Navigating a new crypto platform, especially one focused on Liquid Staking, can feel like diving into a pool of jargon. Don't worry, you're not alone! Understanding the specific terms used in DeFi (Decentralized Finance) is crucial for getting started on any project.
To make your Sceptre journey smooth, we've created a handy glossary of essential terms. Let's break the code and unlock the world of Liquid Staking!
APY - Annual Percentage Yield (APY) is like an interest rate, but it takes compounding into account, so it shows the total return you can earn in a year.
C-chain - Flare uses 2 chains. The contract chain (C-chain) is used for smart contracts. It is where the Ethereum Virtual Machine operates, and is the chain where the vast bulk of the community currently interact.
CEX - a Centralized Exchange (CEX) is an online trading platform that allows people to buy, sell, and swap crypto assets. It’s owned and operated by a private company and subject to the laws and regulations of every jurisdiction it operates in.
Cooldown period - a 14-and-a-half-day waiting period that follows a user’s unstaking order. This period allows the network to securely process the unstaking request. On Sceptre, following this period, users receive their original stake in the form of wFLR plus proportional rewards accrued during the staking period minus a 10% fee on the rewards.
DEX - a Decentralized Exchange (DEX) is a peer-to-peer marketplace running permissionlessly through smart contracts on a blockchain where transactions occur directly between traders. An entity or project may help set up and maintain a DEX, but it can run itself as long as people provide liquidity.
Flare Network - a blockchain that allows developers to build applications with features from other blockchains, like Ethereum's smart contracts. Flare’s main goal is decentralizing data, ensuring universal accessibility without central control.
Flare Time-Series Oracle (FTSO) - offers ongoing, decentralized, and secure estimations for diverse data types. Independent data providers retrieve data from various sources, and the FTSO system calculates a final estimate based on weighted input. You can learn more about the FTSO here.
FlareDrop - the FlareDrop is a way to distribute remaining FLR tokens to users who participate in the network over a period of 3 years.
FLR - Flare token is the inflationary token within the Flare ecosystem, utilized for smart contracts, transaction fees, and FTSO-generated FLR tokens. It’s used for payments, transaction fees and staking in validator nodes, and enables various applications like DeFi, NFTs, metaverse, and gaming.
Kinetic - the premier lending protocol on the Flare Network. Kinetic offers instant deposits and withdrawals, and lets users earn yield by lending assets, including sFLR, and gain leverage by borrowing, all without relying on a third party. You can learn all about Kinetic here.
Liquid Staking - the process of obtaining a tradable asset in exchange for staking a cryptocurrency in a proof-of-stake blockchain. On Sceptre, users receive a tradable asset called sFLR for staking their FLR or wFLR while accruing the rewards of traditional staking. This sFLR can be used to earn additional yield in other protocols in the Flare Network.
P-chain - Flare uses 2 chains. The platform chain (P-chain) accommodates staking and provides rewards to its validators.
Rewards - Coins and tokens users receive for locking up their cryptocurrency assets. Flare has three native reward mechanisms: staking to infrastructure providers to support network consensus and security; delegating to the Flare Time Series Oracle (FTSO) to support the delivery of decentralized data to the network; and receiving monthly FlareDrops for network participation.
Sceptre - a multi-network Liquid Staking solution developed by Rome Blockchain Labs currently providing sFLR to users who stake FLR or wFLR tokens.
Staking - the process of locking cryptocurrency assets for a predetermined duration to validate network transactions or to supply liquidity to others. In exchange for staking, participants receive cryptocurrency rewards.
sFLR - Staked Flare, the token users receive when liquid staking their FLR or wFLR with Sceptre. This allows holders to continue to receive native rewards, like FlareDrops, while also using sFLR to earn additional yield in other protocols.
Unstaking - the process of withdrawing staked cryptocurrency assets.
wFLR - the Flare Token, wrapped into an ERC-20 variant. It can be delegated to FTSO data providers or staked to participate in governance. Wrapped FLR (wFLR) can be minted by depositing native FLR tokens into a smart contract and withdrawing the newly minted WFLR.
Feeling confident about navigating Sceptre now? Great!
Remember, this glossary is just the first step. For even deeper dives and to connect with helpful experts, join our communities on Telegram and Discord.
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