Glossary
Key terms used throughout the Dawn Vault documentation.
APY
Annual Percentage Yield — the annualized return including compounding effects
Base Layer
The always-on yield strategy (lending or staking) that generates returns regardless of market conditions
Alpha Layer
The conditional yield strategy that activates only during favorable market conditions for enhanced returns
cbBTC
Coinbase Wrapped BTC — a BTC representation on Solana issued by Coinbase
CPI
Cross-Program Invocation — the mechanism by which Solana programs call other programs
dawnSOL
Dawn Labs' Liquid Staking Token (LST) — represents staked SOL with Dawn Labs' validator
Delta-Neutral (DN)
A strategy that holds equal and opposite positions (long spot + short perp) to eliminate directional price exposure while earning funding rates
eMode
Efficiency Mode — a lending protocol feature that allows higher LTV for correlated asset pairs (e.g., SOL/LST)
Funding Rate (FR)
Periodic payment between long and short traders in perpetual futures markets, used to keep perp prices aligned with spot
High Water Mark (HWM)
The highest-ever share price of a vault, used to ensure performance fees are only charged on new profits
LP Token
Liquidity Provider Token — represents a depositor's proportional share of a vault
LST
Liquid Staking Token — a token representing staked assets that can be used in DeFi while earning staking rewards
LST Loop
A leveraged staking strategy: stake SOL → receive LST → use as collateral → borrow SOL → restake → repeat
LTV
Loan-to-Value ratio — the ratio of borrowed amount to collateral value; higher LTV means higher liquidation risk
Manager Bot
The off-chain automated system that executes vault strategies, manages positions, and monitors risk
PDA
Program Derived Account — a Solana account owned by a program (not a private key), used for non-custodial asset custody
Perp / Perpetual
Perpetual futures — futures contracts with no expiry date, using funding rates to track spot prices
Share Price
The value of one LP token in terms of the vault's base asset (e.g., USDC). Increases as the vault earns yield
Slippage
The difference between expected and actual execution price of a trade
TVL
Total Value Locked — the total amount of assets deposited in a vault or protocol
Voltr
The vault framework by Ranger Finance on which Dawn Vault is built
Yield Provenance
The practice of decomposing and disclosing every source of vault yield
Yield Smoothing Reserve (YSR)
A reserve funded by validator commission that stabilizes vault APY during unfavorable market conditions
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