# DeFi 2.0 Glossary

#### APR, Annual Percentage Rate

The annualised interest rate, not accounting for compounding.

#### APY, Annual Percentage Yield 

The annualised interest rate, accounting for compounding.

#### BCV, Bond Control Variable 

The scaling variable controlling bond prices. A higher BCV means a lower discount to bonders and higher inflation of the protocol. A lower BCV means higher discount for bonders and lower inflation of the protocol.

#### DAO, Decentralised Autonomous Organisation 

A governance mechanism by which decisions are more trustless and collaborative. Votes are made using a governance token, in our case sSPA.

#### PCV, Protocol-Controlled Value 

The value of the treasury that is controlled by the protocol. A higher value is better.

#### POL, Protocol-Owned Liquidity 

The amount of its own liquidity the protocol owns. Higher is better.

#### RFV, Risk-Free Value 

The amount of funds the treasury guarantees as backing for SPA.

#### TVL 

Total Value Locked The total sum of the value staked in the SPARTACUS DAO in Dollars. A growing TVL is a sign of growth.