Glossary

This glossary provides definitions for key terms used throughout the STAB3L documentation. Understanding these terms will help you navigate the platform more effectively.

A

Arbitrage

A trading strategy that exploits price differences of the same asset in different markets. In STAB3L, arbitrage helps maintain the peg of sSTB to the value of 1 CU.

Arbitrage Efficiency (k)

A parameter in the peg stabilization equation that determines how quickly arbitrage opportunities are exploited. The default value is 0.15, with a governance-adjustable range of 0.1–0.5.

Arbitrum

A Layer 2 scaling solution for Ethereum that uses optimistic rollups to increase transaction throughput and reduce gas costs. STAB3L primarily operates on Arbitrum for its main contracts and marketplace.

Attestation

A cryptographic verification that proves the authenticity of a claim, such as the execution of a benchmark in a Trusted Execution Environment (TEE).

B

Benchmark

A standardized test used to evaluate the performance of compute resources. In STAB3L, benchmarks are used to standardize and verify compute units.

Bridge

A cross-chain protocol that enables the transfer of tokens between different blockchain networks. STAB3L's Cross-Chain Bridge allows users to move CU tokens between supported blockchains.

C

Circuit Breaker

A security mechanism that automatically pauses certain operations when predefined thresholds are exceeded. STAB3L implements circuit breakers for unusual trading volume, large bridge transfers, and rapid price fluctuations.

Collateral

Assets deposited by providers as security against the compute resources they offer. If a provider fails to fulfill redemption requests, their collateral may be used to compensate users.

Compute Unit (CU)

A standardized measure of computational power that includes processing power, memory, storage, network bandwidth, and duration of availability. In STAB3L, 1 CU is defined as 10^15 FLOPs (floating-point operations per second) and is valued at $0.06 at launch.

Cross-Chain

Referring to interactions or transfers between different blockchain networks. STAB3L's Cross-Chain Bridge enables the movement of CU tokens across multiple blockchains.

D

Decentralized Finance (DeFi)

A financial system built on blockchain technology that operates without centralized intermediaries. STAB3L integrates with various DeFi protocols to enhance liquidity and utility for CU tokens.

Derivative Market Efficiency (m)

A parameter in the peg stabilization equation that determines how effectively futures and options markets influence the spot price of sSTB. The default value is 0.1, with a governance-adjustable range of 0.05–0.2.

Dispute Resolution

A process for resolving conflicts between users and providers, such as when a provider fails to fulfill a redemption request. STAB3L's dispute resolution system includes collateral slashing and reputation impacts.

E

ERC-20

A token standard on Ethereum that defines a common list of rules for fungible tokens. The sSTB and rSTB tokens follow the ERC-20 standard.

ERC-1155

A token standard on Ethereum that supports both fungible and non-fungible tokens in a single contract. CU tokens in STAB3L are implemented as ERC-1155 tokens.

Ethereum

A decentralized, open-source blockchain platform that enables smart contract functionality. STAB3L operates primarily on Arbitrum, an Ethereum Layer 2 solution.

F

FLOPs (Floating-Point Operations Per Second)

A measure of computer performance. In STAB3L, 1 CU is defined as 10^15 FLOPs, benchmarked against high-performance instances like AWS p4d.24xlarge.

Futures Contract

An agreement to buy or sell an asset at a predetermined price at a specified time in the future. STAB3L's Futures Market allows trading of contracts for future delivery of compute resources via sSTB.

G

Gas

The fee required to perform a transaction or execute a contract on the Ethereum network. Gas fees are paid in the native cryptocurrency of the network (e.g., ETH on Ethereum).

Governance

The process by which decisions are made in a decentralized system. STAB3L's governance system allows rSTB token holders to vote on proposals that affect the platform.

Governance Response Factor (g)

A parameter in the peg stabilization equation that determines how strongly governance actions influence the peg stability. The default value is 0.2, with a governance-adjustable range of 0.1–0.5.

L

Liquidity

The ease with which an asset can be converted to cash or traded without affecting its market price. STAB3L implements various mechanisms to ensure liquidity for CU tokens.

Liquidity Mining

A process where users provide liquidity to a protocol and receive rewards in return. STAB3L offers liquidity mining programs to incentivize liquidity provision for CU tokens.

LogNormal Distribution

A probability distribution of a random variable whose logarithm follows a normal distribution. In STAB3L, the market price of 1 CU (P_CU) is modeled as a lognormal distribution with parameters μ = ln(0.06) and σ_CU ≈ 0.3.

M

Marketplace

A platform where buyers and sellers can trade assets. STAB3L's marketplace allows users to buy and sell CU tokens through spot, futures, and options markets.

Minting

The process of creating new tokens. In STAB3L, providers mint CU tokens after verifying their compute resources through ZKPs or TEEs.

Multi-Signature (Multi-Sig)

A security feature that requires multiple private keys to authorize a transaction. STAB3L uses a 7/11 multi-signature wallet for critical protocol parameters and contracts.

O

Options Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price. STAB3L's Options Market allows trading of call and put options for CU tokens.

P

Peg Stabilization Equation

The mathematical formula that ensures the stability of sSTB's value: P_sSTB = P_CU + Δ_arbitrage + Δ_derivatives + Δ_governance Where P_sSTB is the target price of sSTB, fixed at $0.06 (1 CU).

Provider

An entity that offers compute resources on the STAB3L platform. Providers verify their resources, mint CU tokens, and fulfill redemption requests.

Proof of Stake (PoS)

A consensus mechanism where validators are selected to create new blocks based on the number of tokens they hold and are willing to "stake" as collateral.

R

Redemption

The process of exchanging CU tokens for actual compute resources. When a user redeems CU tokens, the tokens are burned, and the provider is notified to fulfill the request.

Relayer

An entity that monitors events on one blockchain and submits proofs to another blockchain. In STAB3L's Cross-Chain Bridge, relayers facilitate the transfer of tokens between chains.

Reserve Ratio

The ratio of collateral value to the value of tokens in circulation. STAB3L maintains a minimum reserve ratio to ensure the stability of the system.

S

Smart Contract

Self-executing code deployed on a blockchain that automatically enforces the terms of an agreement. STAB3L uses smart contracts for tokenization, marketplace functionality, governance, and more.

sSTB Token (sSTB)

The main utility token of the STAB3L platform, pegged to 1 CU (valued at $0.06 at launch). sSTB is used for fee payments, staking, and liquidity provision.

Staking

The process of locking up tokens to support network operations and earn rewards. STAB3L offers staking programs for both sSTB and rSTB tokens.

STB Governance Token (rSTB)

The governance and rewards token of the STAB3L platform, used for voting on proposals and earning rewards. rSTB appreciates in value as the protocol grows.

Standardization Algorithm

An algorithm that normalizes benchmark results across different hardware configurations to ensure that CUs from different providers are comparable and interchangeable.

T

Timelock

A security feature that delays the execution of certain actions, giving users time to react. STAB3L implements timelocks for governance actions and bridge operations.

Token

A digital asset that represents a certain value or utility within a blockchain ecosystem. STAB3L has a dual-token system (sSTB and rSTB) plus CU tokens.

Trusted Execution Environment (TEE)

A secure area within a processor that ensures the confidentiality and integrity of code and data. STAB3L uses TEEs as one method for verifying compute resources.

V

Verification

The process of confirming the authenticity and performance of compute resources. STAB3L uses Zero-Knowledge Proofs (ZKPs) or Trusted Execution Environments (TEEs) for verification.

Volatility

The degree of variation in a trading price over time. STAB3L aims to reduce compute cost volatility from ±30% to <5%, creating a more predictable environment for AI development, blockchain operations, and scientific research.

Z

Zero-Knowledge Proof (ZKP)

A cryptographic method that allows one party to prove to another that a statement is true without revealing any additional information. STAB3L uses ZKPs as one method for verifying compute resources.

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{% hint style="info" %} This glossary is regularly updated as new terms are introduced to the STAB3L ecosystem. If you encounter a term that is not defined here, please contact us at support@stab3l.com. {% endhint %}