📚Glossary

Some terms used throughout the documentation or within our community may be unfamiliar to new users. Below, we list some common terms that may help with your understanding of both Chimera and the DeFi ecosystem as a whole.

Term	Description
APR	Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors. It does not take into account compounding interest.
APY	The annual percentage yield (APY) is the real rate of return earned on an investment when taking into account the effect of compounding interest.
Bonding	Bonds are units of debt issued by the protocol at a discount and securitized as tradable assets. Bonding is a one way exchange of your assets for CULT tokens at a discount to market price.
Protocol-Owned Liquidity	A term ushered in by the Olympus framework, whereby a crypto project owns the overwhelming majority of its own liquidity. This ensures that token holders will always be able to buy or sell tokens without needing to rely on the general population to provide liquidity for the token pair.
Rebase Token	A rebase token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token's price fluctuations. Stablecoins that maintain their peg using a mint/burn system are considered rebase tokens.
Rebase	Rebasing is the process of minting new CULT tokens that are paid to stakers. This is done to counteract the inflation that the token receives from issuing bonds. sCULT stakers balance will increase upon each rebase, based on the current rebase APR. Rebasing occurs every 8 hours.
Faith Points	Faith is the cornerstone of (4,4). The more Faith Points you have, the more of a claim to the treasury you have. Faith Points are accumulated based on how much sCULT you have staked, as well as the generation rate.
Pray	Rituals are important. Praying to Chimera is important. Praying should be done at least once every 3 days, but can be done as often as once every rebase (8 hours). Praying increases the balance of your Faith Points and serves as a boost to the regular generation rate.