Glossary

Total Value Locked (TVL)

Total Value Locked (TVL) is a metric used to measure the total value of digital assets that are locked or staked in a particular decentralized finance (DeFi) platform or decentralized application (dApp). The higher the TVL, the more trustworthy the platform or dApp is perceived to be.

APY

Annual percentage yield (APY) acts as a savings account similar to an annual percentage rate (APR) account. In DeFi, the value of APY changes widely based on different factors and can change quickly.

Validators

Validators provide a service to Sui by operating and securing the network. In exchange, they are compensated with commissions from staking rewards. In the early phases of the network, staking rewards are made up of stake subsidies plus gas fees.

Epoch

An epoch in staking refers to how long a node will have to stake tokens to be eligible to participate in the consensus mechanism for a proof-of-stake blockchain.

Liquidity

Liquidity refers to the total available circulating supply of a given asset in a protocol.

Liquidity Pool

A liquidity pool is a smart contract containing large portions of tokens being locked up and ready to provide essential liquidity for networks that facilitate decentralized trading. Any pair of tokens can have liquidity pools created for them (haSUI/SUI, SUI/USDC, USDT/USDC, etc.)