📋Glossary of Terms

APR

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

APY

Annual Percentage Yield. The annualised interest rate, accounting for compounding

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.

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.

MC

Market capitalization - total market value of all WPFT tokens in existence WPFT price * WPFT supply

NFT

NFTs or Non-Fungible Tokens are a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. In the simplest terms, NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.

Pool

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

Reward Rate

Reward rate is the configured percentage of WPF distributed to all stakers 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 WPFT received by each staker on each rebase. The reward yield is a rough target from a policy point of view.

STAKE

Staking is the primary reward distribution mechanism of the protocol. It is intended to be the primary mechanism of value accrual for the majority of users.

WPFT and sWPFT always have a 1:1 ratio, meaning that you will always obtain 1 sWPFT for every 1 WPFT and vice versa via staking or unstaking on the WPF Dapp.

TAX

Annual Percentage Rate

The annualised interest rate, not accounting for compounding

TMV

Treasury Market Value - the current market value in dollars of all assets held in the treasury, including both reserves and all tokens.

WIP

WPF Improvement Proposal, the principle mechanism for DAO governance. Most WIPs begin as posts on our discussion forum, either proposed by DAO contributors, sourced from the community, or brought forward by a third party (typically to propose a partnership).

All WIPs must pass a vote by token holders on Snapshot prior to implementation - see our Governance Framework for more details on the WIP lifecycle.

WRAP

Why is this relevant?

In many countries, there is a clear distinction between Income Tax and Capital Gains Tax. Income Tax applies to regular income, usually received for work done. Capital Gains Tax applies to money gained from (for example) the sale of an asset like a house or investment. In many cases, Capital Gains Tax is lower than Income Tax, and so it may be dilligent to make it as clear as possible to the taxation authorities of your country/jurisdiction that you are receiving a capital gain.

Users can wrap their sWPFT tokens on our dApp. The wsWPF token price is calculated as follows:

sWPFTPrice * Index

The price of sWPF is always equal to the price of WPF, and the Index is a number used to track the value added to a staked token by rebases. Therefore, the price of wsWPF will change as if it were rebasing, without needing to rebase.