Definitions

Terminology for the Kintsu Protocol

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

• sToken: The general form for Kintsu's Liquid Staking Tokens. sTokens serve as a receipt entitling the holder to their share of the Total Pool in the Vault. The sTokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem Gas Tokens during the unstaking process.For example, on Aleph Zero, where the Gas Token is AZero, Kintsu's LST is called sAZero

• Validator: an entity on the blockchain that stakes Gas Tokens, 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: 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 Pool" to stake their tokens on their behalf with a Validator.

  • Delegation Pool: These are network-native entities to which users can "delegate" their Gas Tokens for staking. These Delegation Pools can then nominate one or more Validators to stake and validate on their behalf.

• Nomination: Also sometimes referred to as "delegation", this is the process by which a user "nominates" another entity to do something on their behalf. In the case of Liquid Staking, users can "nominate" a "Nomination Pool" to stake their tokens on their behalf with a Validator.

  • Nomination Pool: These are network-native entities to which users can "nominate" their Gas Tokens for staking. These Nomination Pools can then nominate one or more Validators to stake and validate on their behalf. For more information, see the Polkadot's Wiki's page on Nomination Pools.

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

• Total Shares: Denotes the total outstanding supply of sTokens 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 sTokens 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 sTokens. sTokens 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 Gas Tokens can be redeemed by a user for each sToken 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 sTokens to Gas Tokens, 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.