Main Glossary

Actors

Capital Providers - Users who deploy capital into Funding Vaults. They are referred to as "Dragons" in Octant v2 terminology - a reference to mythical creatures guarding treasure hoards.

Stakers - participants who hold native community tokens and lock them in community staking contracts to earn rewards and contribute to funding decisions. This role exists when Capital Providers enable token-gated, token-weighted community participation in yield distribution.

Allocator - is a Staker or an external actor (e.g token-gated allocator) who actively engages in fund-allocation processes via available allocation mechanisms (e.g. token-weighted voting, quadratic funding rounds, etc.)

Funding Round Operators - Individuals who configure funding rounds. They set parameters, implement review mechanisms, and oversee project submissions throughout the allocation process.

Projects - Entities who 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

Asset: Any ERC20-compliant token that can be transferred.

Shares: ERC20-compliant tokens tracking asset balance/ownership.

Safe: Multi-signature wallet supporting confirmations via EIP-712 signed messages.

Principal: Original assets transferred to vault.

Yield Donation: Returns generated by principal that are donated.

Profit/Loss: Change in total assets after strategy execution.

Available Limits: Configurable deposit/withdraw restrictions.

ERC-4626: A standardized interface for yield-bearing vaults, simplifying transfer, withdrawal, and accounting across protocols.

Yield Source: a protocol or another mechanism that generates yield for the Octant Funding Vaults.

Yield Strategies: aggregates yield from external protocols like lending markets, liquidity pools, and staking systems to donate returns on deposited assetsStaking.

Funding Vaults Concepts

Regenerative Funding Contribution: a capital commitment to contribute yield from a Funding Vault to a defined donation address for a certain period of time

Funding Vault: An ERC-4626 DeFi vault that preserves allocated principal while routing yield to a donation address. The yield is tokenized as ERC20 shares and directed to ecosystem funding addresses, which may include splitting contracts, allocation mechanisms, or direct recipients.

Yield Donating Funding Vault: A Funding Vault designed for non-rebasing tokens that mints and donates generated yield to a designated address.

Yield Skimming Funding Vault: A Funding Vault for rebasing tokens (which naturally appreciate in value over time). It employs a specialized conversion method that accounts for token dilution.

Multistrategy Funding Vault: A variant of Funding Vaults that supports multiple strategies and voluntary lockup periods with non-transferrable shares.

Multiuser Funding: A feature supported by Funding Vaults that enables individuals and smaller communities to participate in ecosystem funding.

"Dragon" Funding Vault: An ERC-4626 DeFi vault integrated with Safe multisig wallets that enables organizations to generate yield from treasury assets while preserving their funds.

Direct Funding Contribution: a capital commitment to contribute funds from a Safe wallet to a defined donation address via Safe Linear Allowance module

Safe Linear Allowance Contract: Safe integration that allows to transfer certain amount of tokens linearly from Safe to a donation address.

Splitting & Routing

Payment Splitter: A payment splitter contract that receives yield shares and distributes them according to predefined splits (e.g., ESF, Dragon ecosystem grants etc.).

Operational Costs (OpEx) - the percentage of the yield the Capital Providers (i.e. Dragons) claim to cover their operational costs.

Donation Address: the address that is used as the destination for yield distributions from vaults.

Split - is a percentage of the yield to be distributed by the donation address to a specific recipient.

Staking

Dragon Token - an ERC20 native community token of the Capital Provider (i.e. Dragon community) that is used in the Community Staker (community staking contract).

Community Staker Community Staker is a smart contract that allows community members to stake tokens (Dragon tokens) and earn rewards while contribute to allocation decisions.

Allocation Mechanisms

Allocation Mechanism: Democratic systems for resource distribution.

Funding Round - a period during which funds from the Dragon Pool are made available for allocation. Community members can vote on how these funds should be distributed.

Funding Stream - a version of the funding round where the allocations are streamed continuously, thus combining the steps of allocations and distribution for the receivers.

Developer Terms

Base Strategy is an abstract contract that serves as the foundation for implementing yield-generating strategies in a tokenized format, parent of DragonBaseStrategy. It provides the core infrastructure for strategies to interact with various DeFi protocols while maintaining standardized accounting and security controls.

Dragon Base Strategy is a base contract for all strategies attached to Dragon Vault. It inherits from BaseStrategy and implements a proxy pattern using delegatecall to interact with a contract that implements the TokenizedStrategy interface. This architecture enables multiple strategies to share core logic while keeping strategy-specific implementations separate.

Tokenized Strategy is a foundational contract that implements ERC4626-like tokenized vault functionality specifically designed for yield-generating strategies. It provides a standardized interface for transferring assets, managing strategy operations, and handling profit/loss reporting while maintaining proper accounting of shares and underlying assets.

Dragon Tokenized Strategy extends TokenizedStrategy to implement a specialized strategy for Dragon Vaults with lockup mechanics and rage quit functionality. The contract introduces voluntary lockup periods for depositors and allows for a controlled exit through a rage quit mechanism that enables gradual withdrawals over time.

Yield Donating Tokenized Strategy: a strategy that implements a specific yield source integration for productive assets that generate profits. When profits are generated, they are converted to shares and minted directly to a donation address.

Yield Skimming Tokenized Strategy: a strategy designed for yield-bearing tokens (like Liquid Staking Tokens - LSTs) that appreciate in value over time. It uses a specialized conversion that accounts for dilution. i.e. deposit stETH, rETH to donate the yield.