🎛️Glossary

2sAMM

The core AMM which powers all of Itos. It can be used as a traditional Uni-V3 or V2 style AMM (e.g. earning yield from swap fees), but can also be used for its anti-liquidity which creates synthetic options-like positions.

Asset

Asset/position is the general term for any investment vehicle on Itos. They are created by Producers and installed on the Position Manager in a wallet's portfolio.

Delta Factor

For a given token in an Asset's record, an over-estimate of the potential percentage change in value due to the behavior of the asset, in the time it takes for a liquidation to occur.

Floor Value

Most investments can have their value plummet to zero. By hedging/insuring that investment, its monetary value can be guaranteed to remain above a certain amount. That is the Floor Value of the investment.

Hedging Vs Insuring.

Insurance typically pays out a lump sum for a certain event happening. It does not rescue you from what has occurred. Whereas proper hedging typically preserves assets such that your position is salvageable and reduces the volatility of your portfolio.

For example, if you borrow 50K USDC against a deposit of 1 BTC and BTC's price falls to 49K, then the money market will liquidate you. Insurance will award you some compensation for the liquidation but you won't get the lost BTC or any liquidation penalties back. Hedging involves adding an asset that rises in value as BTC's price falls so that you never get liquidated in the first place.

Liquidity Providers

Users who deposit tokens into the 2sAMM to earn yield from the entire assembly of protocols.

Portfolio

Each wallet is given multiple portfolios which are risk silos to hold assets in. Assets in a given portfolio are cross-margined against other assets in the same portfolio.

Producer

The smart contracts which create Assets and speaks to the Position Manager. The adhere to a strict interface which allows the PM to query the value of assets and close any as desired/necessary.

PositionManager

The core cross-margining facility underlying all of Itos. This allows users to use any position from any protocol in the Itos collection as collateral for any other Itos position. This includes the external protocols we've wrapped and docked into Itos.

Structured Products

A broad catch-all term for investments whose value is more complex than a simple equity investment. Their payoffs typically depend on a non-linear relationship with an underlying price.

Variance Factor

For a given token, an over-estimate of the percent change in USD value in the time it takes for a liquidation to occur.