A glossary of DIVA Protocol specific terminology
A smart contract that, upon collateral deposit, issues two types of shares (long and short) that combined represent a claim on the deposited collateral asset. The payout for each of these shares is contingent on the outcome of an external event.
A metric or event whose outcome determines the payout for long and short position tokens.
Long position token
A share in a long position. A long position benefits when the value of the reference asset goes up.
Short position token
A share in a short position. A short position benefits when the value of the reference asset goes down.
ERC20 token that is deposited into a contingent pool and backing the corresponding long and short position tokens.
Time when the position tokens expire and the outcome of the underlying event is assessed.
Value of the reference asset at or below which the long token pays out 0 and the short token 1 (max payout).
Value of the reference asset at or above which the long token pays out 1 (max payout) and the short token 0.
Value of the reference asset at which the long token pays out Gradient and the short token 1-Gradient.
Long token payout at inflection (value between 0 and 1). The short token payout at inflection is 1-Gradient.
An Ethereum address (individual account or smart contract) that is supposed to report the final reference value following pool expiration.