Definitions

Terminology for the Ike Protocol

• Gas Token: The native token for a given blockchain. For example, the Gas Token on Aleph Zero is AZERO. For more info, please review the page on Proof-of-Stake Blockchains.

• sToken: A general form for Liquid Staking Tokens. sTokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem Gas Tokens during the unstaking process.

• sA0: Ike's Liquid Staking Tokens. sA0 serve as a receipt entitling the holder to their share of the Total Pool in the Vault. sA0 tokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem AZERO during the unstaking process.

• Validator: an entity on the blockchain that stakes Gas Tokens (AZERO), validates transactions on behalf of the network, and is rewarded with yield on their Gas Tokens in return for the service. For more information, see Proof-of-Stake Blockchains.

• DEX: Abbreviation for a Decentralized Exhange.

• Bonding / Unbonding: A process by which tokens can be "frozen" in exchange for some other benefit. This is commonly used to refer to the process by which the blockchain locks tokens up, or unlocks them, during the staking process. It can sometimes be used interchangeably with the terms "staking" and "unstaking".

• Delegation (aka Nomination): Also sometimes referred to as "nomination", this is the process by which a user "delegates" another entity to do something on their behalf. In the case of Liquid Staking, users can "delegate" a "Delegation/Nomination Pool" to stake their tokens on their behalf with a Validator. Note that Ike does not use Nomination Pools, but rather nominates directly yo Validators.

• Total Pooled: The sum of all AZERO currently deposited in the Vault, plus all yield that has been compounded during network staking.

• Total Shares: Denotes the total outstanding supply of sA0 plus the number of Virtual Shares eligible to be claimed by the DAO.

  • Total Virtual Shares: This represents the revenue entitled to the DAO. It denotes the number of sA0 that are eligible to be minted during the DAO Revenue Redemption Process. These are tracked on the Vault.

  • Total Shares Minted: The total outstanding supply of sA0. sA0 are minted during the staking process and are burned during the unstaking process.

• Redemption Ratio: This is the ratio of totalPooled / totalShares. This ratio can be calculated at any time and is used to inform how many AZERO can be redeemed by a user for each sA0 token they submit during the un-staking process. This ratio can also be used by market makers to keep exchange rates honest on DEXes. Note: the Redemption Ratio is not stored as a variable, however theVault contract contains methods to calculate it in both directions (from sA0 to AZERO, and vice versa).

• Era: A blockchain-native construct denoting the period that the Validator set (and each Validator's active delegator or nominator set) is recalculated and where staking rewards are paid out to Validators.