Glossary of Terms

A list of words, terms, variables, functions and more relating to Maven Finance

DeFi (Decentralized Finance):

DeFi refers to a set of financial applications built on blockchain technology that aims to provide decentralized alternatives to traditional financial systems.

DeFi platforms like Maven Finance enable users to access financial services such as lending, borrowing, and yield farming without relying on 3rd party intermediaries.

Staking:

Staking in Maven Finance involves users locking their MVN tokens in a special smart contract to participate in the platform's governance and earn rewards. By staking MVN tokens, users contribute to the governance and decentralization of the network.

In return for staking, users receive incentives in the form of governance rewards from Satellites that vote on governance proposals as well as oracle rewards from Satellites that are active in providing oracle data.

Staking provides users with the opportunity to actively engage in the operations and decision-making of the Maven Finance ecosystem.

Delegate:

In the context of Maven Finance's governance model, a delegate is a user who delegates their staked MVN tokens to a Satellite.

Delegating tokens allows users to participate in the governance process by empowering the delegated Satellite to vote on their behalf. Delegates have the flexibility to re-delegate their tokens to different Satellites based on their preferences.

Satellites:

Satellites are nodes within the Maven Finance platform that participate in the governance process. They vote on governance updates, sign price feeds for the oracle, control the on-chain treasury, and receive delegations from stakeholders.

Satellites play a crucial role in the decentralized governance of the platform as they are the curators of the DAO. Anyone may become a Satellite, provided they stake a sufficient amount of MVN.

Aggregator:

An aggregator in Maven Finance refers to a smart contract that collects and consolidates data from subscribed Satellites, or Oracles, to provide reliable and accurate information.

Aggregators play a crucial role in ensuring the integrity of data used for various processes, such as price feeds, lending, and other on-chain operations.

Council:

The Council in Maven Finance refers to a core group of Maven Finance members who act on behalf of the platform's governance decisions.

The Council may have administrative access and authority during emergency governance events or other critical situations, as voted on by the DAO.

Governance:

Governance refers to the process by which decisions and changes are made within the Maven Finance ecosystem. It involves the participation and voting of Satellites, who represent the interests of stakeholders in shaping the platform's rules, parameters, and upgrades.

Through governance, Satellites can propose, discuss, and vote on various matters related to the platform's development, treasury management, risk parameters, and other governance-related decisions.

Maven Finance's governance model aims to create a decentralized and community-driven ecosystem where the community actively shapes the platform's future.

Governance Token (MVN):

MVN is the governance token of Maven Finance.

Token holders can participate in the platform's governance by staking their MVN tokens and delegating their voting power to Satellites, which vote on behalf of token holders. Active participation in governance can earn users rewards in the form of sMVN tokens (Staked MVN).

Yield Farming:

Also known as liquidity mining, yield farming involves providing liquidity to decentralized exchanges or liquidity pools in return for rewards. Users stake their tokens in these pools to facilitate trading and earn a share of transaction fees or other incentives.

Emergency Governance:

Emergency Governance is a mechanism in Maven Finance that allows users to trigger an emergency decision in the event of a critical flaw or vulnerability detected within the platform's smart contracts.

When sufficient votes based on users' staked MVN total are reached, a break glass event is triggered. This mechanism ensures the platform's security and stability by enabling timely actions to address critical issues.

The Emergency Governance mechanism is the only governance vote which requires sMVN holders to vote directly on their own behalf, and not rely on delegated governance via Satellites.

Break Glass:

The Break Glass mechanism is part of Maven Finance's emergency governance system. When a break glass event is triggered, the Break Glass contract is activated, pausing all functions within the Maven Finance system.

It also transfers admin access and authority to the Break Glass Council who can then transfer access to whitelisted developer addresses, allowing them to patch any unforeseen bugs or vulnerabilities that threaten the network's integrity. The Break Glass mechanism ensures the long-term security and stability of the platform.

Lending:

Maven Finance's lending mechanism operates through multi-collateral, non-custodial vaults. Lending pools enable borrowers to use their crypto-assets as collateral and borrow assets such as USDT and EURL.

Borrowers are charged interest on their loans, along with a one-time admin origination fee when creating a new vault.

LP (Liquidity Provider) Tokens:

LP tokens represent a user's ownership of their contribution to a liquidity pool. Users receive LP tokens when they deposit tokens into a liquidity pool. These tokens serve as proof of their share in the pool and allow them to withdraw their portion of the pool's liquidity and accrued rewards. Maven Finance's LP tokens are referred to as mTokens.

mToken:

In Maven Finance's context of providing liquidity, mToken refers to the tokens issued to lenders when they supply assets to the lending pools in Maven Finance.

For example, when a user supplies USDT to the USDT lending pool, they receive mUSDT tokens in return. mTokens represent the lenders' contribution the pool and may be redeemed at a one-to-one ratio for the underlying asset such as USDT.

Holders of mTokens will automatically see their balance increase whenever fees are accrued to the lending pool, such as through the repayment of interest from borrowers. These mTokens can be staked within yield farms to earn additional rewards.

In essence, mTokens provide liquidity providers with flexibility and the ability to earn yields from their supplied assets.

Multi-Collateral Vaults:

Maven Finance allows users to open multi-collateral vaults for specific loan asset types.

Users can deposit multiple asset types as collateral in a single vault and borrow one loan asset at a time. Users have to maintain a robust over-collateralization ratio of 200% to secure the loans and prevent the risks of liquidation.

Liquidation:

When a vault's collateral falls below the required collateralization ratio, it becomes susceptible to liquidation. A third-party user can initiate the liquidation process, by first marking the vault for liquidation.

After a vault has been marked, it enters a short grace period where the vault owner may increase the collateral inside the vault to prevent it from being liquidated. Once the grace period ends, if the vault is still liquidatable, liquidators will be able to repay the at-risk loan by buying out collateral from the vault.

Liquidation helps maintain the stability and security of the lending system.

APY (Annual Percentage Yield):

APY is a measure of the annualized return on investment, considering compounding. It takes into account the interest earned or rewards received from participating in yield farming or supplying assets.

InterestRate Model:

Maven Finance implements an interest rate model that manages liquidity risk and optimizes utilization.

Borrow interest rates are derived from the utilization rate, which indicates the availability of capital within the pool. The interest rates are adjusted to encourage borrowing when capital is available and encourage repayments when capital is scarce.