📖 Glossary

$MEAD

A collateral-backed stablecoin minted by collateralizing Berachain-native assets. Used within the Roots ecosystem for various purposes, including staking in the Stability Pool and participating in liquidations.

$BERA

The primary gas token used for transaction fees and staking on Berachain. Validators bond $BERA to participate in securing the network.

$BGT

Berachain Governance Token used for staking and governance within the Roots protocol. Automatically delegated by the protocol to maximize impact.

BCV

Block Captured Value, representing additional value captured from network activities. Earned through participation in the ecosystem.

$iBGT

iBGT is a liquid staking derivative of $BGT issued by Infrared

$HONEY

A stablecoin used across various dApps within the Berachain ecosystem. Provides stability and is frequently used in trading pairs within liquidity pools.

Stability Pool

A pool where users can stake $MEAD to earn rewards from liquidations. The $MEAD in the Stability Pool is used to repay liquidated debt, and the collateral is distributed to participants.

Liquidation

The process of selling collateral when a borrowing position falls below the Liquidation Threshold (120% collateral ratio). Liquidations can occur through the Stability Pool or by selling assets on exchanges using price aggregators.

Liquidation Bonus

An additional reward given to liquidators for successfully liquidating under-collateralized positions. The current rate is TBD.

Debt Ceiling

The maximum amount of debt that can be issued within the protocol. The current debt ceiling is TBD.

Collateral Ratio

The ratio of collateral to debt required to maintain a borrowing position. Currently set at 120% for all assets but may be subject to change.

Borrowing Fee

A fee charged when minting $MEAD by collateralizing assets. Currently set at 0.5%.

Repayment Fee

A fee charged when repaying $MEAD debt. Currently set at 0%.

Redemption Fee

A fee charged when redeeming $MEAD to retrieve collateral. Currently set at 0.5%.

Trove

A collateralized debt position within the Roots protocol. Managed by the TroveManager smart contract.

Validator

A participant in the Berachain network who bonds $BERA to secure the network and process transactions. Validators earn rewards for their participation.