Glossary

Terms	Description
AMM	AMM is the short of automated market maker. It is a blockchain-based smart contract that holds liquidity reserves. Users can either trade against liquidity reserves at prices determined by a specific formula, or provide their liquidity to the liquidity reserves to earn fees generated by ongoing swaps. Usually, AMM particularly refers to the constant product market maker which complies with the classic x*y=k formula.
APY	Annual Percentage Yield, which is the yield/interest after a year, including compounding interest. This differs from APR, which does not account for compounding effects.
CLMM	CLMM is the short of Concentrated Liquidity Market Maker. It is a DEX or a DeFi protocol that is built with the concentrated liquidity infrastructure.
Concentrated Liquidity	Liquidity that is allocated within a specified price range.
Deposit Slot	Represents a lender's share in a Loan Position.
Loan Position	A central lending pool within the Firyx protocol.
Loan Slot	Represents a borrower's share in a Loan Position.
Over-collateral Lending	The traditional method of lending and borrowing. In order to borrow, borrowers must first supply to the protocol a larger amount of tokens to act as collateral upon liquidation.
Liquidation	The process that occurs when a borrower’s health factor drops below 1, resulting in the sale of collateral to repay part of the debt and bring the position back to a safer level.
Non-collateral Lending	A lending model that enables borrowers access to capital without providing over-collateral.
Protocol Reserve	A small upfront amount that the borrower must deposit in order to acquire a Loan Slot. Calculated to be slight larger than the expected interest payment.
Utilization Rate	A metric that determines the proportion of borrowed assets to the total available assets in a reserve. A higher utilization rate indicates higher borrowing demand.