Word or Acronym
Annual Percentage Rate refers to the yearly interest generated by an amount that's charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual cost of funds over a year or income earned on an investment over a year. APR doesn't take into account compounding interests. Source.
Annual Percentage Yield is the actual rate of return earned on an investment, taking into account the effect of compounding interest. Source.
Dust is a trace amount of cryptocurrency left over after a trade or transaction. It has small or negligible monetary value (from a fraction of pennies to a few dollars) and is usually not enough to cover the cost of a transaction, meaning that what remains is "trapped".
Balance of a given user matched P2P.
Interest-bearing Token (ibToken)
Interest accumulating tokens that represent a share in a lending pool that grows in value as borrowers pay interest on them. ibTokens are used to keep track of the funds they have deposited as well as any interest earned.
Matching Engine
Morpho's algorithm that matches users P2P. See the dedicated section for more information.
Peer-Balance of a given user in the underlying pool.
Peer-to-Peer. Peer-to-Peer lending connects borrowers and lenders directly, bypassing third parties.
Annual Percentage Yield that borrowers and lenders get when matched P2P.
Peer-to-Pool. Lenders of a given asset are pooled together and their earnings, paid by borrowers, are shared prorata.
Protocol for Loanable Funds, aka Aave or Compound.
Pool APY
Annual Percentage Yield of the underlying pool.
In the case of lending, the spread is the difference between the lending APY (the % of compounded interests paid to lenders) and the borrowing APY (the % of compounded interests paid by borrowers).
Utilization rate
Percentage of funds supplied that is actually borrowed and thus generating interests. When fully matched P2P, the utilization rate is, by definition, 100%. When on the pool, the utilization rate of the sum of all funds is below 100% as there is always more liquidity available than borrowed.