Glossary

Backing — the (underlying, direction) pair a coin is tied to, e.g. NVDA 5× long. Leverage is always 5×. Fixed at launch, permanently.

Backing LT shares — how much of its leveraged token a specific coin owns. Tracked on-chain per coin, so no off-chain bookkeeping can lose count of what a coin is owed.

Breathing — capital moving between a coin's pool and its perp position as the coin grows and shrinks. Harvest pushes capital out to the hedge; expand brings it home as depth.

Buyback & burn — spending realized perp gains to market-buy the coin on its own pool, then burning a share of what was bought. The mechanism that turns hedge profits into price and scarcity.

Decay — the value a constant-leverage position loses to volatility even when the underlying ends flat. A ±5% round trip costs a 5× position 6.25%. Structural, not a fee.

Expand — redeeming backing LT, recalling the margin from Lighter, and adding it to the pool as WETH depth just below spot.

Floor (hedge activation) — the pool WETH value a coin must reach before any hedging happens, ≈ $11,600. Below it, a coin is a pure memecoin.

Floor position — the protocol's single-sided WETH range sitting just below spot, which buys the coin if the price dips into it.

Funding — the periodic payment between perp longs and shorts that keeps a perpetual anchored to spot. Charged on notional, continuously, whether or not the coin trades.

Harvest — pulling excess WETH out of a coin's pool, converting it to USDG, and minting the backing LT to fund the perp position.

Hedge equity — the current dollar value of a coin's perp position, signed by the keeper and published on-chain. The coin's real, verifiable treasury.

Keeper — the off-chain daemon that manages perp positions on Lighter, signs and posts NAV, and triggers harvest, expand, reanchor and buyback. The system's trust point.

Keep target — the share of a coin's capital the protocol holds in the pool as visible depth rather than as perp margin. About 70% for a small coin, tapering toward a 35% floor as it grows.

Ladder / main position — the protocol's single-sided range of coin above spot. Buys walk up it, which is what makes a fresh launch price like a bonding curve on a real pool.

Leveraged token (LT) — an ERC-20 whose value is a real perp position's equity divided by its supply. The tokenized form of a coin's backing. Rebalanced to hold constant leverage, so it decays rather than liquidating.

Lighter — Robinhood Chain's native perpetual exchange, where every hedge actually runs.

LP gating — the rule, enforced by LpGuardHook, that only the launcher may add liquidity to a coin's pool. Kills the parasitic-LP attack; costs third-party aggregator visibility.

NAV (net asset value) — the value of one unit of a leveraged token: position equity ÷ supply.

Oracle staleness — the age limit past which a posted NAV is refused. Beyond it the vault's money path reverts and mint/redeem freeze — deliberately, rather than transacting on an old number.

PERP — the platform token. Backed by a HOOD 5× long like any coin here, and bought and burned in full with the protocol's 0.5% share of every swap. Written in capitals throughout to distinguish it from the perp, the perpetual position that backs every coin.

Reanchor — re-centring a coin's ladder on the current price so depth keeps tracking spot.

Redeem queue — the settlement path for a redemption larger than the vault's idle cash buffer. The keeper recalls margin and the claim settles when it lands, rather than reverting.

Single-sided — a liquidity position holding only one of the pool's two assets. A coin launches as 100% coin, 0 WETH.

Slot — an isolated (sub-account, market) position on Lighter assigned to a live coin, so its outcome is its own bet. Bounded in number; released only on proof the position is closed and the margin is home.

USDG — the settlement stablecoin (6 decimals) the hedge leg routes through on Robinhood Chain. Trading is in ETH/WETH.

Wipe — the backing reaching zero. At 5×, a −20% underlying move between rebalances does it arithmetically.