Glossary
Key terminology & definitions
For Retail / Permissionless DeFi
Yuzo
A Bitcoin-native capital markets infrastructure layer enabling governance-directed liquidity mining, staking vaults, and programmable emission routing.
Yu DAO
The onchain governance system responsible for protocol-level decisions within Yuzo. Governance authority is exercised through veWAIFUS voting power.
Governance
The collective decision-making process of the Yu DAO. Governance actions are executed onchain and may modify emission parameters, vault eligibility, gauge allocations, and other protocol configurations.
Governance Proposal
A formal onchain submission requesting a protocol-level change. Proposals must meet quorum and minimum support thresholds to pass.
Quorum
The minimum percentage of total veWAIFUS supply required to participate in a proposal vote for the result to be valid.
Minimum Support
The required percentage of “For” votes relative to total votes cast for a proposal to pass.
Deterministic Execution
A system design in which outcomes are calculated based on predefined logic and publicly known parameters, without discretionary intervention.
WAIFUS (BRC20)
The fixed-supply governance token of the Yu DAO. WAIFUS has a maximum supply of 21,000,000 tokens and cannot be minted beyond this cap.
veWAIFUS (Vote-Escrowed WAIFUS)
A non-transferable governance token received by locking WAIFUS. Voting power decays linearly over the lock duration.
Vote-Locking
The process of locking WAIFUS for a defined period (minimum 1 week, maximum 4 years) in exchange for veWAIFUS governance power.
veWAIFUS Decay
The linear reduction of voting power over time as the unlock date approaches. veWAIFUS balance reaches zero at expiry.
Circulating Supply
The portion of WAIFUS not currently vote-locked and therefore freely transferable.
Emission
Incentive distributions allocated to liquidity providers. Emissions may consist of veWAIFUS voting power or third-party token allocations.
veWAIFUS LP Emissions
Governance voting power emissions distributed exclusively through the WAIFUS mining vault. These emissions grant veWAIFUS, not WAIFUS.
Third-Party Emissions
Token allocations provided by external projects for liquidity mining. These emissions are routed through gauges and allocated via veWAIFUS voting.
Gauge-Directed Emissions
A governance-based mechanism that determines how emissions are distributed across eligible vaults according to veWAIFUS voting weight.
Emission Settlement
The deterministic calculation and finalization process by which emissions are allocated, accrued, and made claimable.
Relative Weight
The proportional share of total veWAIFUS voting power assigned to a specific gauge during a voting cycle.
Liquidity Provider (LP)
A participant who supplies paired assets to a liquidity pool and receives LP tokens representing their proportional share.
LP Tokens
Tokens representing a participant’s share in a liquidity pool. LP tokens may be staked in mining vaults to earn emissions.
Mining Vault
A staking contract that accepts LP tokens and distributes emissions according to gauge allocation and boost eligibility.
Gauge
A voting-controlled allocation mechanism associated with a mining vault. Determines that vault’s share of emissions.
Gauge Weight
The amount of veWAIFUS voting power assigned to a gauge. Determines the percentage of total emissions allocated to the associated vault.
Gauge Voting
The process by which veWAIFUS holders assign voting weight to gauges to influence emission allocation.
Boost Mechanism
A multiplier system that increases mining emissions for LP positions when the participant holds veWAIFUS.
Boost Multiplier
The calculated reward amplification factor based on veWAIFUS balance, LP position size, and vault parameters.
Boost Eligibility
The condition requiring both an active veWAIFUS lock and an LP staking position in a gauge-enabled vault.
Incentive Marketplace
A system in which vaults compete for emission allocation through veWAIFUS governance voting.
Indexer
An offchain system that interprets Bitcoin inscription data and computes deterministic state transitions.
Onchain Voting
Governance activity recorded and verifiable on Bitcoin through protocol-defined mechanisms.
Vault Parameters
Configurable settings for a mining vault, including emission rates, boost caps, eligibility conditions, and allocation limits.
Emission Cycle
The recurring period during which gauge weights are calculated and emissions are distributed.
Governance Attack
An attempt to manipulate voting outcomes through short-term token acquisition or coordinated voting.
Parameter Modification
A governance-approved change to system configuration such as emission rates or boost caps.
veWAIFUS Portal
The dashboard for tracking active vault positions, accrued emissions, boost status, and claimable rewards.
Gauges Portal
The interface used by veWAIFUS holders to allocate voting weight across eligible mining vaults.
For Institutions / Permissioned DeFi
Bitcoin Capital Markets
The issuance, settlement, and management of financial instruments directly on Bitcoin without reliance on external execution environments.
Asset Issuance Infrastructure
The tooling and protocol logic that enables digital asset creation on Bitcoin, including:
Token standard definition
Metadata schema
Ownership tracking
Mint and redemption logic
Transfer restriction enforcement
This infrastructure supports full asset lifecycle management anchored to Bitcoin.
Tokenized Real-World Assets (RWA)
Digitally represented financial instruments whose ownership is recorded on Bitcoin, while underlying legal rights remain governed by offchain agreements.
Settlement Infrastructure
The execution and clearing logic that finalizes asset transfers and capital flows.
Includes:
Trade execution logic
Liquidity coordination
Position accounting
Deterministic state updates
Collateral enforcement
Yuzo provides programmable settlement logic without acting as a counterparty.
Deterministic Settlement
A predefined execution model where trade outcomes and state transitions are calculated according to transparent rules rather than discretionary decision-making.
Liquidity Routing
The programmatic direction of capital across liquidity venues according to defined parameters or institutional strategy logic.
Clearing Logic
The automated reconciliation of positions following execution, ensuring asset balances and obligations are updated consistently.
Collateralization Framework
The rules governing how assets may be pledged, valued, and liquidated within lending or structured financial products.
Price Oracle Integration
Mechanisms used to reference market prices for valuation, collateral thresholds, or structured product calculations.
Lending Infrastructure
Programmable logic enabling overcollateralized borrowing and lending within defined risk parameters.
Borrowing Framework
Rules defining collateral requirements, liquidation thresholds, and interest rate mechanics.
Staking Mechanism
Time-based capital commitment structures used to align incentives or govern participation.
Incentive Distribution Logic
The deterministic allocation of token incentives to liquidity providers or structured product participants.
Liquidation Mechanics
Predefined enforcement rules that trigger asset redistribution when collateral thresholds are breached.
Risk Parameterization
Configurable variables governing capital requirements, collateral ratios, and system exposure limits.
Structured Vault Architecture
Programmable vehicles that aggregate capital into predefined strategies, such as:
Yield aggregation
Collateralized lending
Index replication
Structured payout profiles
Programmable Capital Logic
Custom execution rules defined by issuers or funds to automate capital behavior.
Composable Financial Primitives
Interoperable contracts that allow institutions to combine issuance, settlement, lending, and liquidity logic into structured strategies.
Tranching Mechanism
Programmable structuring of capital into risk-tiered segments with differentiated payout logic.
Index Basket Construction
The creation of tokenized baskets representing weighted exposure to multiple underlying assets.
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