# Glossary {% hint style="info" %} The Glossary is continuously updated based on user questions and feedback. {% endhint %} *** ### 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**](https://docs.napier.finance/learn/protocols/markets-napier-amm/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**](https://docs.napier.finance/curate/napier-curation/create-market-napier-amm/resolver-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

Fee logic

Who gets the fees?


| | **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.