Glossary

Look up a term from the YieldBasis docs here. Each entry gives a short definition and a link to the page that explains the term in depth.

Entries marked "(pool policy)" apply only to a pool that runs the oracle-report policy. For how that policy works and which pools run it, read Pool policies.

A

admin fee: the part of LT's value gains, after watermark recovery, that goes to the FeeSplitter. Its share follows a square-root curve in the staking ratio. The FeeSplitter sends a DAO-set share to the net-pressure reserve and the rest to veYB holders. See Fees and veYB revenue.

AMM: automated market maker. In YieldBasis, the leveraged AMM of each market is LEVAMM, and its contract name is AMM. See LEVAMM.

arbitrageur: external trader who closes price gaps for profit, on LEVAMM (through VirtualPool) or on the Curve pool. A LEVAMM trade moves the position back toward 2× leverage. See Arbitrage and MEV.

B

base fee (pool policy): lowest swap fee of the policy, for a corrective swap with a fresh price report.

borrow interest: the interest that a market pays on its crvUSD debt inside LEVAMM. The YB DAO sets the rate per market. Once LT collects the interest to donate it (refueling), the docs call it borrower interest. See What you pay in Compounding leverage.

bucket: a part of the market value that LT accounts for separately: staked, unstaked, or admin fees. LT.liquidity() stores total, staked, ideal_staked (the watermark), and admin. See Deposit flow.

C

capture (pool policy): share of a swap's edge above the base fee that the pool keeps as fee.

compounding leverage: continuous maintenance of a constant leverage ratio. At 2× on a Curve LP position, it straightens the concave LP value curve. See Compounding leverage.

corrective swap (pool policy): a swap that moves the pool's marginal price toward the price report and does not pass it. Only a corrective swap can pay less than the fallback fee.

crvUSD: Curve's over-collateralized stablecoin, and the debt side of every LEVAMM position.

Cryptoswap: Curve's dynamic-peg AMM family (Twocrypto and Tricrypto), in which YieldBasis holds its positions. The pool protects part of its fee profit for LPs (lp_xcp_profit). That part is half on the older pools of markets 0 to 6, and a Curve DAO setting on v3 pools. See Fees and veYB revenue.

E

edge (pool policy): gain of a swap at the price report, before fees: 1 − value_in / value_out, with 1 crvUSD counted as $1. A swap with an edge of 0 or less pays the fallback fee.

e-folding time: the time in which the remaining YB emission reserve shrinks by a factor of e. It is 4 years when every gauge is fully staked, and longer when the rate factor is lower. See Emission dynamics.

EMA (exponential moving average): an average that gives more weight to recent observations, so one new price changes a long EMA only a little. A Curve pool's price_oracle is its own EMA of trade prices. See Oracle design.

Emissions APR: the YB emissions that a gauge pays to staked yb-LP, valued in USD and quoted as an annual percentage rate (APR, not compounded). The app shows it as Token APR. Never add it to Fundamental yield for one position. See Staked and unstaked economics.

F

Factory: the contract that deploys each market (LT, LEVAMM, VirtualPool, LP oracle, and gauge) in one transaction. Its constant sets 2× leverage for all markets.

fallback fee (pool policy): the fee when no discount applies, and the highest fee of the policy. LT deposits and withdrawals pay half of it on the imbalanced part.

FeeDistributor: the contract that receives the admin fees that the FeeSplitter does not send to the net-pressure reserve. It pays them to veYB holders as veYB fee revenue, in the yb-LP tokens of the current token set. See Fees and veYB revenue.

FeeSplitter: the contract that receives admin fees (Factory.fee_receiver()). When LT collects admin fees, it mints yb-LP of that market to the FeeSplitter. The FeeSplitter sends a DAO-set share (split_fraction()) to the net-pressure reserve and the rest to the FeeDistributor. See Fees and veYB revenue.

Fundamental Value: the user-facing name for PPS, the per-share value that the vault accounts at the oracle price (LT.pricePerShare()). It resists sandwich attacks. See Fundamental Value, Redemption Value, and TRD.

Fundamental yield: Fundamental Value growth from trading fees, which only unstaked yb-LP earns, quoted as a net annual percentage yield (APY) after borrow interest and rebalancing cost. The app shows it as FT APY. Never add it to Emissions APR for a gauge staker. See Staked and unstaked economics.

G

gauge: per-market staking contract (LiquidityGauge) that takes yb-LP, mints ERC-4626-style gauge shares, and pays YB emissions plus up to 7 custom reward tokens. See Gauges and emissions.

gauge voting: veYB holders allocate emission weight across gauges. Votes apply instantly, with a 10-day cooldown per gauge. See Gauges and emissions.

H

Hybrid Vault: per-address vault that lets you deposit into a market beyond its standard deposit cap. In exchange, you keep proportional crvUSD backing in an allowlisted ERC-4626 vault (scrvUSD by default). The YB DAO sets the stablecoin fraction (stablecoin_fraction), the crvUSD backing that the vault requires for each unit of position value. For the current fraction, read Hybrid Vaults.

I

ideal_staked: the contract name for the watermark. It rises when yb-LP is staked and falls in proportion when yb-LP is unstaked. It does not fall when the staked side takes a loss. See Watermark and recovery.

impermanent loss (IL): the shortfall of an LP position against holding the deposited assets, from the concave $\sqrt{p}$ shape of the LP value curve. With 2× leverage, a yb-LP share keeps full price exposure to BTC or ETH. See Volatility decay.

K

kill switch (pool policy): set_killed on YBOraclizedPolicy, which the YB DAO or the Curve Emergency DAO can call. It differs from the market kill switch on LT. A killed policy gives the pool its native fee and target, refuses price reports, and turns off the LT deviation check.

L

lending oracles: contracts that price yb-LP shares for lending markets that accept yb-LP as collateral. LEVAMM does not use them. See Lending oracles.

LEVAMM: the leveraged automated market maker (AMM) of a market. It holds Curve LP tokens as collateral and crvUSD as debt, and arbitrage keeps it near 2× leverage. Its contract name is AMM. See Compounding leverage.

LEVAMM book: the current debt of LEVAMM (AMM.get_debt()) and its LP collateral (AMM.collateral_amount()). The LT deviation check compares the debt that a deposit adds with the ratio of the two. See Dev: LT.

LiquidityGauge: the gauge contract, an ERC-4626-style wrapper over yb-LP shares. See gauge.

LP (Curve LP): liquidity provider tokens of a Curve Cryptoswap pool. LEVAMM holds them as collateral.

LP oracle: the YieldBasis contract (CryptopoolLPOracle) that returns the USD value of one Curve LP token. LEVAMM uses that value. See oracle price and Oracle design.

LT: the market's vault contract, which mints yb-LP. It is ERC-4626-like but not strictly compliant. See Dev: LT.

LT deviation check (pool policy): the policy's check that the debt a yb-LP deposit adds matches the LEVAMM debt-to-collateral ratio within ratio_tolerance. If it does not match, the deposit reverts with LT deviation. The check also applies to Hybrid Vault deposits and LTMigrator migrations. For the exemptions, read LT deviation check in Pool policies.

N

net-pressure reserve: the reserve of the MerklPIDDriver, which receives a DAO-set share of admin fees from the FeeSplitter. The driver converts the fees to crvUSD, and the reserve limits what the Merkl campaign for crvUSD liquidity can pay out. See Net pressure and the PID controller.

O

oracle price: USD price of one Curve LP token that LEVAMM uses, from the pool's virtual_price and price_scale and the crvUSD aggregator price. A flash loan cannot move these inputs far within one block. See Oracle design.

oracle-report policy: the pool policy YBOraclizedPolicy. It prices each swap against a signed USD price report of the pool asset, and it uses the same reports to steer the price_scale target. The entries marked "(pool policy)" describe it. See Pool policies.

P

permalock: a 4-year YB lock with no decay, also called an "infinite lock", which keeps full veYB power. You can turn it on and off, and transfer it to another permalocked position under strict conditions. See veYB.

pool policy: a contract that a Curve pool calls to set its swap fee, its price_scale target, or both. To see which policy a pool runs, call POLICY() on the pool. See Pool policies.

PPS (price per share): the short name for Fundamental Value in app labels and on developer pages: the vault's oracle-priced value per share, LT.pricePerShare(). See Fundamental Value.

PPS drag: slow or negative Fundamental Value growth because the rebalancing cost outran fee income. Only future fees that outpace the future rebalancing cost recover it. It differs from TRD and from a watermark shortfall. See What you pay in Compounding leverage.

price report (report) (pool policy): a signed Pyth Pro price that a trader delivers to the policy. Swaps can use it for the fee until the relax time. The policy uses it for the price_scale target until the report lifetime.

price_scale: Cryptoswap's internal price, around which the pool concentrates liquidity. It moves toward its target in limited steps, at most once per block, when the profit floor allows.

price_scale target: the price that price_scale moves toward. Without a policy, it is the pool's own EMA, price_oracle. With a policy, the policy sets it, within 20% of price_oracle.

profit floor: the protected part of a Curve pool's lifetime profit, per LP token (lp_xcp_profit). The pool recenters price_scale only if per-LP value stays above the floor. The reserved profit fraction sets how much profit goes to the floor. See Fundamental Value, Redemption Value, and TRD.

profit test: the Curve pool check vp_boosted > lp_xcp_profit, which an operation must pass to move price_scale. See profit floor.

Pyth Pro (Pyth Lazer) (pool policy): Pyth's signed low-latency price service. The policy accepts USD price reports of the pool asset that Pyth's onchain verifier checks.

R

rate factor: the sum of adjusted gauge weights divided by the sum of raw weights, a number from 0 to 1. It scales the YB emission rate: at 1, emissions run at the maximum rate. See Gauges and emissions.

rebalance budget: the part of a Curve pool's fee profit above the reserved profit fraction. The pool can spend it to recenter price_scale, and it stays in LP value until a rebalance spends it. Analytics labels it Rebalance Reserve. See Fees and veYB revenue.

rebalancing cost: cost of moving price_scale or of keeping LEVAMM at 2× leverage. Each arbitrage trade pays the arbitrageur a spread, and the total of these payments is the rebalancing cost. Refueling offsets it with borrower interest. When the cost outruns fee income, the result is PPS drag. See What you pay in Compounding leverage.

Redemption Value: what you receive if you withdraw now, LT.preview_withdraw(shares), from the live state of the Curve Cryptoswap pool. Its signed gap to Fundamental Value is TRD. See Fundamental Value, Redemption Value, and TRD.

refueling: LT collects all crvUSD borrower interest from LEVAMM and donates it to the Curve Cryptoswap pool to fund rebalancing. It is a closed loop between leverage cost and rebalance subsidy, not a separate return to LPs. See Refueling in Fees and veYB revenue.

relax time (pool policy): price report age at which the fee discount ends. The fee rises toward the fallback fee by the square root of the age.

report lifetime (pool policy): price report age at which a report stops steering the price_scale target.

reserved profit fraction: the share of a Curve pool's fee profit that recentering cannot spend, so at least that share stays with LP holders. On v3 pools, Curve governance sets it per pool, and reserved_profit_fraction() on the pool returns it. The rest of the profit is the rebalance budget. See Fees and veYB revenue.

S

scrvUSD: Curve's savings-crvUSD ERC-4626 vault, the default backing for Hybrid Vaults. Any allowlisted ERC-4626 crvUSD vault can be the backing.

staked yb-LP: yb-LP in a LiquidityGauge. It earns only YB emissions and can fall below its watermark. See Staked and unstaked economics.

staking ratio: staked / total_supply of an LT. It sets the admin fee and the per-gauge emission adjustment.

step cap (pool policy): largest move of the price_scale target that the policy requests at one time. The policy requests half the gap to its target, at most the step cap.

T

Temporary Redemption Discount (TRD): the signed gap between Redemption Value and Fundamental Value. A negative TRD is a discount, and a positive TRD is a premium. A discount is common during high volatility or drawdowns, and arbitrage reduces it over a time that is not fixed. See Fundamental Value, Redemption Value, and TRD.

term lock: a veYB lock with an unlock date. Its voting power decays linearly toward zero at the unlock date, unlike a permalock. See veYB.

trend gate (pool policy): the relative gap between the fast and slow EMAs at which the price_scale target reaches the observed price. See price_scale target in Pool policies.

U

unstaked yb-LP: yb-LP in your wallet. It earns Fundamental Value growth and no YB emissions, and you can transfer it as an ERC-20 token.

V

verifier (pool policy): the Pyth contract that checks price report signatures, and so decides which prices the policy accepts. The YB DAO can replace it.

veYB: vote-escrowed YB, an ERC-721 NFT that you get when you lock YB for 1 week to 4 years (linear decay) or permalock it. It gives governance votes, gauge votes, and a weekly share of admin fees in yb-LP tokens. See veYB.

veYB fee revenue: the share of admin fees that the FeeDistributor pays to veYB holders. Fees arrive in yb-LP tokens every Thursday 00:00 UTC, smoothed over 4 weeks. The docs state it as a share and a cadence, not as an annual rate. See Fee revenue share in veYB.

VirtualPool: the contract that wraps LEVAMM, the Curve Cryptoswap pool, and a flash loan to offer direct crvUSD↔asset swaps. It is the arbitrage path, because LEVAMM does not trade directly against users.

volatility decay: the net rebalancing cost that LEVAMM pays to arbitrageurs as the price moves, partly offset by refueling. It is closest in meaning to loss-versus-rebalancing (LVR), and it differs from impermanent loss. See Volatility decay.

W

watermark: the staked value that the gauge must regain after losses before LT charges an admin fee on new gains (ideal_staked). Below the watermark, while the gauge holds at least 0.01 yb-LP, LT charges no admin fee on new gains until they close the gap. That gap is the watermark shortfall. See Watermark and recovery.

watermark shortfall: the gap below the watermark after losses on the staked side. See watermark.

Y

YB: the YieldBasis governance token (ERC-20), deployed 15 September 2025, with a maximum supply of 1,000,000,000 YB. Lock it into veYB to vote and earn admin fees. See YB token.

YB DAO (YieldBasis DAO): the DAO of veYB holders that governs YieldBasis. See Proposals.

yb-LP: ERC-20 vault share that LT mints, a pro rata claim on a 2×-leveraged Curve LP position inside LEVAMM. Both unstaked yb-LP and gauge shares are transferable. See yb-LP tokens.

ybBTC / ybETH: informal names for the yb-LP tokens of BTC-pair or ETH-pair markets. The docs use yb-LP, or the token symbol of one market, such as yb-cbBTC or yb-WETH.