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glossary.md

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Glossary of Terms

A

B

Bite
  • the action of triggering a CDPs liquidation
Boom/Bust Spread
  • Discount/premium at which the system sells collateral PETH for DAI
Burn
  • the process of destroying MKR that are paid as stability fees
Burner Address
  • the public Ethereum address that escrows MKR prior to burning

C

CDP Portal
  • a front-end application with which you can interact with your CDP
CDP
  • Collateralized Debt Position, a collateral position holding locked Ethereum administered by a smart contract system
Collateral Claims
  • the amount of redeemable collateral Dai holders and CDP owners have claim to in the event of an Emergency Shutdown
Collateral
  • assets locked in a CDP
Collateralization Ratio
  • the ratio between a CDPs collateral and the Dai issued by that CDP
Continuous Approval Voting
  • a voting design that involves leaving your vote in the previous proposal

D

Dai Credit System
  • a name for the MakerDAO smart contract system
Dai
  • USD pegged decentralized stablecoin of the Dai Credit System
Debt Ceiling:
  • the maximum amount of Dai that can be generated in the Dai Credit System
Debt:
  • the amount of Dai generated through a CDP
Decentralized Risk Management
  • the cooperative interaction between Maker Token Holders and all Risk Teams to manage risks in MakerDAO
Development Fund
  • another name for the Maker Foundation’s multisig wallet that contains MKR, which is sold for operational expenses
Draw
  • the action of generating Dai from a CDP

E

Emergency Shutdown
  • a security feature that allows the system to shut down and make underlying collateral available for redemption
Executive Vote
  • a continuous approval vote that executes changes in the system if passed

F

Free
  • the action of releasing collateral from a CDP

G

Give
  • the action of transferring CDP ownership to a different Ethereum address
Governance Poll
  • a time-based vote to gather soft consensus
Governance Portal
  • a front-end application that allows you to interact with MakerDAOs on-chain governance

H

I

J

Join/Exit Spread
  • a system parameter that represents a discount or premium for converting between ETH and PETH

K

Keeper
  • external actors who perform various functions in the system

L

Liquidation Penalty
  • a penalty fee that's applied to a CDPs Dai balance when it is liquidated
Liquidation Price
  • lowest price per unit of collateral before a CDP is vulnerable to liquidation
Liquidation Ratio
  • a risk parameter defining the minimum Collateralization Ratio below which a CDP is vulnerable to liquidation
Liquidation
  • automatic sale of a CDPs collateral to cover its outstanding Dai
Liquidity Providing Contract
  • a smart contract which facilitates collateral sales
Lock
  • the action of placing collateral into your CDP

M

Maker Foundation Interim Risk Team
  • the first Risk Team whose role is to help bootstrap the Decentralized Risk Management function
Maker Foundation
  • the organization that created to develop and bootstrap the Dai Credit System
Market-Maker
  • an agent that provides liquidity to a market by offering to both buy and sell a given asset.
MCD
  • acronym for Multi Collateral Dai
Medianizer
  • the smart contract that collects price feed information from Price-Feed Providers and publishes a reference price for each asset
MKR
  • governance token of MakerDAO
Multi Collateral Dai
  • the upgraded Dai Credit System that utilizes multiple collateral types

N

O

Oracle Security Module
  • a security mechanism that delays the Oracle price feed
Oracle
  • a smart contract system which makes off-chain data, such as price data, available on-chain

P

PETH
  • a token representing pooled ether
Price-Feed Delay
  • a risk parameter that controls the delay of the Oracle price feed
Price-Feed Provider
  • operator of an Oracle that reports price data to the Medianizer
Proposal
  • a written plan put forward for a vote

Q

R

Reference Price
  • the authoritative asset price published by the Medianizer
Risk Construct
  • a collection of data, risk models, outputs, documentation, and analysis
Risk Model
  • an analytical model measuring and predicting risk, including the input data and output of the model
Risk Parameters
  • a set of configurable, risk-related, variables used to manage the system
Risk Team
  • an independent party who creates a Risk Construct for Maker Governance

S

SCD
  • acronym for Single Collateral Dai
Shut
  • action of closing a CDP by paying back outstanding Dai and the Stability Fee
Single Collateral Dai
  • the Dai Credit System which solely accepts ETH as collateral
Soft-peg
  • relating the target value of a cryptocurrency to the absolute value of a fiat currency, allowing for some variance
Stability Debt:
  • the amount of Dai generated through a CDP
Stability Fee
  • a variable Fee charged to a CDP for the creation and use of Dai, set by MKR holders through governance actions

T

Time-Based Voting
  • a voting design that ends a vote at a predetermined time

U

V

Voting Proxy
  • a smart contract that allows MKR token holders to vote with their hot wallets using MKR that is stored on their cold wallets

W

WETH
  • ERC-20 compatible ETH
Wipe
  • action of paying back Dai to a CDP

X

Y

Z