Glossary
Illuvium Terms
Accumulated Rewards
Rewards accumulated by a wallet between the Staking v1 pause and Staking v2 going live. Only wallets that remained staked throughout this period are eligible for Accumulated Rewards. If you withdrew from the protocol at any point during the v1 pause, you will not receive any Accumulated Rewards.
The exact period covered by Accumulated Rewards is from 20th Jan 2022 at 06:37:05 +UTC to 31st March 2022 at 13:00:00 +UTC
Pending Rewards
Pending Rewards are any rewards that a wallet had before the Staking v1 pause. Any pending rewards claimed after the Staking v1 pause and before Staking v2 goes live will be void and need to be claimed again during the upgrade process.
Pool Weight
The value of one pool compared to others in the protocol for the purpose of liquidity mining. Pools with higher weights will receive more tokens from liquidity mining. For example, if there are only two pools, one with a weight of 0.2 and one with a weight of 0.8 — then they will receive 20% and 80% of the liquidity mining tokens, respectively. Pool weight is not used to calculate vault distributions.
The seed and team tokens are stored in a separate pool with a pool weight of 0.
Token Weight
Inside of each pool, a combination of the quantity of tokens and the token weights is used to disperse the liquidity mining tokens and the vault distribution tokens. A token weight of 2 will attract twice as many tokens as a token with a weight of 1.
Vest
In the $ILV protocol vesting tokens are those that are owned by the token holder, but are locked for a period of time before they can be withdrawn. They are still used in all calculations, and have the effect of compounding your returns.
There are two types of vesting tokens:
Vesting tokens from liquidity mining. When a person stakes tokens into one of the pools they will begin to accumulate additional $ILV. The token holder must then manually vest them, which stakes and locks them in the $ILV pool for 12 months with a token weight of 2.
The seed / team tokens. These are locked for 12 months, and then unlock linearly over the 12 months following that, with all tokens becoming unlocked after 24 months. These are held in a separate pool with a pool weight of 0, so they do not participate in liquidity mining. They do receive vault distributions.
General DeFi Terms
Gas
Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion.
The exact price of the gas is determined by supply and demand between the network’s miners—who can decline to process a transaction if the gas price does not meet their threshold—and users of the network who seek processing power.
Impermanent Loss
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
Liquidity
Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.
Liquidity Mining
Liquidity mining is when you stake a crypto asset into a smart contract in exchange for various benefits, the most common of which is generating additional tokens. Locking is an optional requirement, depending on the protocol and the rules. In the $ILV protocol, locking your tokens when you stake will result in a higher token weight.
As Illuvium is designed to be the world’s first decentralised AAA game, our mission is to disperse the tokens amongst a large number of active and interested participants in the project. This will ensure that decisions on the future of the project are made by those with a common goal of healthy, long-term success.
Lock
Locking is when a crypto asset that has been staked into a contract is modified in such a way that you cannot withdraw it until the locking period has expired. In the $ILV protocol, we offer locking periods of up to 12 months, with token weights increasing the longer you lock.
Slippage
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time, but is most prevalent during periods of higher volatility when market orders are used. It can also occur when a large order is executed but there isn’t enough volume at the chosen price to maintain the current bid/ask spread.
Definitions taken from www.investopedia.com/
SLP
Sushi Liquidity Provider tokens. They represent a share of ownership of the total liquidity in the Sushi ILV/ETH pool.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.
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