Glossary of Terms¶

Notice: You are reading the Single-Collateral Dai version of this Glossary. For the up-to-date version, visit the MCD Glossary.

A¶

B¶

Bite¶

the action of triggering a CDPs liquidation

Boom/Bust Spread¶

Discount/premium at which the system sells collateral PETH for DAI

Burn¶

the process of destroying MKR that are paid as stability fees

Burner Address¶

the public Ethereum address that escrows MKR prior to burning

C¶

CDP Portal¶

a front-end application with which you can interact with your CDP

CDP¶

Collateralized Debt Position, a collateral position holding locked Ethereum administered by a smart contract system

Collateral Claims¶

the amount of redeemable collateral Dai holders and CDP owners have claim to in the event of an Emergency Shutdown

Collateral¶

assets locked in a CDP

Collateralization Ratio¶

the ratio between a CDPs collateral and the Dai issued by that CDP

Continuous Approval Voting¶

a voting design that involves leaving your vote in the previous proposal

D¶

Dai Credit System¶

a name for the MakerDAO smart contract system

Dai¶

USD pegged decentralized stablecoin of the Dai Credit System

Debt Ceiling:¶

the maximum amount of Dai that can be generated in the Dai Credit System

Debt:¶

the amount of Dai generated through a CDP

Decentralized Risk Management¶

the cooperative interaction between Maker Token Holders and all Risk Teams to manage risks in MakerDAO

Development Fund¶

another name for the Maker Foundation’s multisig wallet that contains MKR, which is sold for operational expenses

Draw¶

the action of generating Dai from a CDP

E¶

Emergency Shutdown¶

a security feature that allows the system to shut down and make underlying collateral available for redemption

Executive Vote¶

a continuous approval vote that executes changes in the system if passed

F¶

Free¶

the action of releasing collateral from a CDP

G¶

Give¶

the action of transferring CDP ownership to a different Ethereum address

Governance Poll¶

a time-based vote to gather soft consensus

Governance Portal¶

a front-end application that allows you to interact with MakerDAOs on-chain governance

H¶

I¶

J¶

Join/Exit Spread¶

a system parameter that represents a discount or premium for converting between ETH and PETH

K¶

Keeper¶

external actors who perform various functions in the system

L¶

Liquidation Penalty¶

a penalty fee that's applied to a CDPs Dai balance when it is liquidated

Liquidation Price¶

lowest price per unit of collateral before a CDP is vulnerable to liquidation

Liquidation Ratio¶

a risk parameter defining the minimum Collateralization Ratio below which a CDP is vulnerable to liquidation

Liquidation¶

automatic sale of a CDPs collateral to cover its outstanding Dai

Liquidity Providing Contract¶

a smart contract which facilitates collateral sales

Lock¶

the action of placing collateral into your CDP

M¶

Maker Foundation Interim Risk Team¶

the first Risk Team whose role is to help bootstrap the Decentralized Risk Management function

Maker Foundation¶

the organization that created to develop and bootstrap the Dai Credit System

Market-Maker¶

an agent that provides liquidity to a market by offering to both buy and sell a given asset.

MCD¶

acronym for Multi Collateral Dai

Medianizer¶

the smart contract that collects price feed information from Price-Feed Providers and publishes a reference price for each asset

MKR¶

governance token of MakerDAO

Multi Collateral Dai¶

the upgraded Dai Credit System that utilizes multiple collateral types

N¶

O¶

Oracle Security Module¶

a security mechanism that delays the Oracle price feed

Oracle¶

a smart contract system which makes off-chain data, such as price data, available on-chain

P¶

PETH¶

a token representing pooled ether

Price-Feed Delay¶

a risk parameter that controls the delay of the Oracle price feed

Price-Feed Provider¶

operator of an Oracle that reports price data to the Medianizer

Proposal¶

a written plan put forward for a vote

Q¶

R¶

Reference Price¶

the authoritative asset price published by the Medianizer

Risk Construct¶

a collection of data, risk models, outputs, documentation, and analysis

Risk Model¶

an analytical model measuring and predicting risk, including the input data and output of the model

Risk Parameters¶

a set of configurable, risk-related, variables used to manage the system

Risk Team¶

an independent party who creates a Risk Construct for Maker Governance

S¶

SCD¶

acronym for Single Collateral Dai

Shut¶

action of closing a CDP by paying back outstanding Dai and the Stability Fee

Single Collateral Dai¶

the Dai Credit System which solely accepts ETH as collateral

Soft-peg¶

relating the target value of a cryptocurrency to the absolute value of a fiat currency, allowing for some variance

Stability Debt:¶

the amount of Dai generated through a CDP

Stability Fee¶

a variable Fee charged to a CDP for the creation and use of Dai, set by MKR holders through governance actions

T¶

Time-Based Voting¶

a voting design that ends a vote at a predetermined time

U¶

V¶

Voting Proxy¶

a smart contract that allows MKR token holders to vote with their hot wallets using MKR that is stored on their cold wallets