LP</strong></td><td>A traditional liquidity pool where users deposit two assets in equal value to facilitate trading and earn swap fees.</td></tr><tr><td><strong>Fixed Discount</strong></td><td>A discount mechanism where borrowers can acquire assets at a predetermined reduced price.</td></tr><tr><td><strong>Impermanent Loss (IL)</strong></td><td>A temporary loss experienced by liquidity providers when the price of deposited assets changes relative to their initial value.</td></tr><tr><td><strong>Interest Rate</strong></td><td>The cost of borrowing an asset, determined dynamically by supply and demand in the liquidity market.</td></tr><tr><td><strong>Isolated Lending</strong></td><td>A lending model where risk is contained within a specific market or asset pair, preventing liquidity from being affected by external volatility.</td></tr><tr><td><strong>Leveraged Volatility Farming (LVF)</strong></td><td>A farming mechanism that allows users to amplify their exposure to volatility yield by borrowing paired assets without liquidation risk.</td></tr><tr><td><strong>LVF APR</strong></td><td>The annualized percentage rate (APR) for leveraged volatility farming positions, representing the return based on volatility yield and borrowed funds.</td></tr><tr><td><strong>Liquidity Pool (LP Pool)</strong></td><td>A smart contract that holds two assets, enabling decentralized trading and generating fees for liquidity providers.</td></tr><tr><td><strong>Liquidity Provider (LP)</strong></td><td>A user who supplies assets to a liquidity pool in exchange for a share of trading fees and rewards.</td></tr><tr><td><strong>Meta-Vaults</strong></td><td>Smart liquidity vaults that automatically allocate capital across different liquidity pools to optimize returns.</td></tr><tr><td><strong>Proof-of-Demand (POD)</strong></td><td>A mechanism where borrowers create artificial demand for liquidity, increasing utilization rates and attracting external suppliers.</td></tr><tr><td><strong>Security Audits</strong></td><td>Reviews of smart contract code to identify and fix vulnerabilities before deployment.</td></tr><tr><td><strong>Self-Lending PODs (DCLP)</strong></td><td>A borrowing mechanism that allows users to lend to themselves, instantly bootstrapping liquidity without waiting for external suppliers.</td></tr><tr><td><strong>Soft Leverage</strong></td><td>A borrowing structure in LVF where users increase their position size with reduced liquidation risks vs standard leverage markets.</td></tr><tr><td><strong>Stable-Yield Farmers</strong></td><td>Users who supply Paired Asset liquidity in exchange for yield, without taking exposure to price volatility.</td></tr><tr><td><strong>Treasury Accrual</strong></td><td>The process of accumulating protocol revenue to fund operations, buybacks, or incentive programs.</td></tr><tr><td><strong>vlPEAS (Vote-Locked PEAS)</strong></td><td>A governance token that allows holders to participate in liquidity allocation decisions and earn rewards.</td></tr><tr><td><strong>Volatility Farming (VF)</strong></td><td>A strategy where users earn yield based on price fluctuations of assets instead of just price appreciation.</td></tr><tr><td><strong>Volatility Farmers</strong></td><td>Users who borrow liquidity to farm volatility yield, profiting from price swings of an asset.</td></tr></tbody></table>