Glossary
AMM — Automated market maker. On the XRPL, a pool of two assets that trades between them at a price set by its reserves. Depositors receive an LP token.
APY — The current per-block rate of a market, annualized. Displayed without compounding. The supply APY is earned by suppliers; the borrow APY is paid by borrowers. Both vary with the utilization rate.
Axelar — The interoperability network that relays Securd actions between the XRPL Ledger and XRPL EVM. Its explorer is Axelarscan.
Borrow limit — The maximum debt an account can hold, in USD: the sum of its collateral values, each weighted by the market's collateral factor.
Bridge fee — The XRP paid to Axelar to relay one action. Quoted in the action modal.
Close factor — The maximum fraction of a debt that can be repaid in one liquidation.
Collateral — A supplied asset enabled to back borrows. It contributes to the borrow limit and can be seized in a liquidation.
Collateral factor — The fraction of an asset's value that can be borrowed against, set per market.
Delivery — The final step of a borrow or a withdrawal: the tokens are transferred from XRPL EVM to the XRPL wallet.
DEX value — The live value of one LP token, computed from the pool's reserves and the oracle prices of its assets, before the haircut.
Exchange rate — The amount of the underlying asset one sToken represents. Increases as interest accrues.
Haircut — The discount applied to the DEX value of an LP token to obtain its oracle price.
Health factor — Borrow limit divided by total debt. A position with a health factor below 1 can be liquidated.
Intent — The signed description of an action (market, action type, amount, account, deadline) carried in the memo of the XRPL payment.
Issued token (IOU) — A token issued on the XRPL by an issuer account, as opposed to XRP. Holding one requires a trust line.
Liquidation — The repayment of part of an undercollateralized debt by a third party, who receives collateral plus an incentive in exchange.
Liquidation incentive — The collateral received by a liquidator per unit of debt repaid. The part above 100 % is the liquidation penalty.
LP token — Liquidity provider token: the share of an AMM pool held by a depositor.
Oracle price — The USD price used by the protocol for an asset. For an LP token, the DEX value minus the haircut, as published on-chain.
Pause guardian — The protocol role that can pause supplying or borrowing on a market, and sToken transfers or liquidations protocol-wide, immediately. Only the admin can unpause.
Proxy — The contract on XRPL EVM that holds an XRPL account's position. One per account, driven only by transactions signed from that account's wallet.
Registration — The one-time step that links an XRPL account to the protocol. Automatic on first connection.
Relay — The transfer of an XRPL payment, or of its message, to XRPL EVM by Axelar.
Repay all — The repayment mode selected by the Borrowed value of the repay modal: the payment carries the debt plus 0.1 %, the market takes exactly the debt, and the surplus remains in the proxy.
Reserve (XRPL) — XRP locked by the ledger in an account: 1 XRP plus 0.2 XRP per trust line and other ledger object. Not spendable.
Reserve factor — The fraction of the interest paid by borrowers retained by the protocol.
sToken — The token minted by a market when an asset is supplied (sXRP, sUSDC, …). Its value in the underlying asset increases as interest accrues.
Spendable XRP — The XRP balance minus the XRPL reserve. The amount the app considers available.
Stale price — An oracle price older than its maximum age (15 minutes for LP tokens). The protocol ignores it and reports Price not available.
Trust line — An XRPL account's authorization to hold an issued token, up to a limit. Locks 0.2 XRP of owner reserve.
USDC.axl — USDC bridged by Axelar, issued on the XRPL by the Axelar gateway. The only USDC accepted by the protocol.
Timelock — The contract through which the protocol admin changes collateral factors, with a minimum delay of 48 hours between the proposal and its execution.
Utilization rate — The share of a market's funds that is borrowed: total borrowed divided by available liquidity plus total borrowed, minus reserves. Determines both APYs.
XRPL EVM — The EVM-compatible sidechain of the XRPL where the Securd markets are deployed.