Glossary

AGF token — the native asset of the Augmented Finance ecosystem, which constitutes the foundation of governance and safety for the protocol.

agToken — an interest-bearing token that is received after lending an asset to the protocol.

Auction Module — the module that carries out the sell-off of assets in the Staking Module and is provided by the Issuance Module in case of a Shortfall Event.

Augmented Finance — an autonomous, non-custodial liquidity protocol, which offers the highest interest on deposits and the lowest rates for borrowing digital assets. It is built to unlock the world of open financial applications using AI to give birth to the intelligent DeFi era.

Borrowing — obtaining a loan secured by a crypto asset in the protocol and paying interest on the loan.

Depositing — providing an interest-bearing token of another protocol into a migration module to migrate underlying assets from another protocol to Augmented Finance.

Ecosystem Incentives — represent the part of the periodic issuance of AGF tokens used to incentivize liquidity providers (lenders and borrowers) and stakers.

Ecosystem Reserve — the module of the protocol that is used to distribute tokens for yield farming liquidity providers and stakers.

Issuance Module — the module that can be triggered whenever the Staking Module is not enough to cover the complete recovery of the protocol following a critical loss of funds.

Lending — providing an asset to the protocol and earning interest on the asset provided.

Liquidation — is a process that occurs when a borrower's collateral value not properly covering their loan/debt value.

Liquidity Mining a subcase of Staking, when a staker provides liquidity in the form of DEX LP tokens (AGF/ETH pool tokens from Uniswap, SushiSwap, and Balancer).

Liquidity Migration / Swap — an exchange of one token to another.

Recovery Issuance — can be triggered whenever the Staking Module is not enough to cover the complete recovery of the protocol followed by a critical loss of funds.

Shortfall Event — event in the protocol causing a state of deficit for the liquidity providers. Can be caused by a smart contract risk (bugs, hacks, etc.), liquidation risk (e.g. risk of failure of an asset that is being used as collateral), or price-oracle risk (risk of the oracle not properly updating prices).

Staking provision of several types of tokens to the Staking Module to increase the safety of the protocol and receipt of AGF tokens as rewards. By staking tokens, a user accepts the risk of slashing a part of their stake in case of a Shortfall Event. The tokens that are accepted to the Staking Module include: AGF tokens, agTokens, and DEX LP tokens (AGF/ETH pool tokens from Uniswap, SushiSwap, and Balancer).

Staking Incentives — these are incentives in the form of AGF tokens which are received for staking AGF, agTokens, and DEX LP tokens (AGF/ETH pool tokens from Uniswap, SushiSwap, Balancer) in the Staking Module.

Staking Module — the module of the protocol, where users lock their tokens to protect the protocol in case of a Shortfall Event. The tokens that accumulate in the Staking Module are AGF tokens, agTokens, and LP DEX tokens (AGF/ETH pool tokens from Uniswap, SushiSwap, Balancer).

Yield Farming — earning rewards in the form of AGF tokens for lending and borrowing on the platform.