Key Terminology

The terms you should know before diving into Coral Finance

Premium

It refers to the price difference between native token and corToken. Theoretically, premium has no limits that range from 1x -> infinity. Since premium depends on the initial liquidity of the premium pool, it will not be too much deviated from the actual value of the native token. Similar to Uniswap and other Dexs, the first one who creates the premium pool can set up the premium for it.

Premium Pool

Premium pools consists of corTokens and stables (USDT, USDC, etc), where users can deposit liquidity, unfreeze corTokens and gain high-yield returns. Each premium pool is initiated with independent liquidity pool instead of liquidity aggregation allocated to all premium pools.

CorToken

CorTokens are Synthetic Leveraged Assets (SLA) that magnifies the returns of underlying assets, enabling higher potential gains without owning the asset directly. It leverages pooled resources and strategic reinvestments, offering a high-reward investment avenue along with manageable risk within the DeFi space. Y

These corTokens represent your underlying claim to the assets you use to get corTokens. You can always cortokenize native tokens and tokenize them back at 1:1 any time, regardless of the time of Tide.

CorTokens are transferable and tradable here, however, whichever wallet holds the corTokens can claim the underlying assets.

Pair Token

Pair token is the token paired with corToken to set up the liquidity pool.

Example: corBTC - USDT pool where USDT is the pair token.

corLiquidity Provider (corLP)

CorLiquidity Providers (or corLPs) are users that stake their corTokens in that specific corToken premium pool (left-sided liquidity), in order to gain the access to unlock corTokens that are frozen after cortokenization.

CorLPs earn % APR rewards in the form of corTokens and transaction fees. This APR is a variable rate which is dependent upon a number of factors, discussed more in depth in the Rewards and Incentives section.

CorLPs assets are then queued to be deployed on the next Tide. corLPs reward emissions don't begin until the beginning of the following Tide.

Deposit Provider (DP)

Deposit Providers (or DPs) are participants that deposit liquidity into a specific premium pool （right-sided liquidity) in order to contribute to the inventory that will then be paired and deployed as liquidity.

LPs earn % APR rewards in the form of CORL, transaction fees and POAs. This APR is a variable rate which is dependent upon a number of factors, discussed more in depth in the Rewards and Incentives section.

DPs assets are then queued to be deployed on the next Tide. DPs reward emissions don't begin until the beginning of the following Cycle.

Protocol Controlled Assets (PCAs)

PCAs are the corToken assets taxed on unlocking and owned by Coral Finance's Treasury.

corSwap

corSwap is an Automated Market Maker (AMM) and is the only place to trade corTokens.

Tide

Coral Finance runs based on Tides, which will be set to weekly basis. You can see the current Tide and how long will get to the next Tide on the top of website.

There are several key features correlating with Tide:

1. Single-Sided Liquidity Pool (SSLP): SSLPs are indexed and will be consecutively, but independently, set up upon Tide. Although the liquidity is added separately, the total liquidity in specific premium pool is the sum of SSLPs of each Tide. See for more info.

2. Assets deposited and withdrawn: Assets deposited mid-Tide only become 'active' when a new Tide begins. Assets requested to be withdrawn cannot be fully withdrawn until a new Tide begins.