Resources
Glossary
Key terms and definitions used throughout the Fiet Protocol documentation
| Term | Definition |
|---|---|
| Automated Market Maker (AMM) | A smart contract facilitating token swaps in a decentralised exchange using predefined price curve algorithms, supported by liquidity pools. |
| Blockchain | A decentralised, tamper-resistant digital ledger for recording transactions across a distributed network, ensuring security and transparency. |
| Cryptographic Proofs | Verifiable computations, such as zero-knowledge proofs or MPC-TLS proofs, ensuring data integrity and privacy in Fiet’s operations, like VRL verification or settlement intent. |
| Data Portability | The ability to securely transfer verified data, such as VRL state, across Market Chains using cryptographic signatures (e.g., tECDSA). |
| Decentralised Exchange (DEX) | A peer-to-peer trading platform for digital assets, operating without intermediaries and typically powered by AMMs. |
| Fiet DAO | The planned decentralised governance body for the Fiet Protocol, managing technical parameters and treasury post-(FIET) token launch. |
| Fiet Markets | AMM-based trading pools in the Fiet Protocol, pairing LCCs to facilitate secure and efficient token swaps. |
| Fiet Prover | A zkTLS Prover, built with Verity, that generates zkTLS proofs for data verification, supporting VRL, VTS, and settlements. |
| Impermanent Loss | Losses faced by liquidity providers in AMM pools due to price volatility and pool rebalancing, impacting returns. |
| Liquidity Commitment Certificate (LCC) | A synthetic, non-transferable asset in Fiet Markets representing MMs’ VRL commitments, traded exclusively on Fiet’s DEX. |
| Market Maker (MM) | A participant facilitating liquidity for Fiet Markets, committing VRL and managing settlements, incentivised by rewards and fees. |
| Market Chain | A blockchain network integrated with Fiet Markets, where VRL state is syndicated and verified for cross-chain operations. |
| Merkle Tree | A cryptographic data structure organising VRL state in a verifiable compute environment, enabling efficient validation across Market Chains. |
| Proof of Settlement | A cryptographic proof demonstrating an MM’s intent to settle liquidity, used to extend grace periods during RfS processes. |
| Request for Settlement (RfS) | A condition triggered when additional liquidity is needed, managed by Fiet’s VTS manager. |
| Rehypothecation | The reuse of committed liquidity across multiple markets or platforms, adapted in Fiet to optimise capital efficiency while managing settlement risks. |
| Settlement Guarantor | A participant (MM or bot) settling an MM’s RfS obligation, seizing their liquidity position for profit, incentivised by collateral. |
| Threshold-ECDSA (tECDSA) Signatures | Decentralised signatures in zkTLS system, signing VRL state updates for secure cross-chain syndication. |
| Universal Rewards Distributor (URD) | A Fiet Protocol component enabling weekly reward claims for user activities (e.g., market making, trading). |
| Value-to-Signal (VTS) Model | A mechanism calculating the ratio of settled to committed liquidity, driving settlement triggers. |
| Verifiable Compute Environment | A secure platform, such as the Internet Computer, processing zkTLS proofs and managing VRL state in Fiet. |
| Verified Reserve Liquidity (VRL) | Off-chain liquidity committed by MMs, verified via Verity’s zkTLS system, enabling capital-efficient market making. |
| Zero-Knowledge Proofs | Cryptographic methods allowing data verification (e.g., reserve liquidity) without revealing sensitive details, ensuring privacy and security. |
| zkTLS | Zero-knowledge Transport Layer Security proofs, verifying private financial data for Fiet’s operations. |