Glossary

Adaptive Yield Mechanism (AYM)

A dynamic interest rate model that adjusts staking and liquidity rewards in real-time based on market demand, risk levels, and liquidity conditions.

Airwallex

Airwallex is a global financial technology company that provides cross-border payment solutions, multi-currency accounts, and financial infrastructure for businesses of all sizes. It enables fast, cost-effective, and seamless international transactions, eliminating traditional banking inefficiencies.

Algorithmic Market Maker (AMM)

A decentralized trading mechanism that uses smart contracts to provide automated liquidity. AMMs replace traditional order books with liquidity pools, allowing for trustless token swaps.

API (Application Programming Interface)

An API (Application Programming Interface) is a set of rules and protocols that allow different software applications to communicate with each other. APIs enable systems, applications, or services to exchange data and functionalities without requiring direct user interaction.

Automated Market Intelligence (AMI)

A protocol that continuously analyzes on-chain and off-chain data (e.g., sales performance, transaction flows, market sentiment) to optimize investment decisions.

Automated Liquidity Assurance Reserve (ALAR)

A decentralized reserve pool that guarantees minimum yields for senior tranche investors. ALAR combines merchant collateral, chain incentives, and stablecoin rewards to stabilize returns and absorb liquidity risks. ALAR buyback or sell token to stabilise prices solely based on the Price-to-Earning ratio (PE), with 8 PE as the target buyback price and 15 PE as the target sell price.

Bridge Protocol

A cross-chain solution that enables the transfer of assets, data, and smart contract interactions between different blockchain networks.

Collateralized Debt Position (CDP)

A financial instrument where assets (e.g., stablecoins, cryptocurrencies) are locked in a smart contract as collateral to generate loans or liquidity.

Cross-Chain Liquidity Aggregation

A mechanism that consolidates liquidity from multiple blockchain networks, improving efficiency and reducing price slippage in decentralized trading.

DAO (Decentralized Autonomous Organization)

A blockchain-governed entity where PST holders vote on protocol decisions (e.g., merchant onboarding, fee adjustments). Proposals are executed via smart contracts, eliminating centralized control while ensuring transparency.

Days Inventory Outstanding (DIO)

Days Inventory Outstanding (DIO) is a financial metric that measures the average number of days a company takes to sell its inventory after acquiring it. It is a key indicator of operational efficiency and inventory management, especially for e-commerce businesses and retail operations.

Decentralized Finance (DeFi)

A financial ecosystem built on blockchain that eliminates intermediaries (e.g., banks, brokers) by using smart contracts to provide services like lending, borrowing, and trading.

Decentralized Governance

Refers to a system of decision-making where control and authority are distributed among network participants rather than being concentrated in a central entity. This governance model is commonly used in blockchain protocols, DAOs (Decentralized Autonomous Organizations), and DeFi projects to ensure transparency, fairness, and community-driven evolution.

Decentralized Identity (DID)

A self-sovereign identity framework that allows users to control their digital identity and credentials without relying on centralized entities.

Delegated Staking

A mechanism where users stake tokens and delegate their voting power or yield-earning capabilities to a third party, often in exchange for passive rewards.

Dynamic Yield Adjustment (DYA)

A protocol mechanism that adjusts yield rates dynamically based on market conditions, liquidity levels, and risk factors.

E-commerce Tokenization

The process of converting e-commerce revenue streams, inventory, or store equity into tradable digital tokens. Enables fractional ownership and liquidity for traditionally illiquid assets.

Escrow Smart Contract

A smart contract that holds funds or assets in trust until predefined conditions are met. Used in merchant payments and automated dividend distribution.

Impermanent Loss

The temporary loss of funds that liquidity providers experience when the price ratio of paired assets in a liquidity pool changes relative to their original deposit.

Key Permission Smart Contract (KPSC)

A proprietary smart contract that binds merchant accounts (e.g., Amazon Seller Central) to blockchain logic. Automatically intercepts 10% of gross revenue at the payment gateway, ensuring tamper-proof dividend enforcement.

Layer 2 Scaling Solutions

Blockchain frameworks (e.g., Optimistic Rollups, zk-Rollups) that enhance transaction speed and reduce fees by processing transactions off-chain while maintaining security on the main chain.

Liquidity Pool (LP)

A decentralized exchange mechanism where users stake paired tokens (e.g., PST/USDC) to enable trading. LP providers earn fees and incentives while ensuring market liquidity.

Market-Making Bot

An automated trading system that provides liquidity to decentralized exchanges by continuously placing buy and sell orders.

Medium-Sized Businesses (SMBs)

Medium-sized businesses (SMBs) refer to companies that fall between small and large enterprises in terms of annual revenue, employee count, and operational scale. The definition of SMBs varies by industry and region, but they are generally characterized by:

• Employee Count: Typically between 50 and 500 employees (though thresholds may vary by country).

• Revenue Range: Annual revenue generally falls between $10 million and $1 billion.

• Operational Complexity: More structured than small businesses but not as resource-intensive as large corporations.

• Growth Potential: Often in a scaling phase, with expanding market presence and increasing digital adoption.

SMBs in the E-Commerce and Blockchain Ecosystem

• E-commerce SMBs leverage platforms like Shopify, Amazon, and WooCommerce to scale operations without requiring massive upfront capital.

• Blockchain-based SMBs integrate DeFi, tokenization, and automated financial processes to optimize liquidity, streamline payments, and access alternative financing solutions.

Merchant Risk Assessment Score (MRAS)

A proprietary scoring model that evaluates e-commerce merchants' risk profiles based on revenue consistency, chargeback rates, and operational history.

Multi-Party Computation (MPC) Wallet

A highly secure wallet where multiple parties collaboratively generate and manage cryptographic keys without exposing them to a single point of failure.

On-Chain Revenue Streaming

A mechanism that continuously redirects a portion of a merchant's revenue to investors or token holders in real time via smart contracts.

Oracle Network

A decentralized system that feeds external real-world data (e.g., asset prices, weather conditions, economic indicators) into smart contracts.

Performance-Linked Stake

Collateral (15% of merchant market cap) locked in ALAR. Gradually unlocks as merchants hit revenue targets, aligning merchant incentives with investor returns.

Profit Share Token (PST)

A digital token representing fractional ownership of tokenized e-commerce cash flows. Delivers automated 10% gross revenue dividends via smart contracts and grants governance rights.

Protocol-Owned Liquidity (POL)

A liquidity model where the protocol itself owns and manages liquidity pools, ensuring stability and reducing reliance on external LPs.

Qupital

A leading e-commerce financier managing $2B+ in loans since 2018. Acts as PST’s underwriter, vetting merchants using real-time sales data and maintaining a 0.1% default rate.

Revenue-Based Financing (RBF)

A funding model where businesses receive capital in exchange for a percentage of future revenue, often structured as tokenized cash flows.

Smart Contract Risk Mitigation (SCRM)

A set of automated security measures, including audit trails, kill switches, and fail-safe mechanisms, to prevent vulnerabilities in blockchain contracts.

Smart Contract Dividend Wallet

An on-chain, programmatic wallet that automatically collects intercepted merchant revenue, converts it to stablecoins, and distributes dividends to PST holders. Features:

• Automation: No manual intervention; payouts occur monthly via immutable code.

• Transparency: All transactions are logged on-chain for real-time auditing.

• Security: Funds are custodied in MPC wallets until distribution.

Tokenized Revenue Obligation (TRO)

A blockchain-based financial instrument that represents a claim on a predefined portion of a company's future revenue.

Tranche

Risk-tiered investment categories:

• Senior Tranche: Prioritized payouts (11-13% APY), backed by ALAR.

• Junior Tranche: Higher-risk, variable returns (up to 300% APY), eligible for governance rewards.

Yield Farm

A staking product offering tiered returns based on locked PST or LP tokens. Combines dividends, trading fees, and partner incentives to maximize yields.

Zero-Knowledge Proofs (ZKPs)

Cryptographic methods that enable data verification without revealing the underlying information. Used for privacy-preserving financial transactions.