Our new article, Introducing Napier AMM, is already live!
LearnCurateBuildInvestBlogLaunch App

Glossary

The Glossary is continuously updated based on user questions and feedback.

General Concepts

  • Yield-bearing Asset: Any token that generates yield. Often referred to as the Underlying Asset.

  • Asset: Base assets used to value the underlying assets (E.g, USDC)

  • Yield Tokenization: The process of splitting a yield-bearing token into two parts: PT (Principal Token) and YT (Yield Token).

  • PT (Principal Token): Represents the principal portion of the underlying asset.

  • YT (Yield Token): Represents the right to receive yield generated by the underlying asset.

  • Maturity Date (Maturity): The date on which the principal of a yield-bearing token or debt instrument becomes due.

  • User: Any individual interacting with Napier for trading, yield, or liquidity activities.

  • Curator: A participant responsible for managing, optimizing, and maintaining yield markets.

Interface Columns

Yield

  • Net APY: Overall annualized yield including rewards and yield-bearing tokens.

  • Fixed (Yield) APY: Guaranteed APY from holding PT; equal to Implied APY.

  • Effective Fixed APY: The fixed APY based on the actual execution rate after price impact and fees.

  • Fixed Maturity Profit: Profit at maturity, expressed in the underlying token.

  • Long (Yield) APY: Estimated annualized return from holding YT assuming the underlying APY remains constant (can be negative).

  • Yield (Point) Leverage: Amplified exposure to yield or points via YT positions.

  • Interest APY: 7-day moving average yield of the underlying asset.

  • Reward APR: Estimated APR of reward tokens; not auto-compounding.

  • Implied APY: Market’s consensus on the future APY, derived from the YT/PT price ratio. Equivalent in value to Fixed Yield APY.

  • Effective Implied APY: Implied APY calculated from the user’s actual trade rate.

Incentives

  • Point: Offchain incentives distributed to users.

  • Boost (Multiplier): A multiplier (e.g., 2x, 5x) that increases point distribution.

  • Rewards: Additional tokens or point incentives for participating in pools.

Market & Network Info

  • Chain (Network): The blockchain on which a protocol or asset operates.

  • PT and YT TVL: Total value locked in the specific PT or YT.

Builders Attributes

  • Builders are entities like asset issuers and curators, that create Investment packages through Napier’s vertical integration model.

  • Markets refer to the core PT/YT and AMM components of the Napier protocol.

  • Investments are vertically integrated packages that combine the Protocol Layer, Connectivity Layer, and Product Layers around Napier Markets to fit real-world use cases. (E.g. IPOR Fusion PT Looping Vault available on Robinhood)

Market Attributes

Status

  • Active: Market currently operating.

  • Matured: Market has reached maturity.

  • Paused: Temporarily or permanently halted by a curator.

Type

  • Verified: Created by a verified curator.

  • Unverified: Created without verification.

  • Unstoppable: Immutable market (all curator permissions renounced except Fee Collector).

  • Banned: Flagged as inappropriate or malicious.

Additional Info

  • Issuance Cap (Limit): Maximum mintable amount of a PT/YT pair.

  • Created At: Date when a market was deployed by its curator.

  • Status & Roles: Permissions assigned to manage or control market functions.

Implied APY Range

The Implied APY Range is a custom setting defined by curators in Napier AMM. By specifying this range, curators can:

  • Maximize capital efficiency by concentrating liquidity around realistic yield expectations.

  • Minimize impermanent loss (IL) by limiting exposure to extreme rate movements.

To learn more about how range concentration works, see: Concentrated Liquidity

Rehypothecation

Rehypothecation in Napier allows pools to deploy idle assets into external yield vaults (e.g., Morpho, Euler, or IPOR Vaults) while keeping those assets fully available for trading in the AMM.

This design increases capital efficiency by putting unutilized liquidity to work without compromising on-chain liquidity depth.

For detailed mechanics and setup, see: Rehypothecation

Resolver

A Resolver is a contract that returns the exchange rate between vault shares and their underlying assets.It is used by the AMM and other modules to accurately value collateral or vault positions in real time.

To learn more about how to set resolvers, see: Reslover Selection

Roles and Permissions

Role
Description

Super Admin

Held by Napier Governance; ultimate authority over protocol and treasury.

Treasury

Recipient of Napier Protocol fees.

Napier Developer

Developer multisig managed by Napier Labs.

Fee Distributor / Converter / Collector

Manage, convert, and collect protocol fees.

Curator

Market owner responsible for assigning and managing roles.

Fee Manager

Sets PT fee parameters.

Fee Collector / Receiver

Collects or receives fees.

Protocol Pauser

Can pause a PT in emergencies.

Napier Labs holds no authority over any market. Each PT/YT market is independently managed by its curator.

  • Delegation: A curator assigning specific roles to other accounts.

  • Renounce: A curator permanently giving up all roles in a market.

Fees and Economics

Fee Type
Description

Issuance Fee

Percentage fee when minting new PT and YT.

Redemption Fee

Percentage fee when redeeming PT and YT back to underlying assets.

Performance Fee (Before Maturity)

Percentage of yield accrued (including points) from active YTs. Example: 10% of 3% APY ≈ 0.3% of notional.

Performance Fee (After Maturity)

Percentage of yield accrued from unredeemed matured PTs.

Swap Fee (Napier AMM)

Definition

  • The swap fee is a dynamic percentage applied to each swap, denominated in the underlying token.

Fee logic

  • Fees are charged on the yield-receivable portion of PT.

  • This makes fees scale fairly across maturities:

    • Longer to maturity → larger yield receivable → higher fee

    • Shorter to maturity → smaller yield receivable → lower fee

Who gets the fees?

  • At pool creation, the curator sets reserveFeePct = LP share vs Curator/Protocol share.

    • LPs receive their portion pro-rata to their liquidity.

  • The Curator/Protocol split (splitFeePct) is governed by Napier Governance

    • Currently: 100% Curator (Protocol 0%).

  • Curators should tune shares to balance their revenue and LP attractiveness for sustainable growth.

Fee Switch (Fee Distribution ratio)

All fees generated by the Napier Protocol are distributed according to the curator/protocol fee split ratio (splitFeePct), which is governed by Napier Governance. Currently, the split is set to 100% to curators and 0% to the protocol.

During bootstrap:

  • Curator : User = 100% : 0%

  • Napier Points = 20% : 80%

Pool Metrics

  • TVL (Total Value Locked): Total assets deposited in Napier Protocol.

  • Pool TVL: Liquidity within a specific pool.

  • Volume: Total trading volume over time.

  • Pool Volume: Amount traded within a specific Napier pool.

  • Pool APY: Overall APY on LP positions after all fees and rewards.

  • Gauge: Mechanism that adjusts reward distribution based on participation.

Slippage & Transaction Settings

  • Max. Slippage: Maximum deviation between expected and executed price.

  • Auto: Automatically adjusts slippage tolerance to market conditions.

  • Custom: Lets users manually set slippage tolerance.

  • Min. Received: Minimum expected amount after slippage.

  • Transaction Deadline: Time limit before a transaction expires.

  • Last Updated: Timestamp of the most recent data refresh.

Yield-Bearing Token (YBT)

  • Conversion Rate: Ratio at which input tokens convert to output tokens.

Performance Metrics

  • Current AUM: Current assets under management by a curator.

  • Cumulative AUM: Total historical value managed since inception.

  • Cumulative Fees Earned: Total fees collected across all markets.

  • Underlying Asset TVL: Value locked in underlying assets across the protocol.

PreviousFrequently Asked Question (FAQ)NextCalculation

Last updated

Was this helpful?