# Glossary

## Glossary of Key Terms

> 📘 This glossary provides definitions for key concepts and technical terms used throughout the Quantillon Protocol documentation.

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### ACPR (Prudential Supervision and Resolution Authority)

The French authority responsible for prudential supervision and resolution, which engages in regulatory dialogue with Quantillon.

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### APY (Annual Percentage Yield)

The annualized percentage return, measuring the real yield earned on an investment over one year.

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### aQEURO / mQEURO / bQEURO / eQEURO

Variants of QEURO vaults, each representing different collateral strategies:

* **aQEURO**: Backed by USDC deposited on Aave.
* **mQEURO**: Backed by MakerDAO vaults.
* **bQEURO**: Backed by tokenized Treasury Bills (T-Bills).
* **eQEURO**: Based on synthetic yield models.

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### Cantillon Effect

An economic concept describing how monetary expansion initially benefits capital allocators closest to the money source, then gradually spreads, diluting value for others.\
Quantillon aims to **reverse** this effect to benefit European savers.

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### CASP (Crypto-Asset Service Providers)

Entities providing crypto-asset services, as defined in the **MiCA regulation**.

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### CeDeFi (Centralized Decentralized Finance)

A hybrid approach combining centralized and decentralized systems, often integrating DeFi technology into centralized frameworks.

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### Chainlink

A decentralized oracle network used by Quantillon to fetch secure, tamper-proof data (e.g. EUR/USD exchange rate), crucial for maintaining QEURO’s peg and triggering liquidations.

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### Overcollateralization

A system where the value of pledged collateral exceeds the value of the issued loan or stablecoin.\
**QEURO is overcollateralized by at least 101%.**

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### Composability

The ability of DeFi protocols to integrate and interact seamlessly, enabling the creation of complex and composable financial products.

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### DAO (Decentralized Autonomous Organization)

An organization governed by smart contracts on a blockchain, with no centralized control.\
Quantillon aims for **full DAO governance** over time.

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### DeFi (Decentralized Finance)

A financial ecosystem built on blockchain technology, operating without traditional intermediaries.

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### Delta-Neutral Hedging

A risk-mitigation strategy aiming to make a position **neutral to price changes** in the underlying asset (e.g., EUR/USD exposure in Quantillon).

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### EUR/USD

The Euro/US Dollar currency pair. A key factor in volatility and currency risk for European users exposed to USD-based DeFi.

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### Forex (Foreign Exchange Market)

The global market for currency trading. Quantillon leverages its depth and liquidity.

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### Hedgers

Participants who provide USDC to hedge against EUR/USD volatility, in exchange for compensation via the Yield Shift mechanism.

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### KPI (Key Performance Indicator)

Metrics used to assess the protocol’s growth and performance.\
Examples: **TVL**, **swap volume**, **user base**.

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### Liquidity by Design

Quantillon's strategy of leveraging **existing liquidity** (USDC and Forex) instead of building new liquidity from scratch—reducing costs and slippage.

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### Livret A

A low-yield regulated savings product in France, often cited as an example of how European capital is passively “parked”.

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### MiCA (Markets in Crypto-Assets Regulation)

The EU regulation establishing a legal framework for crypto-assets and their service providers.

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### Recital 22

A clause in MiCA that exempts protocols which are **fully decentralized** and **not controlled by a legal entity** from some regulatory obligations.

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### QEURO

Quantillon’s euro-pegged stablecoin, overcollateralized and backed primarily by USDC.

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### $QTI Token

Quantillon’s native governance token. Used for:

* Protocol governance
* Reward distribution
* Incentivizing participation

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### RWAs (Real World Assets)

Tokenized representations of real-world financial instruments (e.g., Treasury Bills), used as collateral in Quantillon vaults.

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### Stablecoin

A cryptocurrency pegged to a stable asset (like fiat or commodities), designed to reduce volatility.

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### TVL (Total Value Locked)

The total value of assets locked within the protocol.\
A key indicator of Quantillon’s adoption and capitalization.

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### USDC

A USD-pegged stablecoin used as **primary collateral** in the Quantillon Protocol.

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### Users

Participants who mint or stake QEURO to gain euro exposure and earn yield.

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### Vaults

Risk-segmented architecture modules where users deposit collateral across various DeFi backends (e.g., Aave, MakerDAO).

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### veQTI (Vote-Escrowed QTI)

A staking model where $QTI tokens are **locked** for a fixed time in exchange for:

* Increased voting power
* Long-term alignment incentives

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### Yield Shift

Quantillon’s unique mechanism for **dynamically redistributing yield** from collateral between Users and Hedgers to maintain the stablecoin’s peg.

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> 💡 Want to dive deeper into any of these terms? Use the GitBook search or navigate through the sidebar for more detailed sections.