Glossary
Key terms and concepts used throughout Foundation documentation.
Core Concepts
USD' (USD Prime)
The base layer asset backed by fiat stablecoins (USDC, USDT) and RWAs. The shared liquidity layer for all strategies.
Foundation Vault
The core accounting engine that holds all collateral backing USD' and maintains global solvency.
Rebalance Router
Smart contract that enables atomic swaps between yield strategies via USD'.
Curator
An asset manager, DAO, or protocol builder who launches a yield strategy on Foundation.
Strategy Dollars
Yield-bearing tokens (PrimeUSD, ApolloUSD, OrdUSD) built on top of the USD' base layer.
Yield Strategies
PrimeUSD
Conservative yield strategy that optimizes returns across DeFi lending markets (Aave, Morpho, Compound).
ApolloUSD
Moderate-risk strategy providing exposure to RWAs (Treasury Bills) and private credit via Acred.
OrdUSD
Higher-yield delta-neutral strategy capturing perpetual futures funding rates via Orderly Network.
Strategy Shares
ERC4626 vault tokens representing ownership in a yield strategy. Share value increases as yield accrues.
Technical Terms
ERC4626
Ethereum standard for tokenized yield-bearing vaults. Provides consistent interface for deposits, withdrawals, and share accounting.
T+0 Settlement
Instant settlement in the same block as the transaction. Foundation enables T+0 rebalancing between strategies.
Virtual Settlement
Internal ledger update that credits one strategy and debits another without physical token transfers.
Liquidity Buffer
5-10% of strategy TVL held in liquid stablecoins to enable instant withdrawals from illiquid underlying assets.
Delta-Neutral
Position that has no directional exposure to price movements. Achieved by holding equal long spot and short perpetual positions.
Risk Terms
NAV (Net Asset Value)
The total value of a strategy's assets minus liabilities, divided by shares outstanding. Represents the fair value per share.
Slippage
The difference between expected and executed price. Foundation's atomic swaps have 0% slippage.
Funding Rate
Periodic payments between long and short perpetual futures traders. OrdUSD captures these payments.
Collateral Factor
The percentage of deposited collateral that can be borrowed against in lending protocols.
Financial Terms
APY (Annual Percentage Yield)
The annualized rate of return including compounding.
TVL (Total Value Locked)
The total value of assets deposited in a protocol or strategy.
RWA (Real World Assets)
Tokenized representations of traditional financial assets like Treasury Bills, bonds, and private credit.
Cash Drag
The opportunity cost of holding idle cash instead of deployed capital. Foundation minimizes this through shared liquidity buffers.
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