Terms and definitions used across Bastion.
Some terms used throughout the documentation or in general may be unfamiliar to some readers. The glossary shall alphabetically reference some terms to help as a guide.

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Annual Percentage Yield, which is the yield/interest after a year, which includes compounding interest. Note that this is different from Annual Percentage Rate (APR), which does not take into account compounding effects.
automated market maker (AMM)
Market makers are essential in an exchange to provide liquidity, control spreads, and maintain slippages. Since cryptocurrency exchanges work 24x7, the need for automated market makers rose. AMMs democratized cryptocurrency trading by doing away with order books and institutional market makers. Instead, AMMs execute trade automatically using algorithms and liquidity pools.
money market
a market service composed of highly liquid assets, incentivizing people to lend money for more productive causes; usually synonymous to a DeFi lending protocol
liquidation threshold
The threshold of a borrow position that will be considered undercollateralized and subject to liquidation. If a collateral has a liquidation threshold of 80%, it means that the loan will be liquidated when the debt value is worth 80% of the collateral value. The liquidation threshold is specified per collateral and expressed in percentage points.
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