Glossary of Drakewell terms - Drakewell

Every Drakewell page uses the definitions below, word for word. When a page mentions one of these terms, it means exactly what this glossary says.

USDdw terms

Term	Definition
Credit vault	A vault through which USDdw accepts capital at a fixed rate, either on a partner venue or run by Drakewell.
Fixed rate	The rate set per vault for its term. Shown live, never promised.
Market-neutral	Strategies designed not to depend on market direction.
Delta-neutral	A position hedged so that moves in the price of the underlying asset have little effect on its value.
Basis trade	A position that holds an asset and shorts its future or perpetual contract, to earn the price difference or funding between them.
Arbitrage	Trading the same or closely related assets across markets to capture price differences.
Over-collateralized private credit	Private loans secured by collateral worth more than the amount lent.
Share price	The value of one USDdw in USDC, read onchain. It rises as the vault accrues interest.
Venue	The protocol or platform that hosts a credit vault, such as Accountable or Venzo.

SPYdw terms

Term	Definition
Collateral	The assets backing SPYdw, across its SPY exposure, its yield, and its hedge.
The floor	The value of the collateral that stays in place while the options run.
The hedge	The S&P 500 call options SPYdw holds to manage its exposure to SPY.
Option ladder	Options bought on a regular schedule with staggered 12-month expiries. Cadence goes from quarterly to monthly.
Epoch	The window in which deposits and redemptions are processed. Up to 7 days.
Early-exit fee	A fee on redemptions made before the end of an epoch.

Shared terms

Term	Definition
Proof of reserves	Live reserve data published by Drakewell.
Onchain	Recorded on a public blockchain and verifiable by anyone.
S&P 500	The S&P 500 index. SPY refers to the ETF that tracks it.

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