Terminology

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ATEN

The native token of the Athena protocol, used for governance and staking.

Claim

A request for compensation submitted by a cover holder when they believe the conditions for a payout have been met.

Compensation

The payout made to cover holders when a valid claim is approved.

Cover

Protection purchased by users to insure their assets against specific risks in DeFi protocols.

Cover Pool

A pool of liquidity dedicated to providing coverage for a specific DeFi protocol or asset.

Deductible

A small portion of cover refunds used to buy back and burn ATEN tokens, helping to stabilize token value during high claim activity periods.

Leverage (in positions)

When a liquidity provider allocates their capital across multiple cover pools, potentially increasing their rewards but also their risk exposure.

Liquidity Provider

Users who deposit assets into Athena's cover pools, earning rewards in exchange for underwriting risk.

Overlaps

The shared liquidity between two or more cover pools, resulting from leveraged positions.

Pool

A combination of a covered protocol (the insured DeFi protocol) and a strategy protocol (where liquidity is invested for extra rewards).

Position

Represents a liquidity provider's stake in one or more cover pools, recorded as an ERC-721 token.

Premium

The fee paid by cover buyers to maintain their protection.

Premium Rate

The annualized cost of holding a cover in a given pool, expressed as a percentage.

Prosecutor

A user who challenges a claim by providing evidence that the claim is invalid.

Ray

A unit used for precise calculations in the protocol, equal to 1e27 (27 decimal places).

Reward Rate

The annualized return for liquidity providers in a pool, calculated by multiplying the utilization rate and the premium rate.

Staking

The process of locking up ATEN tokens to earn additional rewards and participate in governance.

Strategy Protocol

The DeFi protocol where pool liquidity is invested to generate additional yields.

Tick

A point on the timeline used to track cover durations and pool states. The distance between ticks (seconds per tick) can vary based on pool utilization.

Utilization Rate

The percentage of a pool's liquidity currently allocated to active covers.

vATEN

Voting ATEN, representing both governance voting power and share in protocol revenues, obtained by staking ATEN through the DAO.

Virtual Pool

Athena's method of managing pool liquidity and cover data without creating separate contracts for each pool, allowing for efficient capital allocation.