Glossary

Backing. How much of the underlying token each log token is backed by. Measured in that token, and designed to only go up.

Burn. Destroying tokens permanently. Chop burns 15% of fees as log tokens, then burns 20% of the $CHOP funded by the remaining fee value after any partner share.

Farm. Adding log tokens and $CHOP to a log's pool and staking the liquidity to receive the farmer share of $CHOP funded by fees.

Gap. How far a log token's price is from its backing, in %. The log-side round trip costs about 1.5%, and the $CHOP market can add up to another 1% before arbitrage pays.

Harvest. Claiming your rewards.

Impermanent loss. The value you give up by providing liquidity instead of holding, when prices move. It shrinks if prices come back.

Liquidity (LP). Tokens deposited in a pool so others can trade against them.

Log. A vault that holds one token and issues a log token in return.

Log token. The token a log issues, like chETH. It trades in its own pool against $CHOP.

Paid to farmers. Rewards deposited for a log's farmers since launch, read from the chain.

Partner fee. An optional share of a log's fees sent to a partner. It starts at 0%, cannot exceed 5%, and can only be lowered after creation.

Slippage. How far the price may move between quoting and confirming before a transaction fails instead.

Treasury share. The share of remaining fee value routed to the protocol before the $CHOP swap. It is locked at 0%, so nothing goes to the protocol or team.

TWAP. Time-weighted average price. Chop uses a 10-minute average when converting fees into $CHOP.

Unwrap. Burning log tokens to get the underlying token back.

Wrap. Depositing a token into a log to receive log tokens.