search

Glossary

This is an explanation of the terms used in the guideline above.

hashtag
Basic Tokens and Mechanisms

  • PoL (Proof of Liquidity): A mechanism where contributing to network security by providing liquidity to a specific dApp earns rewards.

  • PoS (Proof of Stake): A traditional consensus mechanism where staking native tokens contributes to network security and earns rewards.

  • BERA: The native gas token of Berachain.

  • BGT (Berachain Governance Token): The governance and PoL reward token of Berachain.

  • HONEY: Berachain's stablecoin. It is generated with stablecoins (USDC, BYUSD) as collateral and used as the basic unit of transaction within the dApp ecosystem.

  • SBT (Soulbound Token): A token that is permanently bound to a specific wallet and cannot be transferred.

  • Governance: A decentralized decision-making system where token holders decide on important protocol matters through voting.

hashtag
Protocol-Specific Tokens

  • NECT: A stablecoin issued by the Beraborrow protocol.

  • POLLEN: The governance token of the Beraborrow protocol.

  • iBERA (Infrared BERA): A liquid staking derivative token issued by the Infrared protocol for staking BERA.

  • iBGT (Infrared BGT): A token that liquefies BGT rewards in the Infrared protocol.

hashtag
DeFi Related Terms

  • dApp (Decentralized Application): A decentralized application.

  • DEX (Decentralized Exchange): A decentralized exchange.

  • LP Token (Liquidity Provider Token): A token received in return for providing liquidity to a DEX liquidity pool.

  • TWAP (Time-Weighted Average Price): The average price over a specific period, resistant to short-term price manipulation.

  • VWAP (Volume-Weighted Average Price): A method of calculating the average price that considers trading volume.

  • LTV (Loan-to-Value): The ratio of the loan amount to the value of the collateral.

  • Slippage: The difference between the requested price of an order and the actual execution price.

  • Impermanent Loss: A phenomenon where providing liquidity to a DEX results in a loss compared to simply holding the assets due to price fluctuations within the pool.

  • Staking: The act of locking up tokens to contribute to network security and receive rewards.

  • Timelock: a mandatory waiting period before a specific action can be executed. It is a security measure to prevent abrupt changes.

  • Emergency Withdrawal: A feature to withdraw funds faster than the normal withdrawal process, usually with a penalty.

  • Oracle: A service that brings real-world data (like price information) from outside the blockchain to the inside.

  • Pegging: The state where a stablecoin maintains its target price (usually $1).

  • De-pegging: A condition in which a stablecoin or asset deviates beyond a certain threshold from its target peg price.

  • Minting: The act of depositing collateral and issuing new tokens (like HONEY, NECT).

  • Redeem: The act of returning issued tokens to retrieve the collateral assets.

  • Smoothing: A mechanism to mitigate sharp price fluctuations and maintain a stable value.

  • MEV (Maximal Extractable Value): The maximum value that can be extracted by block producers or validators by manipulating the order of transactions.

  • Front-running: The act of profiting by identifying another user's transaction and executing a trade before them.

  • Circuit Breaker: A safety mechanism that automatically halts trading when an abnormal situation is detected.

  • Sybil Attack: An attack where a single entity creates multiple fake accounts to manipulate votes.

  • Quadratic Voting: A voting method that limits the influence of large holders by calculating voting power based on the square root of token holdings.

  • Single-sided Liquidity: Providing liquidity with only one type of token.

  • Swap Router: A router contract that handles token swaps.

  • Tick: A unit representing a price range in Uniswap V3.

  • Whitelist: A list of allowed tokens or addresses.

  • Multi-sig: Multiple signatures. A security mechanism requiring multiple signatures.

  • Re-entrancy attack: An attack that exploits vulnerabilities such as the withdrawal function of a smart contract and other external asset transfers to update internal states (e.g., balances). The attacker re-enters the same function of the contract through the fallback (or receive) function that the contract uses to send funds and receive those funds, exploiting the fact that the internal state has not yet been updated, allowing repeated fund withdrawals.

  • ERC20 Compliance: Accurately implementing the functions and events defined by the ERC20 standard for tokens issued on the Ethereum blockchain. ERC20 is an abbreviation for "Ethereum Request for Comments 20," a standard that ensures compatibility and interoperability of fungible tokens on the Ethereum network. https://ethereum.org/ko/developers/docs/standards/tokens/erc-20/arrow-up-right https://eips.ethereum.org/EIPS/eip-20arrow-up-right

hashtag
Berachain Ecosystem Related Terms

  • Boosting: A mechanism where BGT holders delegate BGT to a specific validator to increase that validator's rewards.

  • Flywheel: A structure in the Berachain ecosystem where incentives among participants create a virtuous cycle, leading to the growth of the entire ecosystem.

  • Reverse Flywheel: A situation where the ecosystem falls into a vicious cycle due to decreased liquidity or participant churn.

  • LSP (Liquid Stability Pool): A pool in Beraborrow for NECT peg stability and liquidation support.

  • Den: An individual debt position in Beraborrow where users deposit collateral and mint NECT.

  • Reward Vault: A contract that distributes BGT or incentive tokens to liquidity providers.

  • Incentive Token: An additional reward token provided by the protocol.

  • Delegation: The act of BGT holders delegating BGT to validators to provide a boosting effect.

  • Operator: An entity responsible for a validator's reward distribution. It is set by the validator and holds the authority for reward distribution.

  • Basket Mode: A mode in HONEY for minting/redeeming with a combination of multiple collateral assets instead of a single asset.

  • Queue System: A waiting system that processes requests in order.

  • Guardians: Trusted entities with the authority to review and approve/reject governance proposals.

  • Keeper: A bot or account with the authority to automatically execute specific protocol functions.

  • Merkle root verification technique: Configure the system so that transactions automatically fail upon submission of an incorrect proposer index, using the SSZ.verifyProof module based on the beacon root at a specific timestamp.

  • iBERA/BERA: The swap pool between Berachain’s native token BERA and Infrared dApp’s dedicated token iBERA

  • Bribe System: An incentive mechanism that encourages liquidity providers and validators to act in favor of Infrared by offering additional rewards to Infrared-related validators, so that more BGT incentives are allocated to Infrared liquidity pools.

  • Mass Harvesting: The act of seeking unfair gains by claiming a large amount of rewards at once by timing the claim before and after a fee change.

PreviousdApp Security Guidelines: ChainingNextExternal Resources

Last updated