Terminology
A glossary of DIVA Protocol specific terminology
Term | Description |
|---|---|
Contingent pool | 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. |
Reference asset | 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. |
Collateral token | ERC20 token that is deposited into a contingent pool and backing the corresponding long and short position tokens. |
Expiry | Time when the position tokens expire and the outcome of the underlying event is assessed. |
Term | Text |
|---|---|
Floor | Value of the reference asset at or below which the long token pays out 0 and the short token 1 (max payout). |
Cap | Value of the reference asset at or above which the long token pays out 1 (max payout) and the short token 0. |
Inflection | Value of the reference asset at which the long token pays out Gradient and the short token 1-Gradient. |
Gradient | Long token payout at inflection (value between 0 and 1). The short token payout at inflection is 1-Gradient. |
Term | Description |
|---|---|
Data provider | An Ethereum address (individual account or smart contract) that is supposed to report the final reference value following pool expiration. |
Last modified 1yr ago