# Glossary

**MIM**

Magic Internet Money (**MIM**) is a stablecoin backed by interest bearing tokens issued by [**abracadabra.money**](https://abracadabra.money/)**! MIM** is native of the Ethereum Ecosystem and bridged to Avalanche through the Anyswap Network! Find out more about MIM [**here**](https://docs.abracadabra.money/spell-token/tokenomics#the-mim-token)**.**

**APR**

_Annual Percentage Rate_, is the annualized interest rate without taking the effect of compounding into account.

**APY**

_Annual Percentage Yield_, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

**BCV**

_Bond Control Variable_, is the scaling factor at which bond prices change. A higher BCV means a lower discount for minters and higher inflation by the protocol. A lower BCV means a higher discount for minters and lower inflation by the protocol.

**DAO**

_Decentralized Autonomous Organization_, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In **Life** the governance token is **sLIFE**, and we expect the voting page to be up as soon as possible, stay tuned!.

**DCV**

_Deflation Control Variable_, is the scaling factor at which protocol defined buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

**EVM**

_Ethereum Virtual Machine_, is a state machine in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has one and only one canonical state, and the EVM is what defines the rules for computing a new valid state from block to block. _Avalanche is an EVM Compatible Netwrok!_

**Liquidity Bonds**

_Liquidity bonds_ are all the bonds that allows users to mint LIFE using LP token. An Example is LIFE-MIM LP bonds.

**PCV**

_Protocol Controlled Value_, is the amount of funds the treasury owns and controls. The more PCV the better for the protocol and its users.

**POL**

_Protocol Owned Liquidity_, is the amount of LP the treasury owns and controls. The more POL the better for the protocol and its users.

**PoR**

_Proof of Reserve_, is the mechanism of strengthening the reserve of Life treasury via the sales of bonds (i.e Minting new LIFE). Minters provide liquidity to the treasury, thereby building its reserve. In return for their service, bonders get paid in LIFE.

**Reserve Bonds**

Reserve bonds are all the bonds that allows users to mint LIFE using single assets. They are sometimes referred to as "naked" bonds. Examples are **MIM** bonds.

**Reward Rate**

Reward rate is the configured percentage of **LIFE** distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

**Reward Yield**

Reward yield refers to the actual amount of **LIFE** received by each staker on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to e.g. fluctuating amounts of **LIFE** staked.

**Backing per LIFE**

_Backing per LIFE_, is the amount of funds the treasury guarantees to use for backing **LIFE**.

**LP**

_Liquidity Provider token_, is the token received when providing liquidity on DEXs. For instance liquidity bonds will require require LP tokens of the LIFE-AVAX pair from **Trader Joe**!.

**TVL**

_Total Value Locked_, is the dollar amount of all LIFE staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.

**TaaS**

_Treasury as a Service_, is the business model of decentralized custody of partnership funds. **Life** is designed for TaaS by selling bonds and absorbing partners' liquidity into its treasury as a result.

**TWAP**

_Time Weighted Average Price_, is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.

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