> For the complete documentation index, see [llms.txt](https://jpydf.gitbook.io/jpy-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jpydf.gitbook.io/jpy-defi/reference/glossary.md).

# Glossary

## JPY DeFi

The name of the service and protocol that issues JPYdf.

## JPYdf

A crypto-asset-backed stablecoin that aims to track the value of the Japanese yen, issued on-chain against crypto assets and stablecoins as collateral. Its reference target is ¥1 per JPYdf, but its market price can rise above or fall below that target.

## Core

The borrowing, liquidation, and redemption core inherited from Liquity v2.

## Branch

An independent market for one collateral type. Each branch has its own Stability Pool, price feed, and parameters.

## Trove

A borrowing position used to deposit collateral and borrow JPYdf. It is represented as an NFT and labeled a "loan" in the app. Transferring it moves ownership of the position with its collateral, debt, rate, and status.

## Underlying asset

The actual collateral asset before conversion into a dToken (wstETH, USDC).

## dToken

An ERC-20 token that records, at 1:1, the claim against a deposited underlying asset. The Core treats it as collateral.

## Backing ratio

The value of the underlying asset held by the Vault relative to dToken claims plus unpaid withdrawal requests, capped at 1.0. It is multiplied into the collateral's yen price.

## Liquidity buffer

The underlying asset the Vault keeps for immediate withdrawals.

## In-kind redemption

Burning dTokens to withdraw the underlying asset. It is a separate mechanism from JPYdf redemption.

## Upfront fee

A fee added to debt on new and additional borrowing, equal to seven days of the branch's weighted average interest rate applied to the borrowed increase.

## Individual Delegate

A delegate that can change only one Trove's interest rate within the rate range and minimum change interval set by its owner. It cannot operate on collateral or debt.

## Batch Manager

A delegate that manages the rates of multiple Troves under one policy. A management fee is added to participating Troves' debt.

## Add Manager / Remove Manager

Separate permissions over a Trove's collateral and debt operations. An Add Manager can only add collateral and repay; a Remove Manager can also withdraw collateral, borrow more, and close. If the Add Manager is unset, anyone can add collateral and repay.

## Zombie Trove

A Trove whose debt fell below the minimum debt through redemption and that left the rate-ordered redemption sequence. It still accrues interest and remains subject to redistribution and liquidation, and restoring its debt to the minimum returns it to a normal Trove.

## Stability Pool

The mechanism that holds deposited JPYdf used to offset debt during liquidations. Part of the borrowing interest is recorded as claimable JPYdf in proportion to each deposit. During liquidation, collateral corresponding to the JPYdf used in offsets becomes claimable.

## JPYdf redemption

An on-chain exchange of JPYdf for collateral (dToken). Normal redemption calculates the collateral amount using a reference of ¥1 per JPYdf before fees and the protocol’s redemption price. It does not pay fiat yen or guarantee the collateral’s market value.

## MCR

Minimum Collateral Ratio. An individual Trove whose collateral ratio falls below it becomes subject to liquidation.

## BCR

The collateral-ratio margin above the MCR required when joining a Batch Manager and when adjusting collateral or debt while in the batch. It is not the liquidation threshold.

## CCR

Critical Collateral Ratio. If the branch-wide collateral ratio falls below it, operations that lower the collateral ratio are restricted.

## SCR

Shutdown Collateral Ratio. If the branch-wide collateral ratio falls below it, anyone can permanently shut down the branch, and the shutdown is irreversible.

## Protocol Treasury

Protocol revenue held for uses approved through governance, separate from the Foundation's operating assets.

## PIL

Protocol Incentivized Liquidity: incentives for JPYdf liquidity on exchanges and other venues. One potential use of the Protocol Treasury.