Glossary
Key Terms & Definitions
This glossary provides definitions for key terms used throughout the GRQ Protocol documentation. Understanding these terms will help you navigate the protocol more effectively.
Protocol Terms
- Algorithmic Stablecoin
- A cryptocurrency that aims to maintain a stable value through algorithmic mechanisms rather than being backed by collateral. GRQ is an algorithmic token that targets a value of 1 BERA.
- APR (Annual Percentage Rate)
- The annual rate of return on an investment, expressed as a percentage. In GRQ, APR refers to the expected yearly returns from staking or providing liquidity, not accounting for compounding.
- APY (Annual Percentage Yield)
- Similar to APR, but accounts for the effect of compounding. APY is typically higher than APR because it assumes rewards are reinvested.
- Bonds / Wealth Trap
- In GRQ, bonds (bGRQ) are tokens issued during contraction phases when GRQ is below peg. Users can buy bGRQ with GRQ at a discount, which burns GRQ and helps restore the peg. Bonds can be redeemed for GRQ when the protocol returns to expansion.
- Boardroom / Pyramid Lounge
- The governance staking mechanism where sGRQ holders can stake their tokens to earn GRQ emissions during expansion phases. The Pyramid Lounge is GRQ's implementation of the Boardroom concept.
- Contraction
- A phase when GRQ trades below its target peg (1 BERA). During contraction, the protocol activates mechanisms to reduce GRQ supply, such as bond issuance, and pauses emissions from the Pyramid Lounge.
- Epoch
- A fixed time period in the protocol. In GRQ, epochs last 6 hours and mark when certain protocol actions occur, such as emissions from the Pyramid Lounge during expansion phases.
- Expansion
- A phase when GRQ trades above its target peg (1.01 BERA or higher). During expansion, the protocol mints new GRQ tokens and distributes them to sGRQ stakers in the Pyramid Lounge.
- Farming / Hustle Hub
- The process of staking LP tokens to earn rewards. In GRQ, the Hustle Hub is where users can stake LP tokens like GRQ-WBERA to earn additional tokens.
- Genesis
- The initial distribution phase of GRQ, lasting 7 days, where users stake eligible Berachain ecosystem tokens to earn GRQ rewards.
- Impermanent Loss
- The temporary loss of funds experienced by liquidity providers due to price volatility in a trading pair. It occurs when the price ratio of tokens in a liquidity pool changes compared to when they were deposited.
- Liquidity Pair
- A trading pair in a decentralized exchange that allows users to swap between two tokens. The main liquidity pair in GRQ is GRQ-WBERA, which facilitates trading between GRQ and wrapped BERA.
- Peg
- The target value that GRQ aims to maintain, which is 1 BERA. The protocol uses various mechanisms to try to keep GRQ's price close to this peg.
- PoL (Proof of Liquidity)
- Berachain's mechanism for incentivizing liquidity provision. GRQ integrates with PoL through receipt tokens, allowing users to earn additional BGT rewards by staking their receipt tokens in Berachain's Reward Pools.
- Receipt Tokens
- ERC-20 tokens issued to users when they stake LP tokens in GRQ's staking pools. These receipt tokens represent the user's stake and can be used to earn additional BGT rewards through Berachain's PoL system.
- Seigniorage
- The profit made by a protocol from issuing currency. In GRQ, seigniorage refers to the new GRQ tokens minted during expansion phases, which are distributed to sGRQ stakers in the Pyramid Lounge.
- Staking
- The process of locking up tokens to earn rewards. In GRQ, users can stake various tokens during Genesis, stake LP tokens in farms, or stake sGRQ in the Pyramid Lounge.
- Tomb Fork
- A type of algorithmic stablecoin protocol inspired by the original Tomb Finance on Fantom. GRQ is a tomb fork that aims to maintain a peg to BERA through a three-token system (GRQ, sGRQ, bGRQ) and expansion/contraction mechanics.
- TVL (Total Value Locked)
- The total value of assets deposited in a protocol, expressed in dollar terms. TVL is a key metric for measuring the size and adoption of a DeFi protocol.
GRQ Token System
- $GRQ
- The primary token of the protocol, designed to maintain a soft peg to 1 BERA. GRQ is used as the medium of exchange across the protocol and is the token that users aim to accumulate.
- $sGRQ
- The governance and staking token of the protocol. Users stake sGRQ in the Pyramid Lounge to earn GRQ emissions during expansion phases. sGRQ also grants voting rights on protocol decisions.
- $bGRQ
- The bond token, available only during contraction phases when GRQ is below peg. Users can buy bGRQ with GRQ at a discount, which burns GRQ and helps restore the peg. bGRQ can be redeemed for GRQ when the protocol returns to expansion.
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