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Glossary

Embedded Finance

Embedded Finance - Embedded Finance refers to the integration of financial services, products, and capabilities directly into non-financial platforms and applications, enabling seamless and convenient access to financial solutions within existing user experiences.

Participation Economy - A new kind of economy enabled by Embedr, which allows any kind and size of consumer-facing businesses to plug and start offering financial services to consumers without intermediaries, creating a direct consumer-to-merchant relationship that democratically distributes the value created from financial services.

Embedded Banking - The integration of banking services directly into non-financial platforms and applications, enabling seamless and convenient access to banking solutions within existing user experiences, and allowing any kind and size of merchants to plug and start offering financial services to the consumers without intermediaries.

Plug-n-play Embedded Finance - The seamless integration of financial services into non-financial platforms, allowing businesses to easily offer financial solutions to consumers without the need for intermediaries or complex integrations.

Tokens

COLLATERAL_TOKEN - Collateral Token is the asset that users deposit into their Kasa to mint rUSD. It serves as collateral for the borrowed rUSD and is used to maintain the stability of the protocol.

rUSD - rUSD is the native stable coin of the Embedr Protocol. It is minted by depositing COLLATERAL_TOKEN into a Kasa and can be redeemed for the underlying collateral at any time. rUSD is algorithmically pegged to the US Dollar.

EMBD - EMBD token is the incentive token issued by the Embedr Protocol. It captures the fee revenue generated by the system, primarily from borrowing and redemption fees.

LBRT - LBRT is a royalty token within the Embedr Protocol. It enables users to exchange values between different companies and their services that exist within Embedr.

Core Protocol

Kasa - A Kasa is a user account in the Embedr Protocol that allows users to interact with the Stable Coin Factory. It is used for minting rUSD, depositing collateral, borrowing rUSD, and other related operations.

Collateral Ratio - Collateral Ratio is the ratio of the value of the collateral deposited in a Kasa to the value of the borrowed rUSD. It is used to determine the minimum collateral required to open a Kasa and maintain its stability.

Total Collateral Ratio (TCR) - Total Collateral Ratio (TCR) is the ratio of the total value of all collateral in the protocol to the total value of all borrowed rUSD. It is used to monitor the overall stability of the Embedr Protocol.

Stability Pool - Stability Pool is a pool of rUSD that is used to repay debt from liquidated Kasas. It ensures that the total supply of rUSD remains backed and maintains the solvency of the protocol.

Liquidation - Liquidation is the process of selling the collateral of a Kasa to repay its debt. It occurs when the collateral ratio of a Kasa falls below the minimum collateral ratio. The liquidated collateral is distributed to Stability Pool providers as liquidation gains.

Recovery Mode - Recovery Mode is a state of the Embedr Protocol where the total collateral ratio falls below the %150 threshold.

Revenue Farming Pools - Revenue Farming Pools is a decentralized finance mechanism where users can earn yield through revenue sharing by providing liquidity to real-world businesses