Glossary

A

APR (Annual Percentage Rate) The simple yearly interest rate without compounding. In DeFi, most protocols show APY instead.

APY (Annual Percentage Yield) The yearly interest rate including the effect of compounding. Block Street compounds interest continuously with each block.

Audit Security review of smart contracts by specialized firms to identify vulnerabilities before deployment.

B

Blockchain Networks Block Street operates across multiple blockchain networks, each offering different benefits for users.

Borrow APY The annual interest rate borrowers pay on their loans, variable based on market utilization.

Borrowing Power The maximum amount you can borrow based on your supplied collateral and their collateral factors.

BToken Receipt tokens received when supplying assets to Block Street (e.g., bUSDT, bTSLA). These tokens automatically accrue interest.

C

Close Factor The maximum percentage of a loan that can be repaid in a single liquidation, configurable between 5% and 90%.

Collateral Assets supplied to the protocol that secure your borrowing positions.

Collateral Factor The percentage of supplied value that counts toward borrowing power. For example, TSLA has a 75% collateral factor.

Compound Protocol The lending protocol that inspired Block Street's architecture, pioneering the pooled lending model.

D

DeFi (Decentralized Finance) Financial services built on blockchain technology without traditional intermediaries.

DEX (Decentralized Exchange) Automated trading protocols like PancakeSwap where assets can be swapped without intermediaries.

E

Exchange Rate The conversion rate between BTokens and their underlying assets, which increases as interest accrues.

G

Gas Fees Transaction costs paid to blockchain validators, varying by network.

Governance The process by which protocol parameters and upgrades are decided by token holders.

H

Health Factor A measure of loan safety. Above 1.0 means safe from liquidation; below 1.0 triggers liquidation.

Hybrid Liquidation Engine Block Street's dual-path liquidation system using both DEX and offchain broker networks.

I

Interest Rate Model The algorithm that determines supply and borrow rates based on market utilization.

J

Jump Rate Model An interest rate model with a sharp increase at high utilization to maintain liquidity.

K

Keeper Automated bots that perform protocol maintenance tasks like price updates and liquidations.

L

Liquidation The process of selling collateral to repay an under-collateralized loan.

Liquidation Incentive The configurable bonus liquidators receive for repaying under-collateralized positions.

Liquidation Threshold The collateral ratio at which a position becomes eligible for liquidation.

Liquidity Available assets in the protocol that can be borrowed or withdrawn.

LTV (Loan-to-Value) The ratio of borrowed amount to collateral value.

M

Market A lending/borrowing pool for a specific asset on Block Street.

MEV (Maximal Extractable Value) Profit opportunities from transaction ordering, relevant for liquidations.

Multisig A wallet requiring multiple signatures for transactions, used for protocol security.

O

Oracle External data providers (Chainlink, Pyth) that supply asset prices to the protocol.

Over-Collateralized Requiring collateral worth more than the borrowed amount to secure loans.

P

Price Feed Real-time asset price data from oracles used for collateral valuations.

Protocol Fee The configurable share of interest spread that goes to Block Street reserves.

R

Reserve Factor The percentage of interest that goes to protocol reserves rather than suppliers.

Risk Parameters Settings like collateral factors and liquidation thresholds that manage protocol risk.

S

Slippage Price difference between expected and executed trades during liquidations.

Smart Contract Self-executing code on the blockchain that powers Block Street's operations.

Supply APY The annual interest rate earned by suppliers, variable based on utilization.

T

Timelock A delay mechanism for admin changes, providing time for users to react.

Tokenized Stocks Blockchain representations of traditional equities that can be used in DeFi.

TVL (Total Value Locked) The total value of all assets supplied to the protocol.

TWAP (Time-Weighted Average Price) An average price over time used for oracle price smoothing.

U

Underlying Asset The actual token supplied to Block Street, as opposed to the BToken received.

Utilization Rate The percentage of supplied assets currently borrowed, key driver of interest rates.

V

Variable Rate Interest rates that change based on market conditions, as opposed to fixed rates.

Volatility Price fluctuation of assets, important for liquidation risk.

W

Wallet Software (MetaMask, Trust Wallet) or hardware device for managing blockchain assets.

Web3 The decentralized internet built on blockchain technology.

Y

Yield Returns earned from supplying assets, expressed as APY.

Yield Farming Strategy of maximizing returns by moving assets between different DeFi protocols.

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