📘Terminology

UWU Protocol

A stablecoin protocol built on Stacks that offers zero-interest loans with no repayment date. Users can deposit STX as collateral and borrow up to 66% of the dollar value of their deposit in the form of UWU Cash (UWU), the fully-backed and unstoppable stablecoin of UWU Protocol.

UWU Cash (UWU)

A stablecoin over-collateralized with STX that is highly decentralized and censorship-resistant.

Vault

A digital container used to take out and manage a loan on UWU Protocol. A Vault is associated with a specific Stacks address, and each address can have up to 20 Vaults open at the same time.

Collateral

An asset that a borrower pledges to a lender as security for a loan. If the borrower fails to repay the loan, the lender can seize the collateral to recover their losses.

Debt

Something, typically money, that is owed or due.

Collateral Ratio

The ratio of the value of a Vault's collateral to the amount of debt they have outstanding.

Loan-to-Value (LTV)

The ratio of the amount of a loan to the value of the collateral that is securing the loan.

Liquidation

The process by which a Vault is closed and liquidators are able to acquire the collateral held in the Vault by repaying its debt.

Arbitrage

The practice of taking advantage of differences in the price of an asset on different exchanges.

Peg

The target value at which the price of a cryptocurrency or asset is supposed to be maintained.

Stacks (STX)

Stacks is a smart contract layer anchored to the Bitcoin blockchain that enables programmable smart contracts that leverage the security and immutability of Bitcoin. Stacks (STX) is the native cryptocurrency of Stacks. STX is used to pay for transaction fees and execute smart contracts.