Glossary

AMM

An Automated Market Maker that allows for permissionless trading without the use of order-matching or specified counter-parties. AMMs use liquidity pools which allow users to swap assets that are priced by an algorithm. To learn about Pryzm's YAMM, visit the markets page. To learn how to use Pryzm's trading market, visit the swap guide.

cToken

On Pryzm, yield-bearing assets like LSTs are called Collateral Tokens, or cTokens. Users can bond assets in Pryzm to turn them into cTokens. These cTokens represent any yield-bearing token, such as LP tokens, LSTs, or Real World Assets (RWAs). They consist of a principal and a yield.

Visit the cTokens page to learn more. To learn how to create cTokens, visit the liquid staking guide.

LP token

An LP token represents a share of an AMM liquidity pool. When users provide assets to a liquidity pool, they receive LP tokens in return, proportional to the amount they deposited into the pool. To redeem their assets, users can exchange the LP tokens for their share of the pool. Because pool amounts rebalance based on trading, the makeup of the assets you deposited may be a different amount than you receive, but the total value will be representationally equivalent to your original LP position.

To learn how to provide liquidity and receive LP tokens, visit the liquidity guide.

LST

A Liquid Staking Derivative. LSTs are yield-bearing tokens that can be traded freely and represent an underlying staked asset. Visit the liquid staking guide to learn how to liquid-stake your assets.

Maturity

The date on which yTokens and pTokens expire. When yTokens expire, they no longer pay out rewards. When pTokens expire, they can be converted into an equivalent amount of cTokens. Learn more about maturity.

pToken

The tokenized representation of the principal portion of an underlying yield-bearing asset or cToken. Visit the pToken page to learn more.

Refraction

The act of converting yield-bearing cTokens into their component parts of principal (pTokens) and yield (cTokens). Visit the Refraction page to learn more. To learn how to refract tokens, visit the refraction guide.

Staking

The act of locking up a coin with a validator in exchange for rewards. Staking is used to secure Proof of Stake blockchains. Visit the Staking 101 page to learn all about staking. To stake assets on Pryzm, visit the staking guide.

Validator

The miners of a Proof of Stake blockchain. Validators run nodes that participate in consensus and decide which transactions are valid. Visit the Staking 101 page to learn more about staking and validators. To stake assets on Pryzm, visit the staking guide.

Yield

The earnings generated from a principal asset. In the case of LSTs, the yield is generated from staking. Visit the cToken page to learn more about yield. To learn about different yield strategies, visit the strategies page.

yToken

The tokenized representation of the yield-bearing portion of an underlying yield-bearing asset or cToken. Visit the yToken page to learn more.