Glossary
This glossary defines key terms and concepts used throughout the Osito Protocol documentation.
A
AMM (Automated Market Maker): A type of decentralized exchange protocol that uses mathematical formulas to price assets. Osito uses AMM pool data to calculate borrowing limits.
APR (Annual Percentage Rate): The annualized interest rate for borrowers or yield for lenders. In Osito, APR ranges from 0% at 0% utilization to 10,000% at 100% utilization.
B
BERA: The native token of Berachain where Osito Protocol is deployed.
Borrower: A user who deposits eligible tokens as collateral and borrows BERA against them.
Borrowing Limit: The maximum amount of BERA that can be borrowed against a token or a specific position, calculated using Osito's mathematical model.
Burned LP Tokens: Liquidity pool tokens that have been permanently destroyed by sending them to a dead address, a requirement for token eligibility in Osito.
C
Collateral: Eligible tokens deposited in a position that allow the user to borrow BERA.
Constant Product Formula (x*y=k): The mathematical formula used by Kodiak and other AMMs to price assets and provide liquidity. Osito uses this formula to simulate worst-case price impacts.
D
Dumpable Tokens: The portion of a token's supply that's circulating (not in the liquidity pool, not staked in Osito, not deposited as collateral in Osito).
E
Eligible Token: A token that meets Osito's objective criteria: fixed supply and verifiably burned LP tokens.
I
Immutability: A core characteristic of Osito Protocol. The contracts are non-upgradable and have no governance, ensuring mathematical certainty of their operation.
Interest Accrual: The process by which interest is accumulated on borrowed amounts and distributed to lenders. Osito uses an index-based approach to track interest.
K
Kodiak: The primary DEX on Berachain that Osito integrates with for liquidity pool data.
L
Lender: A user who supplies BERA to the protocol to earn interest.
Liquidation: The process of closing an undercollateralized position. In Osito, liquidations are "all-or-nothing" - the entire position is closed.
Liquidity Pool: A smart contract holding paired assets (e.g., TOKEN/BERA) that enables trading and provides price discovery.
M
Max Borrow: The maximum amount of BERA that can be borrowed against a token or position, calculated by Osito's core formula.
N
Non-Monotonic Borrowing Power: The property where additional token deposits have competing effects on borrowing capacity - increasing global borrowing capacity while diluting individual borrowing power.
O
Oracle-Free: A core characteristic of Osito where lending limits are calculated without price oracles, using only on-chain AMM data.
P
Panda Factory: A trusted token deployer on Berachain that creates tokens with fixed supply, making them eligible for Osito.
Position: A user's collateral deposit and associated borrowing in Osito Protocol, identified by a unique position ID.
Position Max Borrow: The maximum amount a specific position can borrow, calculated as a proportion of the token's global max borrow.
R
Ramen: A trusted token deployer on Berachain that creates tokens with fixed supply, making them eligible for Osito.
Real-Time Risk Assessment: Osito's approach of fetching fresh pool data at each critical operation to ensure lending limits always reflect current market conditions.
S
Staker: A user who stakes eligible tokens to earn yield without taking on debt, while also reducing the token's circulating supply.
T
Token Eligibility: The criteria that determine whether a token can be used as collateral in Osito Protocol.
Token Utilization: The percentage of a token's borrowing capacity that is currently being used.
U
Utilization Rate: The ratio of borrowed BERA to supplied BERA, which determines the interest rate in the protocol.
W
wBERA: Wrapped BERA, the ERC-20 version of BERA used in the protocol.
Worst-Case Scenario: The hypothetical situation simulated by Osito's formula where all circulating tokens are sold into the liquidity pool at once.