Terminology

This section aims to be a source of truth for the terminology used in all the protocol components, from smart contracts systems, to frontend, documentation and supporting material.

Term	Description
Blueprints	Smart contract layer where a set and sequence of individual actions are executed according to the corresponding module purpose.
Module	High level smart contract layer that routes execution to the corresponding blueprint according to the protocol requirements.
Action	Individual logic components of the smart contracts system that can be attached to a blueprint to execute a specific flow of the protocol.
Storage Contract	Onchain entity that registers all transactional data from the protocol
Loan Terms	Rules that apply to a loan taken through Concrete (lender, collateral and loan asset types and amounts, APR)
Foreclosure	Instance where a loan taken through Concrete breaches the critical foreclosure LTV. When this happens, Concrete repays the loan before it gets liquidated on the lending platform and takes ownership of the loan.
Protection	30-day promise to deposit collateral, up to a determined amount, on a protected loan position taken through Concrete when LTV reaches LTV protect level.
Protection Plan	A fixed period (30 days) protection against liquidation, offering a determined amount of credit line with its corresponding opening and claim fees
Loan Position	The amounts of collateral deposited by the user and amount borrowed from the lending protocol
Brokerage	Intermediation between the borrower and the lending platform, done by Concrete protocol to take out a loan.
Policy / Protection	Entity that holds data (rules) for a protected loan and enables liquidation protection by Concrete Protocol.
Portfolio	Entity that holds all loans and protection history of a user has taken. It is a soul-bound ERC-1155 token minted when a user takes out a loan for the first time.
Promised Amount / Credit Line	Amount, in stablecoin, that Concrete will deposit to a protected loan position to avoid liquidation.
Disbursement	A fraction of the promised amount to be deposited
Opening Fee	Fees payable when taking a protecting a loan. These fees are distributed to the protocol and LPs.
Cancellation Fee	In case a borrower cancels a protection before the expiration date, a cancelation fee must be paid.
Collateral Base Asset	Asset deposited as guarantee for obtaining a loan from a lending platform
Protected Loan	A Loan that has a protection plan attached and will benefit from Concrete Protocol protection.
Unprotected Loan	A loan brokered by Concrete but not protected. This loan is part of the borrower's portfolio and can be converted into a protected loan at any moment.
Debt Token	Token borrowed by the user in the lending platform (eg. USDC)
LTV	Loan-to-Value ratio. The ratio between the loan amount and the collateral base expressed in loan asset
LTV Protect	LTV level at which the protocol will disburse credit to a protected loan to avoid foreclosure for protected loans. For unprotected loans, this is the foreclosure limit.
Liquidation Threshold	LTV level at which the lending platform would liquidate the position collateral.
Core Contracts	Main contract for the protocol, responsible of managing all interactions between different components
Lending Platform	Provider of decentralized lending services (AAVE, Compound, et al.). Also referred as lender or money markets.
Borrower	User that is taking out a loan
Loan	Funds provided to borrower in exchange of an amount of supplied collateral
Factory	Contract used to create proxy instances of other contracts
Vault	A vault is a pool where different liquidity providers participate and earn yield from the protocol earn strategies.
Position Token	An NFT (ERC-721) token that is minted as a receipt to represent ownership of staked cTokens and ability to claim staking rewards.
Claim Fees	Fees accrued for using the credit line
APY or Yield	Annual compounded yield that users earn for providing liquidity to vaults. This yield comes from active position management in third-party DeFi platforms and protocol revenue from loan protection, added to CT token emissions.
APR	Interest rate a borrower has to pay for the loan taken on a DeFi platform
Claim	Funds provided from liquidity vaults to protect a loan from liquidation
cToken	Token representation of the asset provided as liquidity by an earner
CT token	Concrete Protocol native token
Revenue	Income that the protocol receives for providing protection service against collateral liquidation in lending platforms.