Glossary
A
APY (Annual Percentage Yield) The annualized rate of return on an investment, including the effect of compounding. Stasis targets 5-6% APY.
Arbitrage The practice of taking advantage of price differences between markets or instruments to generate profit with minimal risk.
Auto-Compounding The automatic reinvestment of earned yield back into the principal, allowing returns to compound over time without manual intervention.
B
Basis The price difference between a futures contract and the underlying spot asset. Basis trading involves profiting from this difference.
Blockchain A distributed ledger technology that maintains a continuously growing list of records, called blocks, which are linked and secured using cryptography.
C
Collateral Assets pledged as security for a loan or to cover potential losses. In Stasis, USDC serves as collateral for perpetual futures positions.
Correlation A statistical measure of how two assets move in relation to each other. Delta-neutral strategies aim for low correlation with market movements.
D
Delta A measure of how much an asset's price changes in response to a $1 change in the underlying asset's price. Delta-neutral means zero net exposure to price movements.
Delta-Neutral An investment strategy that aims to eliminate directional market risk by maintaining a portfolio delta of zero through offsetting long and short positions.
DeFi (Decentralized Finance) Financial services built on blockchain technology that operate without traditional intermediaries like banks.
E
ERC-20 A technical standard for tokens on the Ethereum blockchain. rSTS is an ERC-20 token, making it compatible with wallets and DeFi protocols.
Exchange Rate The rate at which rSTS tokens can be converted to USDC. This rate increases over time as the vault generates yield.
F
Funding Rate Periodic payments between long and short positions in perpetual futures contracts, designed to keep futures prices close to spot prices.
Funding Rate Arbitrage A strategy that involves collecting funding rate payments while maintaining market neutrality, which is Stasis's primary yield generation method.
Futures Contract A financial derivative that obligates parties to buy or sell an asset at a predetermined future date and price.
G
Gas Fees Transaction fees paid to blockchain miners or validators for processing transactions. On Avalanche, these are typically very low.
Gamma The rate of change of delta with respect to changes in the underlying asset's price. High gamma means delta changes rapidly.
H
Hedge An investment position intended to offset potential losses or gains in another position. Stasis uses short perpetual futures to hedge spot exposure.
Hyperliquid A decentralized exchange specializing in perpetual futures trading, where Stasis executes its delta-neutral strategy.
I
Impermanent Loss A temporary loss of funds experienced by liquidity providers due to volatility in a trading pair. Delta-neutral strategies aim to avoid this risk.
L
Leverage The use of borrowed capital to increase the potential return of an investment. Perpetual futures allow leveraged exposure to price movements.
Liquidity The ease with which an asset can be bought or sold without affecting its price. Stasis maintains liquidity buffers for user withdrawals.
Long Position A position that profits when the underlying asset's price increases. In traditional investing, buying and holding an asset.
M
Margin The collateral required to open a leveraged position. Stasis maintains margin on Hyperliquid for its perpetual futures positions.
Mark Price The fair value price of a perpetual futures contract, calculated by exchanges to prevent manipulation and determine funding rates.
Market Neutral An investment strategy that seeks to profit regardless of market direction by maintaining equal long and short exposures.
P
Perpetual Futures (Perps) Derivative contracts that track the price of an underlying asset without an expiration date, unlike traditional futures contracts.
Portfolio Delta The aggregate delta of all positions in a portfolio, representing the portfolio's sensitivity to underlying asset price movements.
R
Rebalancing The process of adjusting portfolio positions to maintain target allocations or risk parameters, such as delta neutrality.
rSTS (Rebasing Stasis Token) The yield-bearing token representing shares in the Stasis vault. Its value automatically increases as the vault generates yield.
S
Sharpe Ratio A measure of risk-adjusted return, calculated as (return - risk-free rate) / volatility. Higher Sharpe ratios indicate better risk-adjusted performance.
Short Position A position that profits when the underlying asset's price decreases. Involves selling an asset you don't own with the intention to buy it back later at a lower price.
Slippage The difference between the expected price of a trade and the actual executed price, often due to market volatility or large order sizes.
Smart Contract Self-executing contracts with terms directly written into code, running on blockchain networks without intermediaries.
Spot Price The current market price of an asset for immediate delivery, as opposed to futures prices for future delivery.
T
TVL (Total Value Locked) The total amount of assets deposited in a DeFi protocol. For Stasis, this represents the total USDC deposited in the vault.
TWAP (Time-Weighted Average Price) The average price of an asset over a specific time period, often used in funding rate calculations to prevent manipulation.
U
USDC (USD Coin) A stablecoin pegged to the US Dollar, used as the base currency for deposits and withdrawals in Stasis.
V
Vault A smart contract that pools user funds and executes investment strategies. The Stasis vault implements delta-neutral yield generation.
Volatility A measure of price fluctuation over time. Delta-neutral strategies aim to reduce portfolio volatility while maintaining yield generation.
W
Web3 The decentralized internet built on blockchain technology, enabling direct peer-to-peer interactions without intermediaries.
Withdrawal The process of redeeming rSTS tokens for USDC from the Stasis vault. Users can withdraw at any time based on the current exchange rate.
Y
Yield The income generated by an investment, typically expressed as a percentage of the principal amount. Stasis generates yield through funding rate arbitrage.
Yield Farming The practice of earning rewards by providing liquidity or participating in DeFi protocols. Stasis offers a delta-neutral approach to yield farming.
This glossary covers the key terms used throughout the Stasis documentation. For additional clarification on any terms, please refer to the relevant sections or contact our support team.