Glossary

Provide Liquidity: The act of depositing tokens into a DeFi protocol’s pool or contract to facilitate trading or lending. In Enhancer’s campaign context, “Provide Liquidity” is one category of on-chain behavior it tracks. For example, depositing token A and token B into a Uniswap pool is providing liquidity. Enhancer will track such deposits (and your pool share) to determine your eligibility and share of rewards in a liquidity campaign. The opposite of HODL campaigns, liquidity campaigns require you to put assets to work in a protocol.

Capacity: Some Enhancer campaigns have a capacity limit, which is the maximum amount of total liquidity that will be incentivized. Total Capacity is the cap (in USD or token terms) for the campaign. For instance, a campaign might have a capacity of $1,000,000; once that much liquidity is reached by all participants, no additional rewards are given for extra liquidity. There might also be per-user capacity limits or initial target fill percentages. If a campaign is at capacity, your “eligible balance” might only count up to the cap. Left Capacity refers to how much room is left before reaching the cap. These measures ensure that rewards are not diluted beyond a certain liquidity level.

Annual Percentage Rate (APR): The annualized rate of return for an investment (or cost of a loan) that does not account for compounding. In Enhancer, APR is used to express yields on liquidity mining – for example, a 20% APR means you’d earn the equivalent of 20% of your principal in rewards over one year (assuming the rate stays constant).

Annual Percentage Yield (APY): The annualized rate of return that does include compounding. APY is less commonly referenced in Enhancer’s UI, since rewards are usually quoted as simple APR boosts. However, if rewards are continuously compounded (reinvested), the APY would be higher than the APR. (For instance, a 20% APR compounded continuously might result in ~22% APY.)

Liquidity Provider (LP): An individual or entity that provides liquidity to a DeFi protocol. This could mean adding token pairs to a DEX pool, supplying assets to a lending platform, etc. LPs earn rewards (like trading fees or interest), and with Enhancer, they can earn additional rewards (boosts) for their contributions.

Total Value Locked (TVL): The total value of assets (in USD or another base currency) that are deposited in a protocol or across protocols. For an LP, your personal TVL in Enhancer (sometimes shown as “Total linked Enhancer TVL”) is the sum of all your deposits in campaigns that are tracked by Enhancer. TVL is a measure of how much liquidity is at play.

Campaign: A specific liquidity incentive program run through Enhancer. Each campaign typically corresponds to a particular protocol or pool (e.g., “Provide liquidity to Protocol X’s ETH-USDT pool and earn rewards”). Campaigns have defined parameters such as start/end time, reward type, and conditions. You participate in campaigns by performing the required on-chain behavior (providing liquidity, holding a token, etc.) and signing up on Enhancer.

Boost (Boost Rewards / Top-Up Rewards): Extra incentive rewards distributed by Enhancer on top of the base rewards from a protocol. Boosts are usually expressed as a percentage increase to the native APR (e.g., +20% boost). Enhancer boost rewards are funded by partner protocols’ token allocations or Enhancer’s own treasury. They are calculated each epoch and can significantly increase an LP’s total yield.

Epoch: A discrete time period for reward calculation and distribution in Enhancer. An epoch’s length can vary by campaign (common durations are daily, weekly, etc., or defined by a number of hours). At the end of each epoch, the system takes a “snapshot” of all participants’ contributions and allocates rewards for that period. For example, if a campaign’s epoch is 1 day, rewards are calculated daily. You might see references like “per epoch rewards” – meaning the rewards earned in one cycle.

Snapshot: The moment (or process) of recording the state of a campaign (LP balances, volumes, etc.) for the purpose of calculating rewards. Snapshots occur on a fixed schedule (e.g., every 8 hours or 12 hours) as set by the campaign. Only the state at snapshot times matters for earning rewards in that interval. If you aren’t providing liquidity at the snapshot, you won’t accrue rewards for that period.

Pending Rewards: Rewards that you have earned but have not yet been distributed to your wallet. They are “accrued” and awaiting payout. In Enhancer, once your pending rewards reach the minimum payout threshold (e.g. $10), they will be processed and sent to you. Pending rewards are visible in your portfolio, often with an explanation that small amounts are held until they accumulate enough to avoid excessive gas fees.

Total Earned: The cumulative total of rewards that have been paid out to your wallet through Enhancer. This includes all the boost rewards (and sometimes it may also count the native protocol rewards, depending on context) you’ve received historically. Essentially, once pending rewards are paid, they move into your “Total Earned” metric.

Eligible Balance: The portion of your deposited amount that is counted for rewards in a campaign. Sometimes, protocols set a maximum cap or have certain criteria for how much of your liquidity is eligible (for instance, if there’s a capacity limit or if only certain tokens/counts qualify). Enhancer’s dashboard will show “Eligible Balance” which usually equals your actual deposit unless: (a) you exceeded a campaign’s cap (any excess might not earn rewards), or (b) some of your assets aren’t meeting a requirement. Only the eligible portion is considered for reward calculations.

TPS (TVL per $1 Reward): A performance metric meaning “how much Total Value Locked is attracted per $1 of reward distributed.” It’s a measure of incentive efficiency. A higher TPS means a protocol gets a lot of liquidity for each dollar in rewards spent (efficient), while a low TPS means they spend a lot in rewards but get little liquidity (inefficient). For example, if $1 million in rewards brought $50 million in liquidity, TPS = 50. Enhancer tracks TPS to help protocols adjust their incentive levels.

Real Yield Ratio (RYR): The percentage of total yield that comes from actual protocol revenue as opposed to token incentives. It’s calculated as (real revenue to LPs / total LP rewards) * 100%. A higher RYR indicates that a large portion of LP earnings are from true organic sources (trading fees, interest, etc.), which suggests a healthier, more sustainable protocol. For instance, if an LP earned 10% from fees and 5% from token rewards, RYR = 66.6%. Enhancer highlights RYR since an improving RYR over time means a protocol is relying less on inflationary rewards.

Reward Multiple: A metric that compares the total economic value generated by a protocol to the total incentives distributed. In formula terms, Reward Multiple = (Real Economic Value generated by the protocol) / (Token rewards given out). It shows how many dollars of value the protocol got per dollar of rewards spent. A Reward Multiple near 1× means the protocol’s incentives are roughly equal to the value it generated (okay), whereas a very high multiple (like 10×, 20×) means the protocol gave out far more in rewards than it generated in fees – a sign of excessive incentive spending. Enhancer uses this to advise protocols; a high reward multiple is unsustainable and should be reduced.

Enhancer DAO: The decentralized autonomous organization that governs the Enhancer protocol. The Enhancer DAO manages the treasury (including any tokens accumulated as fees or undistributed rewards) and sets key parameters like boost ratios and partnership approvals. When we say rewards are distributed from the “Enhancer DAO treasury,” it means the DAO holds the pool of tokens provided by projects and then disburses them each epoch according to the rules. Governance decisions (like changing policies or adding new features) would presumably be voted on by DAO members (when a token/governance system is in place).

Whitelist: In Enhancer’s context, this refers to the list of wallet addresses that are registered and eligible to receive rewards. When you sign the platform terms with your wallet, your address gets whitelisted. Only whitelisted addresses (i.e., known participants who agreed to terms) will be counted in reward distributions. Similarly, some campaigns might have their own whitelist (for example, if a partner protocol only wants certain approved users, or has a pre-registration list). “Whitelist required” means you’d need to be on that list to participate.

HODL: A crypto slang term for “hold,” meaning to keep assets in your wallet without selling. In Enhancer, HODL is used as a type of campaign or on-chain behavior. A “HODL campaign” means you must hold a specific token in your wallet over time to qualify for rewards. There’s no other action like providing liquidity; you just prove you still have the tokens. It’s essentially rewarding loyal holders. If you sell or move the token out of your wallet, you break the HODL condition and won’t earn further rewards from that campaign.