Key concepts

Yield Bearing Token (YBT): A token that accrues interest or returns over time, providing holders with passive income. YBTs are commonly used in DeFi platforms to earn yields from lending, staking, or other financial activities without the need to actively manage the underlying assets. StableNest's sUSDC is an example of a yield-bearing token.

APY (Annual Percentage Yield): The annualized rate of return earned on an investment, taking into account the effect of compounding interest. In the context of lending protocols, it represents the interest rate earned by lenders on their deposited assets.

Yield Source: A mechanism in DeFi that generates returns on staked or deposited assets, such as lending protocols like Scallop and Navi Protocol on Sui, liquidity pools, and staking rewards from various projects.

DeFi Strategy: A planned approach to maximize returns on crypto assets using DeFi protocols, involving activities like yield farming, liquidity mining, and leveraging different DeFi products across ecosystems like Sui.

Lending Protocol: A DeFi platform that allows users to lend their crypto assets for interest, enabling borrowers to obtain loans with collateral through smart contracts. Examples on Sui include Scallop and Navi Protocol.

Liquidation: The process of selling off collateral assets to cover a loan that is in default. Liquidation occurs when the value of the collateral falls below a certain threshold relative to the loan amount.

Utilization Rate: The percentage of total available funds in a liquidity pool that are currently being borrowed. High utilization rates can lead to higher interest rates for borrowers and lenders.

Borrow Rate: The interest rate that borrowers must pay to take out a loan on a lending platform. This rate can fluctuate based on supply and demand dynamics within the platform.

Rebalancing: Adjusting the composition of a portfolio to maintain a desired allocation or risk level. In DeFi, this involves moving assets between protocols, yield sources, or tokens to optimize performance and manage risk. StableNest performs automated rebalancing across Sui lending protocols.

Multi-Protocol Approach: An investment strategy involving diversifying across multiple DeFi protocols to reduce single-point-of-failure risk and optimize returns. This enhances portfolio stability and provides exposure to various yield opportunities across the ecosystem.

Collateral: Assets pledged by a borrower to secure a loan. If the borrower fails to repay the loan, the collateral can be seized by the lender.

Deposit: The act of placing assets into a yield-generating protocol or vault to earn rewards and participate in DeFi activities.

Withdrawal: The process of withdrawing assets from a yield-bearing position, typically involving the conversion of yield-bearing tokens like sUSDC back into the original stablecoin asset plus accrued yield.

Yield Optimization: A system maximizing return on deposited funds by using an automated service that actively compares market rates across multiple protocols to optimize yield through intelligent rebalancing.

Total Value Locked (TVL): A metric used in the cryptocurrency sector to determine the total U.S. dollar value of digital assets locked, or staked, on a particular blockchain network via decentralized finance (DeFi) platforms or decentralized applications (dApps).

Decentralized Finance (DeFi): Decentralized finance offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain like Sui.

Predictive Onchain Data: Information derived from blockchain analytics that helps predict optimal yield opportunities and protocol performance, enabling proactive rather than reactive investment strategies.

Sui Network: A high-performance, low-latency blockchain designed for global adoption, featuring parallel execution and a object-centric data model that enables efficient DeFi applications like StableNest.