> ## Documentation Index > Fetch the complete documentation index at: https://docs.tori.finance/llms.txt > Use this file to discover all available pages before exploring further. > ## Agent Instructions > Pages whose paths begin with /zh-Hans/, /ja/, /ko/, /vi/, /id/, /hi/, /pt-BR/ or /es/ are machine translations of the English pages, provided for convenience only. They may contain errors or omissions and have no legal effect, and where one differs from the English page, the English page prevails. For anything that will be relied on, read and cite the English page at the same path without the language prefix. # Glossary > Key terms used across Tori and its DeFi integrations The terms you will meet in the app, in these docs and in the protocols Tori integrates with. ## Fundamentals | Term | Meaning | On Tori | | - | - | - | | **APY** | Annual percentage yield: the return over a year, including the effect of compounding. | strUSD's APY compounds through its exchange rate. | | **APR** | Annual percentage rate: the yearly rate without compounding. | Tenor quotes its fixed rates as APR. | | **Synthetic dollar** | A token designed to track \$1, backed by trading positions rather than cash in a bank. | trUSD is backed by delta-neutral trading positions. | | **Delta-neutral** | A position hedged so its value does not depend on whether prices rise or fall. | Tori pairs long and short positions to earn from pricing gaps. | | **Exchange rate** | The value of one vault share in its underlying asset. It rises as the vault earns. | One strUSD is redeemable for more trUSD over time. | | **Gas** | The network fee paid to process a transaction. | Paid in ETH on Ethereum and Arbitrum, MON on Monad, PROS on Pharos and SOL on Solana. | ## Lending and borrowing | Term | Meaning | On Tori | | - | - | - | | **Supply** | Depositing an asset into a lending market so others can borrow it, in return for interest. | Supply USDC to Morpho markets that accept strUSD as collateral. | | **Collateral** | Assets deposited to secure a loan. Loans are overcollateralized: collateral exceeds debt. | strUSD keeps earning while it is posted as collateral. | | **Utilization** | Total borrowed divided by total supplied in a market. Rates rise as utilization rises. | Supply APYs on the strUSD markets move with utilization. | | **LTV** | Loan-to-value: your debt divided by the value of your collateral. | Borrowing \$700 against \$1,000 of strUSD is a 70% LTV. | | **LLTV** | Liquidation loan-to-value: the LTV at which a position can be liquidated. | The Morpho strUSD/USDC market on Ethereum has an 86% LLTV. | | **Liquidation** | When a position reaches its LLTV, a liquidator repays part of the debt and receives collateral plus a bonus. | Debt that grows faster than strUSD, or a fall in strUSD's value, can trigger it. | | **Looping** | Borrowing against collateral to buy more of it, repeatedly, to increase exposure to its returns. | Spiral Stake loops the Morpho strUSD/USDC market in one transaction. | ## Liquidity pools | Term | Meaning | On Tori | | - | - | - | | **Liquidity pool** | A smart contract holding two or more tokens that traders swap against. | The trUSD/USDC pool on Curve. | | **LP token** | A token representing your share of a pool. Withdrawing burns it for your portion of the assets. | Stake a Curve LP token on Convex or Stake DAO for boosted rewards. | | **Swap fee** | A small fee charged on every trade through a pool. Liquidity providers receive a share of it. | On Curve, fees build up in the value of your LP token. | | **Gauge** | A Curve contract where LP tokens are staked to earn CRV and other token rewards. | Convex and Stake DAO stake your LP tokens in the gauge with a boost. | | **Auto-compounding** | Harvesting rewards and reinvesting them into the position automatically. | Beefy's frxUSD/trUSD vault reinvests its rewards each time it is harvested. | | **Impermanent loss** | The gap between holding tokens in a pool and holding them outright, caused by price moves between them. | Small in pools of dollar-pegged tokens, unless one moves off its peg. | ## Pendle | Term | Meaning | On Tori | | - | - | - | | **SY** | Standardized yield: Pendle's wrapper for a yield-bearing token, which it splits into PT and YT. | SY-strUSD wraps strUSD on Pendle. | | **PT** | Principal token: bought at a discount and redeemable 1:1 for its accounting asset at maturity. | PT-strUSD redeems for 1 trUSD worth of strUSD at maturity. | | **YT** | Yield token: receives the underlying's yield and points until maturity, when its value reaches zero. | YT-strUSD collects strUSD's rewards and Cores. YT-trUSD collects Cores. | | **Maturity** | The date a PT becomes redeemable 1:1 and a YT stops accruing. | Each Tori market on Pendle has its own maturity date, shown on Pendle and in the app. | | **Implied APY** | The market's consensus on the underlying's future APY, implied by the price of YT relative to PT. | Buying PT locks in the implied APY as your fixed rate. | ## Vaults and tranches | Term | Meaning | On Tori | | - | - | - | | **Vault** | A smart contract that pools deposits into one strategy. Depositors receive shares in it. | The Tori Ecosystem Vault on Ethereum takes USDC, USDT or trUSD and issues etrUSD. | | **Curator** | The party that sets a vault's risk parameters and allocation rules. Deposits stay in the vault's contracts. | RockawayX curates the Tori Ecosystem Vaults. SharpByte curates a Morpho vault on Monad. | | **Tranche** | A slice of one position with its own risk. The junior tranche absorbs losses first; the senior tranche pays it a premium for that coverage. | Royco offers senior and junior tranches on strUSD. | ## Next steps > [card] [DeFi integrations](https://docs.tori.finance/resources/integrations.md) > > Where these terms apply > [card] [Risk disclosures](https://docs.tori.finance/resources/risks.md) > > Read these before using leverage or third-party markets This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.