Main Glossary
Purpose: Define and explain key terminology used throughout the Octant v2 documentation. Audience: Anyone reading Octant v2 docs who needs clarification on terms, concepts, or roles. Level: Beginner | Intermediate | Advanced Source of truth: Octant v2 protocol specifications and architectural documentation. Use this page when: You encounter a term in Octant docs that you need to understand quickly, or you're looking for aliases and legacy terms. Do not use this page for: Step-by-step implementation guides or architectural rationales (see other docs sections for those).
Roles — Core
Capital Providers — Users who supply capital to Octant funding setups. In some contract-level names you may still see the legacy term "Dragon".
→ Learn more: Core Concepts
Stakers — Users who deposit community tokens into staking contracts to earn rewards and, in some setups, gain influence over community participation in yield distribution.
Allocator — A staker or an external actor who actively engages in fund-allocation processes via available allocation mechanisms, such as token-weighted voting or quadratic funding rounds.
Funding Round Operators — Individuals who configure funding rounds. They set parameters, implement review mechanisms, and oversee project submissions throughout the allocation process.
Projects — Entities that apply for and receive funding through allocation rounds run by Capital Providers on Octant v2.
Builders — Developers who extend Octant v2 capabilities by creating custom strategies, allocation mechanisms, dApps, or integrations.
Basic Vault Concepts — Core
Asset — Any ERC-20-compliant token that can be transferred.
Shares — ERC-20-compliant tokens tracking a user's proportional ownership of vault assets.
Safe — A multi-signature wallet supporting confirmations via EIP-712 signed messages.
Principal — The original assets transferred to a vault. In Octant’s yield-donating model, strategy profits are routed away from depositors, and strategy losses are absorbed first by donation-address shares when that buffer exists. Residual losses can still reduce depositor PPS.
Yield Donation — Returns generated by principal that are donated to a configured beneficiary address.
Profit/Loss — The change in total assets after strategy execution, compared to the previous report.
Available Limits — Configurable deposit and withdraw restrictions. Strategies can expose availableDepositLimit and availableWithdrawLimit to reflect upstream protocol constraints.
ERC-4626 — A standardized interface for yield-bearing vaults, simplifying transfer, withdrawal, and accounting across protocols. Both Octant strategies and Octant vaults implement this interface.
→ Learn more: DeFi Concepts Primer
Yield Source — A protocol or other mechanism that generates yield for an Octant strategy vault, such as a lending market, staking contract, or savings vault.
Yield Strategy — A contract that integrates an external protocol or appreciation model and donates returns on deposited assets to a configured beneficiary.
Funding-vault concepts — Core
Funding Vault — A conceptual umbrella term for Octant’s vault-based funding setups. It does not name one concrete contract class. In practice, a funding-vault setup is implemented either as a standalone strategy vault or as a multistrategy vault sitting above one or more strategies.
→ Learn more: Core Concepts
Strategy Vault — A deployable single-asset ERC-4626 vault built on Octant’s strategy framework. Users can deposit into it directly. In the common authoring path, a concrete strategy vault derives from BaseStrategy and delegates shared ERC-4626 mechanics to TokenizedStrategy.
→ Learn more: YDS Introduction
Yield Donating Strategy Vault — A strategy vault for non-rebasing tokens. It generates yield by deploying assets into an external protocol, then mints and donates the resulting profit as shares to a configured donation address.
→ Learn more: YDS Introduction
Yield Skimming Strategy Vault — A strategy vault for appreciating tokens such as wstETH or rETH. It captures exchange-rate appreciation and routes it to the donation address rather than passing it to depositors.
→ Learn more: YSS Introduction
Multistrategy Vault — A deployable ERC-4626 allocator vault that supports multiple attached strategies, configurable allocation limits, debt management, and withdrawal queues. The locked variant (MultistrategyLockedVault) adds a custody-based rage-quit flow for selected shares.
→ Learn more: Multi-Strategy Vaults guide
Multiuser Funding — A feature of funding-vault setups that enables multiple individuals or smaller communities to participate in ecosystem funding collectively.
"Dragon" Vault
This is legacy umbrella terminology sometimes used for Safe-integrated Octant vault deployments. In current developer docs, prefer the concrete contract names (MultistrategyVault, MultistrategyLockedVault) or describe the setup as a Safe-integrated vault.
Regenerative Funding Contribution (product term) — A capital commitment where a user deploys assets into a strategy vault or multistrategy vault and directs the generated yield to a configured donation address. In developer context, this is simply the vault-based funding model.
Direct Funding Contribution (product term) — A capital commitment where funds remain in the user's Safe wallet and the user authorizes periodic withdrawals to a donation address via the Safe Linear Allowance module. In developer context, this is the allowance-based funding model.
Safe Linear Allowance Contract — A Safe integration that transfers a configured amount of tokens linearly from a Safe wallet to a donation address over time.
Splitting & Routing — Intermediate
Payment Splitter — A contract that receives yield shares and distributes them proportionally to multiple predefined recipients, such as allocation mechanisms, operational cost addresses, or community staking contracts. It uses a pull-payment model, so payees must actively claim their share.
→ Learn more: Payment Splitter Patterns
Donation Address — The on-chain address that receives yield from a strategy vault. In YDS, the donation address holds strategy shares that are minted on profit and burned first on loss before holder PPS is affected, but only up to the balance available to burn. At the contract level this is also referred to as dragonRouter.
→ Learn more: Core Concepts
Dragon Router
The smart-contract-level variable name is dragonRouter. It represents the donation address in both Yield Donating and Yield Skimming strategies. The name is kept for historical reasons. The docs use donation address as the canonical term. Changes to dragonRouter use the strategy-layer cooldown flow in TokenizedStrategy, not the vault’s rage-quit custody system.
Operational Costs (OpEx) — The percentage of yield that Capital Providers claim to cover operational expenses, configured via the Payment Splitter.
Split — A percentage of yield to be distributed by the Payment Splitter to a specific recipient.
Staking — Intermediate
Community Token
Also called "Dragon Token" in legacy docs. An ERC-20 native community token of a Capital Provider community, used in the Community Staking contract to earn rewards and participate in allocation decisions.
Community Staker — A smart contract that allows community members to stake community tokens and earn rewards while contributing to allocation decisions.
→ Learn more: Regen Staker guide
Allocation Mechanisms — Intermediate
Allocation Mechanism — A smart contract that manages the distribution of funds based on a configurable algorithm, such as token-weighted voting or quadratic funding.
→ Learn more: TAM Introduction
Funding Round — A time-bounded period during which community members vote on how funds deposited into an allocation mechanism should be distributed to projects.
Funding Stream — A continuous variant of a Funding Round where allocations and distributions are streamed rather than batched, combining the allocation and distribution steps.
Developer Terms — Intermediate (mostly), Advanced (delegation and proxy patterns)
Base Strategy — The abstract contract (BaseStrategy.sol) that custom yield strategies inherit from. It defines the core hook surface (_deployFunds, _freeFunds, _harvestAndReport) while delegating shared ERC-4626 mechanics to the TokenizedStrategy implementation.
→ Learn more: BaseStrategy reference
Dragon Base Strategy
Legacy naming sometimes used in broader "Dragon" deployment discussions. In the audited octant-v2-core release, rage-quit and custody mechanics do not live in a separate strategy base. They live in MultistrategyLockedVault.
Tokenized Strategy — The shared implementation contract (TokenizedStrategy.sol) that handles ERC-4626 logic, accounting, share management, access controls, and profit/loss reporting. It is deployed once per network and reused by strategies via delegatecall.
→ Learn more: TokenizedStrategy reference
Yield Donating Tokenized Strategy — A concrete implementation of TokenizedStrategy for productive assets that generate discrete profits. On report(), realized profit is minted as new shares to the donation address. Losses burn those shares first before affecting user PPS.
→ Learn more: YDS Introduction
Yield Skimming Tokenized Strategy — A concrete implementation of TokenizedStrategy for appreciating tokens such as wstETH or rETH. On report(), exchange-rate appreciation is captured as newly minted value-shares sent to the donation address. Depreciation burns donation shares first before triggering insolvency.
→ Learn more: YSS Introduction
Base Health Check — An optional base contract (BaseHealthCheck.sol) that adds configurable safety bounds to the report() flow. If _harvestAndReport() returns a profit or loss outside the configured profitLimitRatio or lossLimitRatio thresholds, the report reverts before any shares are minted or burned.