Glossary

This glossary provides definitions for key terms used throughout the Templar Protocol documentation and smart contracts.

A

APY (Annual Percentage Yield) : The total return on an investment over one year, including compound interest. In Templar, this represents the effective yearly return for suppliers or the cost for borrowers.

Asset Pair : The combination of collateral asset and borrow asset that defines a market (e.g., BTC/USDC means Bitcoin collateral, USDC borrowing).

B

Borrow Asset : The token that users can borrow from the market. Typically a stablecoin like USDC, but can be any supported token.

Borrow Position : A user's borrowing account containing collateral deposits, borrowed amounts, accumulated interest, and current status.

Borrower : A user who deposits collateral and borrows assets from the market, paying interest on the borrowed amount.

C

Collateral Asset : The token deposited by borrowers to secure their loans. Must be worth more than the borrowed amount due to over-collateralization requirements.

Collateralization Ratio (CR) : The ratio of collateral value to borrowed value. A 150% ratio means $150 of collateral backs $100 of debt.

Compounding : The process of automatically reinvesting earned yield to generate additional returns over time.

D

Debt : The total amount owed by a borrower, including principal plus accumulated interest and fees.

F

FMV (Fair Market Value) : The current market price of an asset as determined by oracle price feeds.

G

Gas : The computational cost for executing transactions on the NEAR blockchain.

H

Harvest Yield : The action of claiming accumulated yield from a supply position. Can be withdrawn or compounded.

I

Interest Accumulation : The process of calculating and adding accrued interest to a borrower's total liability.

L

Lending : The general practice of providing assets to borrowers in exchange for interest payments. In Templar, suppliers lend to the market pool.

Liability : The total debt owed by a borrower, including principal, accumulated interest, and fees.

Liquidation : The forced sale of a borrower's collateral when their position becomes undercollateralized or expires.

Liquidator : A third party who performs liquidations by repaying part of a borrower's debt in exchange for discounted collateral.

Liquidator Spread : The discount liquidators receive when purchasing collateral, serving as incentive for providing the liquidation service.

Liquidity : The availability of assets in the market for borrowing or withdrawal. When liquidity is low, withdrawal requests may need to wait in the queue.

Liquidity Pool : The combined supply of assets deposited by all suppliers in a market, available for borrowers to access.

M

Market : A smart contract managing lending and borrowing for a specific asset pair (e.g., BTC/USDC market).

Maximum Usage Ratio : The maximum percentage of supplied assets that can be borrowed from a market, preventing over-utilization and maintaining liquidity reserves.

MCR (Minimum Collateralization Ratio) : The minimum ratio of collateral value to borrowed value required to maintain a position. Different MCR levels trigger maintenance requirements or liquidation.

MCR Liquidation : The minimum collateralization ratio below which a position becomes eligible for liquidation.

MCR Maintenance : The minimum collateralization ratio required for new borrows or collateral withdrawals.

N

NEAR Intents : A NEAR Protocol feature that allows users to express desired outcomes (intents) that can be fulfilled by solvers, enabling more flexible and efficient transaction execution. See the official NEAR Intents documentation.

NEP-141 : The NEAR Protocol standard for fungible tokens, similar to Ethereum's ERC-20. See the official NEP-141 specification.

NEP-245 : The NEAR Protocol standard for multi-token contracts, similar to Ethereum's ERC-1155. See the official NEP-245 specification.

O

Oracle : A service providing real-time price data for assets, essential for calculating collateralization ratios and liquidations.

Origination Fee : A fee charged when creating a new borrow position, can be flat amount or percentage-based.

Over-collateralization : The requirement for borrowers to deposit collateral worth more than the borrowed amount, providing a safety buffer against price volatility.

P

Partial Liquidation : Liquidating only enough collateral to bring a position back to the maintenance MCR, rather than liquidating the entire position.

Principal : The original amount borrowed or supplied, excluding accumulated interest and fees.

Protocol Revenue : Fees collected by the protocol from borrowers and suppliers, distributed to suppliers and other accounts according to configured yield weights.

Pyth Network : A decentralized oracle network providing high-frequency price feeds for various assets.

R

Registry : A smart contract that manages deployment and versioning of market contracts within the Templar Protocol.

Repay : The action of returning borrowed assets plus interest to reduce or eliminate a borrower's debt.

S

Snapshot : A point-in-time record of market state including interest rates, asset amounts, and yield distribution.

Stablecoin : A cryptocurrency designed to maintain stable value, typically pegged to a fiat currency like USD. Commonly used as borrow assets in lending protocols.

Static Yield : A fixed allocation of market revenue to specific accounts, independent of their supply activity. Defined in the market's yield_weights configuration, static yield is distributed proportionally to designated accounts and can be withdrawn using the withdraw_static_yield function.

Supply : The total amount of assets deposited by suppliers that are available for borrowing in a market.

Supplier : A user who deposits assets into the market to earn yield from borrower interest payments.

Supply Withdrawal Fee : A fee charged when suppliers withdraw their assets from the market, configured per market to manage liquidity.

T

Time Chunk : A configurable time period (based on blocks, epochs, or timestamps) that determines when new snapshots are created.

Transfer Call : A token transfer that includes data, allowing the receiving contract to execute logic based on the transfer.

U

Undercollateralized : A borrow position where the collateral value falls below the required minimum ratio, making it eligible for liquidation.

Utilization Rate : The percentage of supplied assets currently borrowed. Calculated as: borrowed_amount / total_supplied_amount.

W

Withdrawal Queue : A first-in-first-out system for processing supply withdrawals when market liquidity is insufficient.

Y

Yield : The return earned by suppliers on their deposited assets, generated from borrower interest payments and fees.