Glossary of Terms
Decentralized Finance, otherwise known as DeFi, aims to fundamentally replace modern-day banking with a superior model. This is largely made possible by utilizing the inherent strengths of public blockchains. As opposed to traditional banking, crypto is accessible globally, operates quickly and efficiently, and occurs directly between two parties without requiring centralized systems. Some of the current offerings include earning interest, borrowing, lending, and trading assets.
The initial groundwork for decentralized finance was laid back in 2009 with the creation of Bitcoin. Bitcoin aimed to remove the bureaucracy and time-gap between people and their money, often associated with banks, and replace them with a completely trustless system. Since 2009, DeFi has grown from concept, to niche market, to a widespread phenomenon. It has quickly become one of the fastest growing categories within crypto. Even as blockchains themselves became more popular worldwide, DeFi represented the creation of an entirely new market that is accessible to anyone, and with financial opportunities previously reserved for the upper echelon of society and wealth.
Thor Financial’s approach to DeFi is one of our differentiating characteristics; capable of assisting our long-term sustainability goals. We offer this approach as one of our multiple service offerings.
DeFi-as-a-Service, or DaaS, is a growing market segment within the DeFi sphere where an organization manages a treasury fund and subsequent investments on behalf of its community. While different protocols approach this differently, a majority of them issue returns from these investments in the form of regular rewards, usually in the respective native token. The inherent lack of a middleman, as defined previously in DeFi, makes this feasible by reducing expenses typically associated with Traditional Finance (TradFi). The removal of the middleman ensures much lower fees, and much higher returns on an investment. With the explosion of various offerings in the DeFi market, not every protocol is accessible to the average investor, whether this be due to sheer pricing mechanisms, complexity, or even just lack of awareness.
Because of these factors, Thor Financial proudly partakes in DaaS on behalf of its community. We utilize our DeFi Strategist’s expertise, our industry-leading community, and our community-funded treasury to accomplish these tasks.
Nodes are an absolutely critical component in a blockchain’s infrastructure. Nodes act as the blockchain’s servers, containing complete copies of the blockchain’s transactions, and constantly exchanging data amongst all of the other nodes to ensure the transactions match up. Nodes of this variety are usually hosted on physical devices requiring upkeep, such as laptops, PC’s, or even servers.
In short, here is what nodes do:
- Check if a block of transactions is valid, and accept or reject accordingly.
- Store blockchain transaction history.
- Update other nodes that require synchronization.
Owning and maintaining critical infrastructure hardware isn’t for everyone. To bridge that gap for people that lack the technical experience, time, and/or physical space to host physical nodes, Thor Financial offers Nodes-as-a-Service (NaaS). NaaS is a service whereby a community member can rely on Thor Financial to handle the technical side of creating and managing blockchain nodes for the community member. With every Thor DaaS/NaaS node created, corresponding custom Avalanche and Fantom remote procedure call (RPC) endpoint nodes are created. As a result, we are able to offer our community members custom RPC endpoints to facilitate faster, and cheaper transactions on the AVAX and FTM chains.Thor Financial also proudly hosts an AVAX validator node, as well as two FTM validator nodes. The validator nodes provide an additional revenue source for the protocol’s treasury.
NFTs or Non-Fungible Tokens are a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. In the simplest terms, NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.
P2E or “Play-To-Earn” is a form of video game business model. Other, more well-known, models include free-to-play games or pay-to-play games. Play-to-earn is another iteration of this model. With a P2E, players play the game in hopes of earning cryptocurrency. NFT Gaming has become an explosive trend with the “Play to earn” model.
Capsule - Capsules are the final result of the GameLoop process for ThorFi. Capsules come from the Fusion of matching (Origin Burn/Drift Burn) Thor & Odin Keycards. A capsule is immediately available in its closed form, at which point it may be listed on the Marketplace. You may then choose to open a capsule, at which point its contents are determined based on capsule type, and chance is applied by Chainlink VRF. You can also list the contents of the opened Capsule NFT on the marketplace.
DRR (Drift Reward Rate) - The locked-in 90-day reward rate based on the VRR at time of minting and the random boost multiplier.
Origin Burn - An Origin Burn is an action able to be taken in the Marketplace. This action takes your NFT and turns it directly into either an Odin Keycard NFT or a Thor Keycard NFT, dependent on the NFT type you burn.
VRR (Variable Return Rate) - The VRR is a constantly updating algorithm that will determine how NFTs, both Origin and Drift, will accumulate rewards. This formula considers a multitude of factors pulled from various key performance indicators (KPIs). Sources include TraderJoe, NFT Contracts, Rewards Pool, and the Marketplace.