Glossary

P-Token

P-Token is an ERC-20 token anchored to each NFT collection, at the ratio of 1:1000.

ERC-1000

ERC-1000 is a new ERC standard that proposed by Polarise Protocol, the standard seeks to address the issue of liquidity and functionality. It allows NFT/FT flash traded to each phase within the smart contrcat.

TVL

TVL (Total Value Locked) stands for the overall value of crypto assets circulating in the whole Polarise Protocol.

LTV

LTV (Loan-To-Value) is the ratio of the loan amount you can potentially receive to the value of the asset collateralized.

APY

Annual Percentage Yield (APY) is the rate of return you can earn form each of Polarise financial modules.

DeFi

Decentralized Finance, commonly known as DeFi, refers to the blockchain-powered technology that removes centralized intemediaries, such as banks or exchanges, from financial transactions.

Collateral

Collateral is a digital asset(s) of value pledged to secure a loan in Polarise. Collateral reduces the risk for lenders in extreme conditions. E.g. if a borrower defaults on the loan, the lender can seize the collateral to recoup the losses.

Collateral Factor (%)

Collateral Factor is the maximum amount a user can borrow, represented in percentages, based on the total amount of assets supplied.

Reserve Factor

The reserve factor is the protocol's deposit to safeguard the overall sustainability. It derives from protocol's interests and can be used as incentives for governance and risk premium to protect all suppliers.