Assessment of creditworthiness by agencies (Moody's, S&P, Fitch). Ranges from AAA (near risk-free) to junk (BB+ and below). US Treasuries are AAA-rated. Private credit DeFi protocols must evaluate risk without formal ratings, a key risk factor.
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Assessment of creditworthiness by agencies (Moody's, S&P, Fitch). Ranges from AAA (near risk-free) to junk (BB+ and below). US Treasuries are AAA-rated. Private credit DeFi protocols must evaluate risk without formal ratings, a key risk factor.
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Think of it as a market mechanic used to price, route, or move capital through liquidity apps.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Credit Rating (credit-rating) Category: DeFi Definition: Assessment of creditworthiness by agencies (Moody's, S&P, Fitch). Ranges from AAA (near risk-free) to junk (BB+ and below). US Treasuries are AAA-rated. Private credit DeFi protocols must evaluate risk without formal ratings, a key risk factor. Related: Fixed Income, Private Credit, T-Bill (US Treasury Bill)
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Asset class comprising debt instruments paying regular, predetermined interest and returning principal at maturity. Includes government bonds, corporate bonds, T-bills, and money market instruments. Solana's RWA ecosystem is primarily fixed-income-focused.
Debt financing provided directly by non-bank lenders to borrowers, bypassing public markets. On-chain protocols originate loans using DeFi capital pools. On Solana, Maple Finance provides institutional lending and Credix finances fintech in emerging markets.
Short-term US government debt (4-52 week maturity) sold at discount, redeemed at par. Considered safest short-term investment. Most popular RWA category on-chain — Ondo's USDY and BlackRock's BUIDL hold T-bills.
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Annual interest rate paid by a bond issuer as percentage of face value. A 5% coupon on $1,000 bond pays $50/year. In tokenized bonds, coupon payments are automated as on-chain distributions. T-bills are zero-coupon (purchased at discount, redeemed at par).
Debt financing provided directly by non-bank lenders to borrowers, bypassing public markets. On-chain protocols originate loans using DeFi capital pools. On Solana, Maple Finance provides institutional lending and Credix finances fintech in emerging markets.
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Asset class comprising debt instruments paying regular, predetermined interest and returning principal at maturity. Includes government bonds, corporate bonds, T-bills, and money market instruments. Solana's RWA ecosystem is primarily fixed-income-focused.
Debt financing provided directly by non-bank lenders to borrowers, bypassing public markets. On-chain protocols originate loans using DeFi capital pools. On Solana, Maple Finance provides institutional lending and Credix finances fintech in emerging markets.
Short-term US government debt (4-52 week maturity) sold at discount, redeemed at par. Considered safest short-term investment. Most popular RWA category on-chain — Ondo's USDY and BlackRock's BUIDL hold T-bills.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.