Definitions

Directory of terms in the GARD Protocol

General Definitions

Address

This is your wallet's public address. It is composed of a bunch of alphanumeric characters and it is derived from your private key. Imagine it is like your IBAN where you can receive cryptocurrencies.

APR

Annual Percentage Rate is the rate of interest applied on an amount per year. APR tells you how much interest you’ll receive at the end of the year. In terms of loans, APR will tell you how much interest accrues to the amount you borrowed over a year.

APY

Annual Percentage Yield is the actual rate of return earned on an investment, considering the compound interest.

ASA

The Algorand protocol supports the creation of on-chain assets that benefit from the same security, compatibility, speed and ease of use as ALGO. The official name for these assets on the Algorand blockchain is Algorand Standard Assets (ASA).

Algorand Standard Assets can represent stablecoins, loyalty points, system credits, and in-game points just to name a few examples. ASAs can also represent single, unique assets like a deed for a house, collectable items, unique parts on a supply chain, etc. There is also optional functionality to place transfer restrictions on an asset that help support securities, compliance, and certification use cases.

Learn more about ASAs here.

Collateral

The user must lock all or part of a deposited asset to obtain a loan. The collateral committed to obtaining the loan will be locked in a smart contract.

dApp

A dApp is a decentralized application whose code runs on a peer-to-peer network like blockchains instead of centralized servers.

Opt-in

All of the tokens supported by the Folks Finance protocol are ASAs (Algorand Standard Assets). Thus, the opt-in operation is required before acquiring them. The Opt-in procedure has to be performed once per token if the asset has not previously been held in the wallet. Folks Finance will warn users if the opt-in procedure has not been performed, and support them through the opt-in process. Once all of the requirements are fulfilled, users are ready to interact with the protocol.

CDP

Collateralized Debt Position: Smart contract accounts that can be used to mint GARD in the GARD Protocol via collateral in ALGO.

ALGO

The Algo is the native token of the Algorand blockchain, and is one of the most versatile tokens in crypto.

GARD:

GARD is decentralized money that is backed by intrinsically valuable i.e. useful assets. Its initial purpose was to allow a sort of liquid governance solution for Algorand governors and as a store of value for those who received it. In other words those who sought to gain leverage with it would be able to go out and redeem GARD as they chose while those who accepted it knew the promise that GARD would always be backed by at least USD $1 of collateral in ALGOs. Now GARD is meant to be all that and more and may not always be pegged to $1 but rather another asset that is a better store of value/more stable in the future.

GARDIAN

GARDIAN is a loyalty token designed to reward active participants in the GARD Protocol with ownership from day one. GARDIAN token is a loyalty/voucher ASA that will be later redeemable for the GAIN token on April 15, 2025. There will be a total of 1,000,000,000 GARDIAN tokens minted that will be equivalent and later convertible to 5% of the total GAIN token supply (100,000,000 tokens). These tokens will be distributed by our protocol and other ecosystem partners to promote the growth of the GARD Protocol and broader Algorand community while making a commitment to decentralizing our protocol from day one. If more GARDIAN are minted in the future to fulfill the same purpose, they will be redeemable for GAIN at the same ratio. Also, if our protocol decides to discontinue the incentive program all tokens will be burned.

GAIN

GAIN is the token that governs the GARD Protocol. Those who hold GAIN will be able to vote on changes to the GARD protocol, vote on the fees that GARD users are charged, vote on and enact the protocol’s monetary policy in regard to staking, vote on where to source pricing data from, vote on assets to add as collateral, and vote on the organization that will protect/further develop the protocol. GAIN will be decentralized so the DAO can make the best decisions for its future without founder interference. See the DAO section for more details, including technical functionality and initial votes. GAIN will allow users which have participated in the governance process to receive rewards from participation in protocol governance, which would entitle them to a portion of the TVL of GARD claimed as protocol fees locked in the Treasury. Users which have fulfilled certain participation thresholds (e.g. voting turn-out, proposal submission) are able to extract the rewards they are entitled to by exchanging their tokens with the Treasury and the Treasury will send the token holder the GARD earned. GAIN tokens in the Treasury are out of circulation; there is no way for GAIN tokens to leave the Treasury smart contract account (unless governance votes otherwise).

ALGO Derivatives:

The team behind the GARD Protocol believes that ALGO has intrinsic value. This intrinsic value is derived from the sheer utility of the Algorand token that is promised to holders of ALGOs. This is why GARD has value and this is why the team will work to incorporate gALGO, vALGO, wALGO, cALGO, and other wrapped ALGOs as collateral.

gALGO

gALGO (Governance ALGO) is a wrapped version of ALGO, minted by Folks Finance and that allows users to participate in Algorand Foundation Governance while maintaining a substantial degree of liquidity. In other words, it is the Folks Finance Algorand Governance token and it is minted, at a one-to-one rate with the committed original ALGO in the Folks Finance platform. Therefore, users who minted gALGO during any relevant Governance commitment period are eligible to participate in the Algorand Foundation Governance and any Folks Finance proposals related to it. Users can use their gALGO freely in the ecosystem: for example as collateral on Folks Finance, to interact with DEXs, to purchase NFTs, and so on.

Wrapped Assets:

The team believes that wrapped assets will also play a role in expanding GARD’s footprint in due time.

Additional Future Assets:

The GARD DAO composed of GAIN token holders will be able to vote on future assets to be added as collateral to borrow GARD against.

HOME PAGE DEFINITIONS

Total Value Locked

The total value, denominated in USD, of all assets held in the GARD Protocol’s smart contracts.

Total GARD Borrowed

The total value of GARD that has been borrowed against the valuable assets deposited in the protocol’s non-custodial smart contracts denominated in USD.

Staking APY

The current yearly return expected to be earned via no-lock staking given the current participation and reward rate and is subject to change.

Number of Users

The number of protocol users is defined as the number of unique Algorand accounts currently borrowing or staking GARD.

GARD Intrinsic Value

The amount of collateral denominated in USD per GARD borrowed.

GARD Borrow APY

The amount of interest a user should expect to pay (in GARD) over a year of keeping a borrow position open.

GARD Governors

Number of unique addresses that have committed to governance via GARD Protocol.

GARD Governance APY

Expected return of users who commit to governance via the GARD Protocol.

SWAP PAGE DEFINITIONS

Price Impact

Your swap will cause a change in the relative price of the assets found in this pool. The more value you wish to swap, the higher the price impact will be.

Exchange Rate

The units of asset A required to exchange for one unit of asset B.

Liquidity Fee

The fee charged by the pool to execute your swap.

Slippage Tolerance

The difference between the expected price paid and the actual price paid to exchange assets. If the difference exceeds this rate the trade will not go through.

Fee Rate

The fee charged by the pool is represented as a percent of the value exchanged.

Minimum Received

The minimum amount of the asset you receive that you’re swapping into. This value is a function of your slippage tolerance, price impact, and other trades potentially happening simultaneously.

POOL PAGE DEFINITIONS

Exchange Rate

The units of asset A required to exchange for one unit of asset B.

Fees Received

The percentage of each transaction you will receive relative to your share of the pool.

Current Liquidity Tokens

How many tokens representing ownership of the assets in the pool are currently outstanding.

New Liquidity Tokens

How many liquidity tokens will be outstanding from the pool after you provide liquidity.

Current Pool Share

Your share in the ownership of the pool as reflected by liquidity tokens currently held in your connected Algorand account.

New Pool Share

Your share in the ownership of the pool after you deposit your assets.

STAKING PAGE DEFINITIONS

Liquidity Amount

Total value locked in staking pool.

Type

Asset staked and assets received.

Duration

How long you must leave your assets in the pool before being able to withdraw them.

APY

Annual percentage yield i.e. the compounded expected returns of your staked assets given the current liquidity amount and incentives available to stakers.

Stake Amount

How much you are committing to staking.

Your Stake

How much you have currently staked.

Rewards / Day

How much of each ASA you are expected to earn per day given the current reward rates.

Unclaimed

How much of the boosted rewards you have not yet claimed from participating in staking.

BORROW PAGE DEFINITIONS

Total Supplied (Asset)

The amount of the asset you have supplied so far.

Total Supplied ($)

The total value in USD of the assets you’ve supplied.

Collateral Factor

The maximum amount of GARD you can borrow as a function of the value of the collateral you have supplied. (this number should be 100/140 or ~ 71.4% for ALGO and may vary for other assets)

Borrow Utilization

How much of your maximum borrow you’ve used up so far.

Liquidation Price

The price of the asset you’ve supplied at which you will be liquidated given the current amount of GARD you’ve borrowed.

GARD Borrow APR

The cost to borrow GARD each year denominated in GARD.

Bonus Supply Rewards

At some points in time the GARD Protocol will supply bonus rewards to users who are supplying assets to be used as collateral.

ALGO Governance APR

The current APR ALGO governors will receive for participating in governance through the GARD protocol.