Glossary

APY is the yearly rate after compounding. Sward accrues interest every second, so a 4% simple rate actually costs a borrower about 4.08% over a year; APY is that honest number. Both sides of the market are quoted this way, everywhere in the product.

Base currency is the unit the oracle prices everything in. On this deployment it is USD with 8 decimals, so a raw value of 500000000 means $5.00. Fields ending in Base in the indexer use it.

Collateral is a supplied asset you've enabled to back borrows. Supplying alone doesn't create risk; enabling the collateral toggle does. Disabled supplies earn yield and can never be liquidated.

Health factor compresses a position into one number: collateral value times liquidation threshold, divided by debt. Above 1.00 you're safe. At or below it, liquidators may act. With no debt it reads ∞.

Liquidation is the forced partial repayment of an unhealthy loan. A liquidator repays up to half of one debt and takes collateral worth that repayment plus the penalty.

Liquidation penalty is the liquidator's discount on seized collateral, typically around 5%. It is the cost of letting a position cross the threshold.

Liquidation threshold is the loan-to-value at which a position becomes liquidatable. It sits above the max LTV on every asset, which is your built-in buffer.

LTV (loan-to-value) is debt divided by collateral value. Max LTV caps new borrows; you cannot borrow past it, only drift past it as prices move.

Optimal utilization is the kink in the interest-rate curve. Below it rates climb gently; above it the second slope makes borrowing expensive fast, which pulls the reserve back toward the target.

Reserve is the shared pool for one asset: its liquidity, its debt, its rates, its risk parameters. The Core market is a set of reserves that accept each other's collateral.

Reserve factor is the slice of borrow interest kept by the protocol treasury instead of paid to suppliers, set per reserve.

Utilization is the share of a reserve's liquidity currently lent out. It is the single input to the rate model.

Watch mode points the app at an address you don't control: full read access, full simulation in the action drawers, no ability to sign. See watching wallets.