# Glossary

Key terms and concepts used throughout Foundation documentation.

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## Core Concepts

| Term                 | Definition                                                                                                            |
| -------------------- | --------------------------------------------------------------------------------------------------------------------- |
| **USD'** (USD Prime) | The base layer asset backed by fiat stablecoins (USDC, USDT) and RWAs. The shared liquidity layer for all strategies. |
| **Foundation Vault** | The core accounting engine that holds all collateral backing USD' and maintains global solvency.                      |
| **Rebalance Router** | Smart contract that enables atomic swaps between yield strategies via USD'.                                           |
| **Curator**          | An asset manager, DAO, or protocol builder who launches a yield strategy on Foundation.                               |
| **Strategy Dollars** | Yield-bearing tokens (PrimeUSD, ApolloUSD, OrdUSD) built on top of the USD' base layer.                               |

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## Yield Strategies

| Term                | Definition                                                                                               |
| ------------------- | -------------------------------------------------------------------------------------------------------- |
| **PrimeUSD**        | Conservative yield strategy that optimizes returns across DeFi lending markets (Aave, Morpho, Compound). |
| **ApolloUSD**       | Moderate-risk strategy providing exposure to RWAs (Treasury Bills) and private credit via Acred.         |
| **OrdUSD**          | Higher-yield delta-neutral strategy capturing perpetual futures funding rates via Orderly Network.       |
| **Strategy Shares** | ERC4626 vault tokens representing ownership in a yield strategy. Share value increases as yield accrues. |

***

## Technical Terms

| Term                   | Definition                                                                                                                           |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------ |
| **ERC4626**            | Ethereum standard for tokenized yield-bearing vaults. Provides consistent interface for deposits, withdrawals, and share accounting. |
| **T+0 Settlement**     | Instant settlement in the same block as the transaction. Foundation enables T+0 rebalancing between strategies.                      |
| **Virtual Settlement** | Internal ledger update that credits one strategy and debits another without physical token transfers.                                |
| **Liquidity Buffer**   | 5-10% of strategy TVL held in liquid stablecoins to enable instant withdrawals from illiquid underlying assets.                      |
| **Delta-Neutral**      | Position that has no directional exposure to price movements. Achieved by holding equal long spot and short perpetual positions.     |

***

## Risk Terms

| Term                      | Definition                                                                                                                    |
| ------------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **NAV** (Net Asset Value) | The total value of a strategy's assets minus liabilities, divided by shares outstanding. Represents the fair value per share. |
| **Slippage**              | The difference between expected and executed price. Foundation's atomic swaps have 0% slippage.                               |
| **Funding Rate**          | Periodic payments between long and short perpetual futures traders. OrdUSD captures these payments.                           |
| **Collateral Factor**     | The percentage of deposited collateral that can be borrowed against in lending protocols.                                     |

***

## Financial Terms

| Term                              | Definition                                                                                                                         |
| --------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| **APY** (Annual Percentage Yield) | The annualized rate of return including compounding.                                                                               |
| **TVL** (Total Value Locked)      | The total value of assets deposited in a protocol or strategy.                                                                     |
| **RWA** (Real World Assets)       | Tokenized representations of traditional financial assets like Treasury Bills, bonds, and private credit.                          |
| **Cash Drag**                     | The opportunity cost of holding idle cash instead of deployed capital. Foundation minimizes this through shared liquidity buffers. |


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