> For the complete documentation index, see [llms.txt](https://docs.elara.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elara.fi/resources/glossary.md).

# Glossary

| Term              | Definition                                                                                                                                                                                                                                                                                       |
| ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| AMM               | Automated Market Maker. A type of decentralized exchange where liquidity is provided by pools rather than order books. Trades are executed against the pool at algorithmically determined prices.                                                                                                |
| Arken             | Elara's initial execution partner, responsible for running concentrated liquidity strategies on stablecoin pairs. ArkenYield is a private corporation currently executing a public listing process through a transaction involving a CSE-listed company, which holds a minority equity position. |
| Auto-compounding  | Yield is automatically reinvested into the position. In Elara's case, returns increase the sELUSD exchange rate rather than being distributed as a separate payout; holders earn yield on their yield without any manual action.                                                                 |
| Brila Ecosystem   | The parent ecosystem within which Elara Finance operates. Elara is a Brila product.                                                                                                                                                                                                              |
| CDP               | Collateralized Debt Position. A mechanism that lets users borrow assets by locking up collateral. On Elara's roadmap for sELUSD: borrow against your staked position.                                                                                                                            |
| CLMM              | Concentrated Liquidity Market Making. A strategy where capital is allocated within a specific price range on an AMM pool rather than across the full price spectrum. Produces higher fee income per unit of capital deployed.                                                                    |
| Composability     | The ability for a token or protocol to plug into other DeFi applications. Both ELUSD and sELUSD are composable: they can be used as collateral, traded, or integrated into other protocols.                                                                                                      |
| DeFi              | Decentralized Finance. Financial services built on blockchain infrastructure that operate without traditional intermediaries like banks.                                                                                                                                                         |
| Depeg             | When a stablecoin loses its target price (e.g., USDC dropping below $1.00). Elara's Price Oracle monitors for depeg events to protect the system from arbitrage on mint/redeem.                                                                                                                  |
| Elara Engine      | The core coordination layer of the Elara system. Manages capital allocation, risk parameters, the liquidity buffer, and yield distribution to sELUSD holders.                                                                                                                                    |
| ELUSD             | Elara's base asset. A dollar-referenced, transferable token received when depositing stablecoins into the system. Does not generate yield on its own.                                                                                                                                            |
| Execution Partner | An external entity that receives allocated capital from the Elara Engine and executes yield-generating strategies within predefined risk parameters. Currently Arken.                                                                                                                            |
| Gating            | A mechanism that delays large redemptions (currently \~24 hours) to allow execution partners to unwind positions without slippage, protecting all participants from forced liquidations.                                                                                                         |
| Liquidity Buffer  | A reserve of stablecoins maintained by the system (currently targeting \~10% of total assets) to service instant redemption requests.                                                                                                                                                            |
| Multisig          | Multi-signature. A security setup where multiple independent keyholders must approve a transaction before it executes. Elara uses multisig quorum for all sensitive operations.                                                                                                                  |
| Oracle            | A service that provides external data (like asset prices) to smart contracts on-chain. Elara uses Chainlink oracles for stablecoin price validation.                                                                                                                                             |
| Price Accrual     | The mechanism by which sELUSD gains value. Instead of receiving more tokens (rebasing), the value of each sELUSD token increases as yield is pushed to the staking contract.                                                                                                                     |
| Quorum            | The minimum number of multisig keyholders who must approve an action before it can execute. Elara requires a supermajority quorum for all admin and transaction operations.                                                                                                                      |
| Rebasing          | A yield mechanism where the number of tokens in your wallet changes to reflect returns. Elara does not use rebasing; it uses price accrual instead, where token count stays fixed but value per token increases.                                                                                 |
| sELUSD            | Staked ELUSD. The yield-bearing wrapper token. Stake ELUSD to receive sELUSD and earn returns through price accrual. Fully transferable and composable.                                                                                                                                          |
| Stablecoin        | A digital asset designed to maintain a stable value, typically pegged to a fiat currency like USD. Common examples include USDC and USDT. Elara accepts stablecoins as deposits and deploys them into yield strategies.                                                                          |
| Utila (UTLA)      | Elara's infrastructure layer. Handles asset routing, settlement, and reporting between the Engine and execution partners. Operates as a technology provider, not a regulated custodian.                                                                                                          |