Glossary

• APR

Annual Percentage Rate, is the annualized interest rate without taking the effect of compounding into account.

• APY

Annual Percentage Yield, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

• BCV

Bargain Control Variable, is the scaling factor at which Bargain APD change. A higher BCV means a lower discount for Bargain purchasers and higher inflation by the protocol. A lower BCV means a higher discount for Bargain purchasers and lower inflation by the protocol.

• DAO

Decentralized Autonomous Organization, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In ApeParkDAO the governance token is APD.

• DCV

Deflation Control Variable, is the scaling factor at which protocol defined buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

• Liquidity Bargain

Liquidity Bargains are LP token Bargains. Examples are APD-USDT LP Bargains.

• PCV

Protocol Controlled Value, is the amount of funds the Cave owns and controls. The more PCV the better for the protocol and its users.

• POL

Protocol Owned Liquidity, is the amount of LP the Cave owns and controls. The more POL the better for the protocol and its users.

• Reward Rate

Reward rate is the configured percentage of APD distributed to all Unity participants on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

• Reward Yield

Reward yield refers to the actual amount of APD received by each Unity participant on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to, e.g. fluctuating amounts of APD Unity.

• RFV

Risk Free Value, is the amount of funds the Cave guarantees to use for backing APD.

• TVL

Total Value Locked, is the dollar amount of all Unity APD in the protocol. This metric is often used as growth or health indicator in DeFi projects.

• TWAR

Time Weighted Average APD, is the average APD of an asset over a specified time. TWARs are used to represent the fair value of an asset as defined by the market.