Glossary

BANK 
The utility and governance token of the FLOAT Protocol which aids in price capture and support of FLOAT. 
Basket 
A group of crypto assets held by the Protocol and used to aid in the returning of the market price to the target price. In version 1 of the Protocol the basket will only contain ETH. Basket factor The ratio between the value of the assets held in the basket and the value of all the FLOAT in circulation at target price. 
Contraction 
A stabilisation event where the Protocol purchases and burns FLOAT tokens to increase market demand. 
Dutch auction 
A style of auction where the goods are initially offered at a high price and then at decreasing increments until there is a bid. These are used by the Protocol to push the market price of FLOAT to the target price in an expansion. 
Expansion 
A stabilisation event where the Protocol mints and sells new FLOAT tokens to satisfy market demand. 
FLOAT 
The floating currency of Float Protocol 
Market price 
The price of FLOAT on the open market e.g. Uniswap or Sushiswap at a given point in time. 
Minting ceremony 
An event where the initial supply of FLOAT tokens are created and can be purchased with ETH. 
Reverse Dutch Auction 
A style of auction where the goods are offered initially at a low price and then at increasing increments until there is a bid. These are used by the Protocol to push the market price of FLOAT to the target price in a contraction. 
Target price 
The price of FLOAT the Protocol holds as the correct value at a given point in time. 
Tuning period 
A length of time after launch where the Protocol gradually increases the frequency of (reverse) Dutch auctions held by the Protocol. After this period of time Dutch auctions will be able to be held on demand by any participant.

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BANK

Basket

Contraction

Dutch auction

Expansion

FLOAT

Market price

Minting ceremony

Reverse Dutch Auction

Target price

Tuning period