# Glossary A comprehensive list of terms used throughout the World Liberty Financial ecosystem and their corresponding descriptions. *** ## General terms | Term | Description | | ------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **DeFi** | Decentralized Finance. A financial system built on blockchain technology that operates without traditional intermediaries like banks. | | **Smart Contract** | Self-executing code deployed on a blockchain that automatically enforces the terms of an agreement. WLFI Markets, USD1, and WLFI all operate through smart contracts. | | **Wallet** | A digital application that stores your private keys and allows you to interact with blockchain networks. Examples include MetaMask, Phantom, Binance Wallet, and OKX Wallet. | | **Web3** | The next generation of the internet built on decentralized blockchain technology, enabling users to own and control their data and assets. | | **EVM** | Ethereum Virtual Machine. The runtime environment for smart contracts on Ethereum and compatible networks. | | **Gas Fee** | The cost paid to execute transactions on a blockchain network. Gas fees are paid in the native currency of the network (e.g., ETH on Ethereum). | | **Transaction** | An action recorded on the blockchain, such as supplying, borrowing, withdrawing, or repaying assets. | *** ## WLFI Markets | Term | Description | | ----------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **WLFI Markets** | A non-custodial DeFi interface that allows users to access Dolomite, a third-party protocol, to supply digital assets and access liquidity through collateralized borrowing. All core functionality is provided by the Dolomite protocol. | | **Dolomite** | The decentralized protocol that powers WLFI Markets. Dolomite handles all asset movements, lending logic, collateralization rules, and liquidations. | | **Non-custodial** | A system where users retain full control of their assets at all times. WLFI Markets never takes custody of user funds. | | **Dashboard** | The main interface in WLFI Markets where users can view their positions, access third party protocols to supply and borrow assets, and monitor their collateral ratio. | *** ## Supply and lending | Term | Description | | ----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Supply** | The action of supplying digital assets with third party providers, such as Dolomite, through WLFI Markets to earn rewards and enable borrowing. Supplied assets become part of the liquidity pool. | | **Liquidity Pool** | A shared pool of assets where suppliers provide liquidity that borrowers can access through overcollateralized positions. The pool is managed by decentralized smart contracts. | | **Supply Rate** | The reward rate that suppliers earn on their supplied assets. Supply rates vary by asset and adjust dynamically based on utilization. | | **Total Supplied** | The total amount of a specific asset being supplied to Dolomite through the WLFI Markets interface across all users. | | **Available Liquidity** | The difference between total supplied and total borrowed assets, representing what is available for borrowing or withdrawal. | | **Utilization Rate** | The percentage of total supplied assets that are currently being borrowed. Higher utilization leads to higher rates. Calculated as: Total Borrowed ÷ Total Supplied × 100%. | *** ## Borrowing | Term | Description | | --------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | | **Borrow** | The action of taking out a loan by using supplied assets as collateral. Borrowed assets are sent directly to your wallet. | | **Borrow Rate** | The rate paid on borrowed assets. Borrow rates vary by asset and increase as utilization increases. | | **Borrow Position** | An active loan where you have borrowed assets against your collateral. Your position tracks the borrowed amount and accumulated rates. | | **Borrow Power** | The maximum amount you can borrow based on your collateral value and the liquidation threshold of your assets. | | **Borrow Power Used** | The percentage of your available borrowing capacity currently in use. | | **Total Borrowed** | The total amount of a specific asset being borrowed across all users on WLFI Markets. | | **Total Debt** | The total USD value of all your borrowed assets across all positions. | *** ## Collateral and risk | Term | Description | | ------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Collateral** | Assets you supply to third-party providers, such as Dolomite, through WLFI Markets that back your borrow positions. Collateral ensures lenders can be repaid if a loan isn't repaid. | | **Collateral Ratio** | A metric indicating the safety of your borrow position. Calculated as: Total Collateral Value ÷ Total Borrowed Value. A ratio above 1.0 is safe; below 1.0 triggers liquidation. | | **Liquidation Threshold** | The maximum borrowing ratio at which your position becomes eligible for liquidation. For example, an 85% threshold means you can borrow up to 85% of your collateral's value. | | **Liquidation** | The process that occurs when your collateral ratio drops below 1.0. A portion of your collateral is sold to repay lenders and cover the liquidation penalty. | | **Liquidation Penalty** | A fee applied when a position is liquidated. This penalty disincentivizes risky positions and rewards liquidators. | | **Margin Ratio** | A parameter used for margin calculations that affects borrowing capacity. | | **Margin Requirement** | The minimum collateralization level required to maintain a position. The default margin requirement is 117.65% (85% liquidation threshold). | *** ## Withdrawing and repaying | Term | Description | | -------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Withdraw** | The action of removing previously supplied assets from third-party providers, such as Dolomite, through WLFI Markets back to your wallet. Withdrawals are subject to available liquidity and collateral requirements. | | **Repay** | The action of paying back borrowed assets to reduce your debt. Repaying improves your collateral ratio and frees up collateral for withdrawal. | | **Remaining Supply** | The amount of supplied assets that will remain in the protocol after a withdrawal. | | **Remaining Debt** | The amount of borrowed assets that will remain outstanding after a repayment. | *** ## Rates and rewards | Term | Description | | --------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Rate** | The percentage earned on supplied assets (supply rate) or paid on borrowed assets (borrow rate). Rates are dynamic and adjust based on market conditions. | | **Net Rate** | The combined effect of all supply and borrow positions on your net worth, including incentives. A positive net rate means you're earning more than paying; negative means the opposite. | | **Net Worth** | The total USD value of your supplied assets minus your borrowed assets. | | **Rewards** | Earnings accumulated on supplied assets based on the current supply rate. | | **Borrow Rate Model** | The algorithm that determines how borrow rates adjust based on utilization. Rates increase as utilization increases to balance supply and demand. | *** ## E-Mode (efficiency mode) | Term | Description | | ------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **E-Mode** | Efficiency Mode. A feature that enables higher capital efficiency when borrowing correlated assets (e.g., stablecoins against stablecoins). E-Mode applies more favorable liquidation thresholds. | | **E-Mode Category** | A grouping of correlated assets that qualify for E-Mode benefits. WLFI Markets provides access to third party protocols that support Stablecoin E-Mode and Ethereum-correlated E-Mode. | | **Stablecoin E-Mode** | An E-Mode category for positions containing only USD-pegged stablecoins (USD1, USDC, USDT). Enables higher borrowing power for stablecoin-to-stablecoin positions. | | **Ethereum-correlated E-Mode** | An E-Mode category for positions containing only ETH and ETH-derivative assets. Enables higher borrowing power for ETH-related positions. | | **Correlated Assets** | Assets whose prices tend to move together, such as different stablecoins pegged to the same currency. | *** ## Markets and assets | Term | Description | | ------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Market** | An instance of a specific token within the liquidity pool accessed through WLFI Markets. Each market has its own risk parameters, rates, and configurations. | | **Market ID** | A numerical identifier used to reference a market. Markets are referenced by IDs rather than token addresses for efficiency and stability. | | **Oracle** | A service that provides external data (such as asset prices) to smart contracts. WLFI Markets and Dolomite uses Chainlink oracles for accurate, manipulation-resistant pricing. | | **Oracle Price** | The price of an asset as determined by the protocol's price oracle. Used to value collateral and calculate borrowing limits. | | **Supply Cap** | The maximum total amount of an asset that can be supplied to third party protocols accessed on WLFI Markets. | | **Borrow Cap** | The maximum total amount of an asset that can be borrowed from third party protocols accessed on WLFI Markets. | | **Collateral Only** | An asset that can be supplied as collateral but cannot be borrowed. These assets typically earn yield from external sources. | | **Risk Parameters** | Settings that govern each market's behavior, including liquidation threshold, margin ratios, and caps. Set by [Dolomite governance](https://docs.dolomite.io/dolomite-governance). | *** ## Supported assets | Term | Description | | --------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **USD1** | World Liberty Financial's USD-backed stablecoin redeemable by eligible users on a 1:1 basis for the U.S. dollar. Issued by BitGo and backed by U.S. cash, short term U.S. government treasuries, U.S. government money market funds, and other cash equivalents. | | **USDC** | USD Coin. A stablecoin issued by Circle, pegged 1:1 to the U.S. dollar. | | **USDT** | Tether USD. A stablecoin issued by Tether, pegged 1:1 to the U.S. dollar. | | **ETH** | Ethereum. The native cryptocurrency of the Ethereum blockchain. | | **WETH** | Wrapped Ether. An ERC-20 token representation of ETH. When you supply ETH to WLFI Markets, it's automatically wrapped to WETH. | | **cbBTC** | Coinbase Wrapped Bitcoin. An ERC-20 token representation of Bitcoin on the Ethereum blockchain, issued by Coinbase. | | **WLFI** | World Liberty Financial governance token. Used to participate in governance of the WLF Protocol. | *** ## USD1 stablecoin | Term | Description | | ----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Stablecoin** | A cryptocurrency designed to maintain a stable value, typically pegged 1:1 to a fiat currency like the U.S. dollar. | | **Peg** | The target value that a stablecoin aims to maintain. USD1 is pegged 1:1 to the U.S. dollar. | | **Backing** | The reserves that support a stablecoin's value. USD1 is backed 100% by a reserve containing short term U.S. government treasuries, U.S. government money market funds, and other cash equivalents. | | **BitGo** | The regulated digital asset custodian that issues, mints, and redeems USD1. BitGo also provides custody and technical infrastructure. | | **Attestation Reports** | Periodic reports confirming that USD1's reserves match or exceed the circulating supply. Published by independent third parties. | | **Minting** | The process of creating new stablecoin tokens. USD1 can be minted by BitGo when eligible users deposit equivalent USD reserves. | | **Redemption** | The process of exchanging stablecoins for the underlying fiat currency. Eligible BitGo customers can redeem USD1 for USD. | | **Multichain** | The ability for a token to exist on multiple blockchain networks. USD1 is deployed across 11+ blockchain networks. | *** ## USD1 Points Program | Term | Description | | ------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **USD1 Points** | A non-transferable participation metric that tracks engagement with USD1 across supported platforms. Points are not tokens, do not represent monetary value, and cannot be traded. | | **Points Accrual** | The process of accumulating USD1 Points through eligible activities such as supplying USD1 on WLFI Markets or other applicable third-party providers. | | **Participation Metric** | A measure of user engagement based on certain activities subject to change and does not represent yield, or financial return. | *** ## WLFI governance token | Term | Description | | -------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **$WLFI** | The governance token of World Liberty Financial. The sole purpose of WLFI is to participate in governance of the WLF Protocol. | | **Governance** | The process by which token holders propose, discuss, and vote on matters that shape the protocol's direction and evolution. | | **Governance Power** | The ability to create proposals or vote in governance, based on the amount of WLFI tokens held. | | **Voting Power** | The amount of influence a user has in governance decisions, determined by their WLFI holdings. Capped at 5% of total supply per holder. | | **Proposal** | A suggested change, initiative, or action submitted by a token holder for community review and voting. | | **Snapshot** | A record of token ownership taken when a proposal is approved for voting. Only holders in the snapshot can vote on that proposal. | | **Quorum** | The minimum number of tokens that must be voted for a proposal to pass. Set at 1,000,000,000 WLFI tokens. | | **Forum** | The platform where governance discussions and proposal development take place. Available at [governance.worldlibertyfinancial.com](https://governance.worldlibertyfinancial.com/). | | **Multi-Sig** | Multi-signature wallet. A wallet that requires multiple approvals to execute transactions. Used to administer the WLF Protocol. | *** ## Token supply and unlock | Term | Description | | ---------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- | | **Total Token Supply** | The total number of tokens ever minted. WLFI has a fixed supply of 100,000,000,000 tokens. | | **Outstanding Token Supply** | The total token supply minus tokens held in treasury by World Liberty Financial. | | **Votable Token Supply** | The outstanding supply reduced by tokens held by persons whose holdings exceed the 5% voting cap. | | **Token Unlock** | The process by which early purchasers can access their WLFI tokens according to a defined schedule. | | **Unlock Schedule** | The timeline determining when purchased tokens become available for transfer. Initial unlock is 20%, with the remaining 80% determined by governance. | | **Unlocking** | A schedule that releases tokens gradually over time rather than all at once. | | **Cliff** | The point at which tokens first become available to claim. The initial cliff for WLFI was September 1, 2025. | | **Claim** | The action of transferring unlocked tokens from the unlocking contract to your wallet. | *** ## Wallet and connection | Term | Description | | ------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | | **Connect Wallet** | The process of linking your Web3 wallet to WLFI Markets to interact with the protocol. | | **Sign In With Ethereum** | A standard for authenticating users by signing a message with their Ethereum wallet, proving ownership. | | **Signature Request** | A prompt to sign a message in your wallet. Used for authentication and accepting terms of service. | | **EIP-712** | An Ethereum standard for signing structured data. Used for the Terms of Service acceptance on WLFI Markets. | | **Token Approval** | Permission granted to a smart contract to spend a specific token from your wallet. Required before supplying or repaying assets. | | **Allowance** | The amount of tokens a smart contract is authorized to spend on your behalf. | *** ## Blockchain and networks | Term | Description | | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | | **Ethereum** | A decentralized blockchain platform that supports smart contracts. WLFI Markets currently operates on Ethereum Mainnet. | | **Ethereum Mainnet** | The primary Ethereum network where transactions occur. | | **ERC-20** | The standard for fungible tokens on Ethereum. USD1, WLFI, and most assets on WLFI Markets follow this standard. | | **BEP-20** | The token standard on Binance Smart Chain, similar to ERC-20. | | **SPL** | The token standard on the Solana blockchain. | | **Chainlink** | A decentralized oracle network that provides price feeds and other external data to smart contracts. | | **CCIP** | Cross-Chain Interoperability Protocol. Chainlink's solution for secure cross-chain token transfers. Used by USD1 and WLFI for multichain support. | | **Block Confirmation** | The process of a transaction being included in a block and validated by the network. More confirmations mean higher transaction finality. | | **Block Explorer** | A tool for viewing blockchain transactions, addresses, and smart contracts. Etherscan is the primary explorer for Ethereum. | *** ## Activity and transactions | Term | Description | | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Activity** | A record of all transactions performed by your wallet linked to third party providers accessed on WLFI Markets, including supplies, borrows, withdrawals, and repayments. | | **Transaction History** | A chronological list of all your interactions with third party protocols on WLFI Markets, viewable on the Activity page. | | **Transaction Hash** | A unique identifier for a blockchain transaction. Used to look up transaction details on a block explorer. | | **Export** | The ability to download your transaction history in CSV or JSON format for record-keeping or analysis. | *** ## Security and compliance | Term | Description | | -------------------- | ------------------------------------------------------------------------------------------------------------------------- | | **Terms of Service** | The legal agreement users must accept to use WLFI Markets. Accepted by signing an EIP-712 message on first use. | | **Audit** | A security review of smart contract code by independent third parties to identify vulnerabilities. | | **Risk Disclosures** | Important information about the risks associated with using DeFi protocols and holding digital assets. | | **GENIUS Act** | A U.S. legislative framework for stablecoin standards that USD1 is intended to comply with. | | **KYC** | Know Your Customer. Identity verification processes required by regulated entities. May apply to certain USD1 activities. | *** ## Additional resources * [WLFI Markets Overview](https://github.com/worldliberty/public-docs/blob/main/wlfi-markets/overview.md) * [WLFI Markets Concepts](https://github.com/worldliberty/public-docs/blob/main/wlfi-markets/concepts.md) * [USD1 Information](/usd1-token/what-is-usd1.md) * [WLFI Governance](/wlfi-token/wlfi-governance.md) * [Dolomite Documentation](https://docs.dolomite.io) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.worldlibertyfinancial.com/get-started/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.