Glossary

Amplification (A). Sets a market's band width: each band edge is (A − 1) / A of the one above. A is 100 for SOL and JitoSOL (1% bands) and 50 for NVDAx (2% bands).

Band. A slice of a market's price grid, and a small market maker that trades collateral for USDC as the oracle moves through it. Every market has 128.

Band trade fee. What a trade with the bands pays: 0.20%, more for two minutes after a fast move. It stays in the band.

Bad debt. Debt a liquidation could not recover. It comes off the lenders' pool.

Conversion. A band selling collateral for USDC as the price falls through it, or buying collateral back as it rises.

Gap. A price move that skips bands in one update, so they sell at the new price instead of along the way.

Gap liquidation price. The price at which a loan's health would reach zero if the price jumped straight there.

Health. Dollars in a loan's bands, plus its collateral at the cautious oracle price less the liquidation discount, minus its debt. Below zero, the loan can be liquidated.

Jump fee. The higher band trade fee after a fast move: one minus the cube of the price ratio, fading over 120 seconds.

Keeper. Anyone who arbitrages the bands, records prices or liquidates loans.

Liquidation discount. The haircut on collateral in health, and the liquidator's margin: 5% on SOL and JitoSOL, 10% on NVDAx.

LLAMMA. Curve's lending-liquidating market maker, the design Taper's bands follow.

Loan discount. How far under the price a new loan's range starts, and part of its borrow limit: 15% on SOL and JitoSOL, 25% on NVDAx.

Max loan-to-value. The most a loan can borrow against its collateral's value at the oracle price when it opens: 55% SOL, 50% JitoSOL, 25% NVDAx.

Range. The bands a loan's collateral is spread over, from its top band to its bottom.

Session. The NVDAx borrowing window the session signer signs for each trading day.

Session signer. The key that signs each trading day's borrowing window on stock markets. Governance appoints it from candidates who stake TAPER for the role.

Soft liquidation. Converting collateral to dollars band by band as the price falls, instead of selling it all at once.

TAPER. Taper's token. Locked, it votes on Taper's markets; staked, it backs the session signer. See TAPER token.

Use. The share of a pool that is lent out. It sets the borrow rate.

Versus holding. What a loan's bands are worth now, against holding the collateral it deposited, both at today's price.

Voting weight. Locked TAPER times the time left on its lock, divided by four years, counting at most four years.