Glossary

The building blocks that make up our protocol

Summary of terminology
Market Page
Asset Page
Dashboard
Concept
Definition
ELI5
Total Supply
Total amount of an asset that has been supplied to the liquidity pool.
Total assets added to a pool.
Total Borrow
Total amount of an asset that has been borrowed from the liquidity pool, including accrued interest.
Total loans plus interest in a pool.
Supply APY
The annual percentage yield (APY) that depositors receive for supplying an asset to the pool. This APY is compounding, meaning that interest is earned on the aggregate of the original deposited amount and accrued interest.
Annualised interest % lenders earn for depositing money.
Borrow APY
The annual percentage yield (APY) that borrowers pay for borrowing an asset from the liquidity pool. This APY is compounding, meaning that interest is charged the aggregate of the original borrowed amount and accrued interest.
Annualised interest % that borrowers have to pay for taking out a loan.
Liquidity
The amount of an asset (in dollar value) that is currently available in the liquidity pool to be lent out. 
Amount available to be borrowed from a pool.
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Concept
Definition
ELI5
Net Rate
The effective percentage that lenders or borrowers receive and/or pay on their funds after accounting for any rewards earned on the platform. A negative Net Rate means the user is paying whereas a positive number means the user is recieving a positive return.

This number represents the cost of fund at point in time, and not an annualised figure.
How much money you earn or pay after taking into account all lending, borrowings, and any additional rewards earned.
Reward APR
Annual percentage rate that a user can earn on their funds in the form of native tokens on the platform. 
*This feature is not yet available.
Extra protocol tokens for using the platform.
Utilisation %
The percentage of how much a pool is being used for borrowing. A higher utilisation % will translate to higher Supply APY and Borrow APY.
% of pool that has been lent out.
Market Liquidity
The total amount of assets available to be  lent out in a given liquidity pool, denominated in the native token of the pool.
Amount of liquidity available for borrowing in a particular asset pool.
Interest paid/day
Total dollar value in interest paid out to depositors each day. Interest is calculated from the Supply APY.
Total amount in dollar that lenders earned yesterday as a group.
Reserve
A reserve exists for each asset to ensure there are enough funds to cover potential borrower defaults and liquidation issues. The reserve is accumulated through the Reserve Factor mechanism.
Amount of money  keeping aside for each pool to cover potential shortfall from bad debts.
Reserve Factor
Reserve Factor is a percentage of the spread between supply and borrow interest rates that goes into the Reserve to protect lenders against borrower default.
% of the interest spreads taken to cover potential shortfall from bad debts.
Collateral Factor
The maximum amount of borrowing that can be supported by an asset used as collateral. Collateral Factors are specific to the deposited assets.

For example, a Collateral Factor of 80% means that a user can borrow up to 80% of the value of their collateral. However, for the most accurate gauge on how much a user could borrow, this metric must be used in conjunction with Borrow Factor.
Used to calculate how much money users can borrow using their deposited assets as collateral.
Borrow Factor
A discount applied to borrowing to reflect loan's risk-adjusted value. Borrow Factors are specific to the borrowing assets.

Borrow Factor is used together with Collateral Factor to determine the maximum loan value allowable for users, also known as the Borrow Limit.
A factor used to adjust for borrowing assets' pricing risk.
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Concept
Definition
ELI5
Net APY %
A principal-weighted annualised interest rate a user earns or pays after taking into account their Supply and Borrow positions, including incentives.

This number represents the annualised rate of return at point in time, and not the total return % to date.
Imagine you lend $100 at 5% interest while simultaneously borrow $25 at 10% interest, Your net APY would be +2.5%.
Total Supply
Total amount of assets that have been supplied by the user to the protocol, including accrued interest on the assets. 

*This definition differs from Total Supply in the market page as this is referring to the user's positions only.
Total value that is earning interest.
Total Borrow
This is the total amount of assets that user has borrowed from the protocol and need to repay along with the accrued interest.
Total value borrowed from the protocol along with interest.
Borrow Capacity
The maximum amount a user can borrow based on their Collateral and outstanding Risk-adjusted Liabilities.

For an accurate figure on borrowing, use Borrow Limit.
The maximum amount you can borrow based on what you pledge.
Borrow Limit
The maximum loan value allowable for users to borrow, which is derived from the Borrow Factor and the Collateral Factor.
The maximum amount you can borrow based on what you pledge and what you want to borrow.
Collateral
Deposited assets used by users to enable borrowing from the liquidity pools. On zkLend, deposited assets take the form of minting zTokens.
The assets you deposit so you can borrow. E.g. USDC, ETH.
Risk-adjusted Collateral
An adjusted value of a user's collateral, which is determined by total value of Collateral multiplied by Collateral Factor
How much you can borrow against the pledged collateral.
Liabilities
Market value of borrowers' total outstanding loan positions and accrued interest.
Market value of your borrowing and interest owed.
Risk-adjusted Liabilities
An adjusted value of users' loan positions, which are determined by the Liabilities divided by the Borrow Factor.
A user's liabilities adjusting for risk.
Health Factor
A ratio defined as Risk-adjusted Collateral over Liabilities. If HF is at or below 1.0, users are at risk of imminent liquidation.
A gauge of portfolio health and risk of liquidation.
Loan-to-Value (LTV) Ratio
A measure used in lending that represents the ratio of the Risk-adjusted Liabilities to the value of respective Collateral.

Not in use for liquidation calculations but has an inverse correlation to Health Factor.
Another indicator of portfolio health, it's how much your loan is worth in relation to the value of what you're pledged as collateral.
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Concept	Definition	ELI5
Total Supply	Total amount of an asset that has been supplied to the liquidity pool.	Total assets added to a pool.
Total Borrow	Total amount of an asset that has been borrowed from the liquidity pool, including accrued interest.	Total loans plus interest in a pool.
Supply APY	The annual percentage yield (APY) that depositors receive for supplying an asset to the pool. This APY is compounding, meaning that interest is earned on the aggregate of the original deposited amount and accrued interest.	Annualised interest % lenders earn for depositing money.
Borrow APY	The annual percentage yield (APY) that borrowers pay for borrowing an asset from the liquidity pool. This APY is compounding, meaning that interest is charged the aggregate of the original borrowed amount and accrued interest.	Annualised interest % that borrowers have to pay for taking out a loan.
Liquidity	The amount of an asset (in dollar value) that is currently available in the liquidity pool to be lent out.	Amount available to be borrowed from a pool.

Concept	Definition	ELI5
Net Rate	The effective percentage that lenders or borrowers receive and/or pay on their funds after accounting for any rewards earned on the platform. A negative Net Rate means the user is paying whereas a positive number means the user is recieving a positive return. This number represents the cost of fund at point in time, and not an annualised figure.	How much money you earn or pay after taking into account all lending, borrowings, and any additional rewards earned.
Reward APR	Annual percentage rate that a user can earn on their funds in the form of native tokens on the platform. *This feature is not yet available.	Extra protocol tokens for using the platform.
Utilisation %	The percentage of how much a pool is being used for borrowing. A higher utilisation % will translate to higher Supply APY and Borrow APY.	% of pool that has been lent out.
Market Liquidity	The total amount of assets available to be lent out in a given liquidity pool, denominated in the native token of the pool.	Amount of liquidity available for borrowing in a particular asset pool.
Interest paid/day	Total dollar value in interest paid out to depositors each day. Interest is calculated from the Supply APY.	Total amount in dollar that lenders earned yesterday as a group.
Reserve	A reserve exists for each asset to ensure there are enough funds to cover potential borrower defaults and liquidation issues. The reserve is accumulated through the Reserve Factor mechanism.	Amount of money keeping aside for each pool to cover potential shortfall from bad debts.
Reserve Factor	Reserve Factor is a percentage of the spread between supply and borrow interest rates that goes into the Reserve to protect lenders against borrower default.	% of the interest spreads taken to cover potential shortfall from bad debts.
Collateral Factor	The maximum amount of borrowing that can be supported by an asset used as collateral. Collateral Factors are specific to the deposited assets. For example, a Collateral Factor of 80% means that a user can borrow up to 80% of the value of their collateral. However, for the most accurate gauge on how much a user could borrow, this metric must be used in conjunction with Borrow Factor.	Used to calculate how much money users can borrow using their deposited assets as collateral.
Borrow Factor	A discount applied to borrowing to reflect loan's risk-adjusted value. Borrow Factors are specific to the borrowing assets. Borrow Factor is used together with Collateral Factor to determine the maximum loan value allowable for users, also known as the Borrow Limit.	A factor used to adjust for borrowing assets' pricing risk.

Concept	Definition	ELI5
Net APY %	A principal-weighted annualised interest rate a user earns or pays after taking into account their Supply and Borrow positions, including incentives. This number represents the annualised rate of return at point in time, and not the total return % to date.	Imagine you lend $100 at 5% interest while simultaneously borrow $25 at 10% interest, Your net APY would be +2.5%.
Total Supply	Total amount of assets that have been supplied by the user to the protocol, including accrued interest on the assets. *This definition differs from Total Supply in the market page as this is referring to the user's positions only.	Total value that is earning interest.
Total Borrow	This is the total amount of assets that user has borrowed from the protocol and need to repay along with the accrued interest.	Total value borrowed from the protocol along with interest.
Borrow Capacity	The maximum amount a user can borrow based on their Collateral and outstanding Risk-adjusted Liabilities. For an accurate figure on borrowing, use Borrow Limit.	The maximum amount you can borrow based on what you pledge.
Borrow Limit	The maximum loan value allowable for users to borrow, which is derived from the Borrow Factor and the Collateral Factor.	The maximum amount you can borrow based on what you pledge and what you want to borrow.
Collateral	Deposited assets used by users to enable borrowing from the liquidity pools. On zkLend, deposited assets take the form of minting zTokens.	The assets you deposit so you can borrow. E.g. USDC, ETH.
Risk-adjusted Collateral	An adjusted value of a user's collateral, which is determined by total value of Collateral multiplied by Collateral Factor	How much you can borrow against the pledged collateral.
Liabilities	Market value of borrowers' total outstanding loan positions and accrued interest.	Market value of your borrowing and interest owed.
Risk-adjusted Liabilities	An adjusted value of users' loan positions, which are determined by the Liabilities divided by the Borrow Factor.	A user's liabilities adjusting for risk.
Health Factor	A ratio defined as Risk-adjusted Collateral over Liabilities. If HF is at or below 1.0, users are at risk of imminent liquidation.	A gauge of portfolio health and risk of liquidation.
Loan-to-Value (LTV) Ratio	A measure used in lending that represents the ratio of the Risk-adjusted Liabilities to the value of respective Collateral. Not in use for liquidation calculations but has an inverse correlation to Health Factor.	Another indicator of portfolio health, it's how much your loan is worth in relation to the value of what you're pledged as collateral.

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