Accounts and balances
| Term | Definition |
|---|---|
| Lending account | A container that holds what you supplied and what you borrowed. It can hold several assets at once. One wallet can own more than one (accounts and risk). |
| Position NFT | The token that proves you own a lending account. The account id is the token id. Send the token and you send the whole position, debt included (position NFT). |
| Delegate | An address the owner lets act on their account. Only addresses governance has already approved can be made delegates (accounts and risk). |
| Scaled balance | Internal accounting that grows with interest indexes. Your live balance updates automatically (interest and revenue). |
| Supply index | Pool-level multiplier that turns scaled supply into the token amount you see (interest and revenue). |
| Borrow index | Pool-level multiplier that turns scaled debt into what you owe (interest and revenue). |
| Market | A listed asset on the shared pool with its own risk settings and price feed (markets). |
| Utilization | Share of supplied liquidity that is currently borrowed. Higher utilization generally means higher borrow rates (interest and revenue). |
| Reserve factor | Portion of borrow interest that goes to the protocol instead of suppliers (interest and revenue). |
Architecture
| Term | Definition |
|---|---|
| Liquidity pool | One shared contract that holds all listed assets and tracks pool-wide totals (markets). |
| Controller | The main contract that handles user actions, risk checks, and events (system architecture). |
| Governance | Admin contract that owns the controller and schedules protocol changes on a timelock (governance). |
| Timelock | Mandatory waiting period between scheduling and executing governance changes. Mainnet delay is roughly 48 hours (governance). |
| Accumulator | Address that receives protocol revenue from borrow fees (interest and revenue). |
Risk
| Term | Definition |
|---|---|
| Health factor | Collateral value (weighted for liquidation) divided by total debt. Below 1 means liquidatable (health factor). |
| LTV (loan-to-value) | How much you can borrow per unit of a collateral asset. The value is copied onto your position when you supply, so a later change does not re-price it (risk parameters). |
| Liquidation threshold | Collateral weight used in the health factor calculation. Always stricter than LTV (risk parameters). |
| Liquidation bonus | Extra collateral paid to liquidators above the debt they repay (liquidations). |
| Bad debt | Debt left after a liquidation that the remaining collateral cannot cover. The loss is written into that one market’s supply index, so only suppliers of that asset absorb it — not the whole pool (liquidations). |
| Spoke | The risk profile your account is bound to. It decides which assets you can use, at what LTV, and with what caps. You pick it when the account is created, and it never changes (spokes). |
| Hub | The isolation domain a market belongs to. The same token under two hubs is two separate markets with separate accounting (hubs). |
Oracles and safety
| Term | Definition |
|---|---|
| Price aggregator | Protocol-level price entrypoint. Governance configures PriceKey::Token(asset); every spoke uses that shared price path (oracles). |
| Fail-closed | When a price cannot be trusted, the action reverts instead of running on a doubtful number. This applies to every action that needs a price, with no lenient mode (oracles). |
| Reentry guard | Safety lock that blocks certain actions during flash loans, strategy swaps, and Blend migration (security model). |
Operations and integrations
| Term | Definition |
|---|---|
| Flash loan | A borrow that must be repaid, plus a fee, before the same transaction ends (flash loans). |
| Flash position | Different from a flash loan: it mints debt onto your account with no fee and no repayment. The debt stays. Your own contract decides what collateral comes back (flash loans). |
| Blend migration | One-step move from an approved Blend pool to a corresponding XOXNO position, subject to health checks (Blend migration). |
| Blend pool | A Blend V2 pool address approved by governance for migration (Blend migration). |
| DeFindex | Third-party vault protocol. A reference adapter maps vault deposits to XOXNO supply positions (DeFindex strategy). |
Technical scales
| Term | Definition |
|---|---|
| RAY | High-precision internal scale used for interest indexes and scaled balances (types). |
| WAD | Scale used for USD values and health factor (types). |
| BPS | Basis points. 10,000 BPS equals 100%, used for LTV, fees, and bonuses (risk parameters). |
Next
FAQ
Common questions about supply, borrow, and risk.
Overview
What the protocol does and how it is structured.
Health factor
How to read your number and keep a buffer.
XOXNO vs Blend
How XOXNO and Blend differ.