Glossary

Definitions of the terms used across the Vane documentation, in alphabetical order. Values marked as announced at launch are not yet fixed.

Allocation#

A share of forfeited interest recorded on a locked blade after another blade is broken. Allocations are paid only at the receiving blade's maturity, and are forfeited again if that blade is itself broken. See Redistribution.

Blade#

A fixed-term deposit of a stablecoin amount, its principal, locked for one term and owned by the depositing address. Its states are locked, matured, withdrawn, rolled and broken.

Boost#

A multiplier on a blade's weight in redistribution. It is 1 without $VANE staking; the boost formula is announced at launch. It does not affect base interest.

Break#

Ending a locked blade before maturity, also called an early break. The owner receives the full principal; the blade's accrued interest and allocations are forfeited and redistributed. See Early break and redistribution.

Buy-and-burn#

The use of protocol fee proceeds to buy $VANE and permanently remove it from circulation.

Deposit asset#

The stablecoin a blade is denominated in. Vane accepts USD stablecoins; the supported list is announced at launch and is a governance parameter.

Forfeited interest#

The interest a blade has accrued, plus any allocations it holds, given up when it is broken.

GIWA Chain#

An Ethereum layer 2 built with the OP Stack, on which Vane is built. See the GIWA documentation (opens in a new tab). Vane is not affiliated with GIWA.

Governance parameter#

A protocol setting that $VANE holders are planned to vote on: term length, protocol fee level and supported stablecoins.

Interest#

The share of yield from the yield source earned by a locked blade, pro rata to principal and time locked. It is variable, can be zero, and is paid at maturity.

Maturity#

The end of a blade's term. Principal, interest net of the protocol fee and allocations become claimable, and the blade stops accruing.

Month#

A protocol period of fixed length defined in the contracts. Its length in seconds will be published with the deployment.

Principal#

The stablecoin amount deposited in a blade. The protocol fee never applies to it.

Protocol fee#

A fee taken on interest only, when interest is paid at maturity. Its level is announced at launch. Proceeds fund buy-and-burn.

Pungcha-dolligi#

풍차돌리기, "spinning the windmill": the Korean savings technique of opening a new fixed-term account every month so that one matures every month. See The 풍차돌리기 ladder.

Redistribution#

The allocation of forfeited interest, at the moment of a break, to every other locked blade pro rata to weight.

Roll#

Turning a matured blade's full amount, optionally with new funds added, into the principal of a new blade in the same slot. A new term starts.

Slot#

One of the six positions of a wheel, one per month of the term. A slot holds at most one blade and has one turn per term.

Term#

The period a blade is locked: six months initially. Term length is a governance parameter; a change applies to new blades only.

$VANE#

The planned protocol token, used for boost, buy-and-burn and governance. It is not live and has no contract address. The only official source is @VaneGiwa (opens in a new tab).

Weight#

A blade's weight in redistribution: principal × boost.

Wheel#

An address's set of six slots. Once full, one blade matures every month.

Withdraw#

Sending a matured blade's full amount to the owner's wallet, which frees its slot for that month's new blade.

Yield source#

The on-chain venue where deposits are placed to generate interest. It will be announced before launch. See Yield source.