- Bite: action of triggering a CDP’s liquidation
- Boom/Bust Spread: Discount/premium at which the system sells collateral PETH for DAI
- Burn: the process of destroying MKR that are paid as stability fees
- Burner Address: the public Ethereum address that escrows MKR prior to burning
- CDP: Collateralized Debt Position, a collateral position holding locked Ethereum administered by a smart contract system
- CDP Portal: a front-end application with which you can interact with your CDP
- Collateral: assets locked in a CDP
- Collateral Claims: the amount of redeemable collateral Dai holders and CDP owners have claim to in the event of an Emergency Shutdown
- Collateralization Ratio: the ratio between a CDP’s collateral and the Dai issued by that CDP
- Continuous Approval Voting: a voting design that involves leaving your vote in the previous proposal
- Dai: USD pegged decentralized stablecoin of the Dai Credit System
- Dai Credit System: a name for the MakerDAO smart contract system
- Debt/Stability Debt: the amount of dai generated through a CDP
- Debt Ceiling: the maximum amount of Dai that can be generated in the Dai Credit System
- Decentralized Risk Management(function): the cooperative interaction between Maker Token Holders and all Risk Teams to manage risks in MakerDAO
- Development Fund: another name for the Maker Foundation’s multisig wallet that contains MKR, which is sold for operational expenses
- Draw: the action of generating dai from a CDP
- Emergency Shutdown: a security feature that allows the system to shut down and make underlying collateral available for redemption
- Executive Vote: a continuous approval vote that executes changes in the system if passed
- Free: the action of releasing collateral from a CDP
- Give: the action of transferring CDP ownership to a different Ethereum address
- Governance Poll: a time-based vote to gather soft consensus
- Governance Portal: a front-end application that allows you to interact with MakerDAOs on-chain governance
- Join/Exit Spread: a system parameter that represents a discount or premium for converting between ETH and PETH
- Lock: the action of placing collateral into your CDP
- Liquidation: automatic sale of a CDP’s collateral to cover its outstanding Dai
- Liquidation Penalty: a penalty fee that’s applied to a CDPs Dai balance when it is liquidated
- Liquidation Price: lowest price per unit of collateral before a CDP is vulnerable to liquidation
- Liquidity Providing Contract: a smart contract which facilitates collateral sales
- Liquidation Ratio: a risk parameter defining the minimum Collateralization Ratio below which a CDP is vulnerable to liquidation
- Maker Foundation: the organization that created to develop and bootstrap the Dai Credit System
- Maker Foundation Interim Risk Team: the first Risk Team whose role is to help bootstrap the Decentralized Risk Management function
- Market-Maker: an agent that provides liquidity to a market by offering to both buy and sell a given asset.
- MCD: acronym for Multi Collateral Dai
- Medianizer: the smart contract that collects price feed information from Price-Feed Providers and publishes a reference price for each asset
- MKR: governance token of MakerDAO
- Multi Collateral Dai: the upgraded Dai Credit System that utilizes multiple collateral types
- Keeper: external actors who perform various functions in the system
- Oracle: a smart contract system which makes off-chain data, such as price data, available on-chain
- Oracle Security Module: a security mechanism that delays the Oracle price feed
- P-ETH: a token representing pooled ether
- Price-Feed Delay: a risk parameter that controls the delay of the Oracle price feed
- Price-Feed Provider: operator of an Oracle that reports price data to the Medanizer
- Proposal: a written plan put forward for a vote
- Reference Price: the authoritative asset price published by the Medianizer
- Risk Construct: a collection of data, risk models, outputs, documentation, and analysis
- Risk Model: an analytical model measuring and predicting risk, including the input data and output of the model
- Risk Parameters: a set of configurable, risk-related, variables used to manage the system
- Risk Team: an independent party who creates a Risk Construct for Maker Governance
- SCD: acronym for Single Collateral Dai
- Shut: action of closing a CDP by paying back outstanding Dai and the Stability Fee
- Single Collateral Dai: the Dai Credit System which solely accepts ETH as collateral
- Soft-peg: relating the target value of a cryptocurrency to the absolute value of a fiat currency, allowing for some variance
- Stability Fee: a variable Fee charged to a CDP for the creation and use of Dai, set by MKR holders through governance actions
- Time-Based Voting: a voting design that ends a vote by a predetermined time
- Voting Proxy: a smart contract that allows MKR token holders to vote with their hot wallets using MKR that is stored on their cold wallets
- W-ETH: ERC-20 compatible ETH
- Wipe: action of paying back Dai to a CDP