# Terminology

### **Component**

| **Token**             | **Definition**                                                            | **Key Features**                                                                                                                  |
| --------------------- | ------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- |
| **XAUm**              | Physical gold-backed token serving as Creek Protocol's foundational asset | 1:1 backed by physical gold reserves, Primary asset for staking and redemption, Maintains direct gold price correlation           |
| **Gold Reserve (GR)** | Synthetic token representing gold's stable value component                | Minted at 1 XAUM = 100 GR ratio, Embodies EMA-derived baseline value (sValue), Primary collateral for GUSD with 85% initial ratio |
| **Gold Yield (GY)**   | Synthetic token capturing gold's volatility component                     | Generated at 1 XAUM = 100 GY ratio, Represents price differential from stable value, Features 10×-30× dynamic leverage mechanism  |
| **GUSD**              | Gold-backed USD-pegged stablecoin                                         | Maintains strict 1:1 USD parity, Collateralized by GR tokens at 85% ratio, Protocol's primary medium of exchange                  |
| **CREEK**             | Governance token for protocol administration                              | Enables proposal creation and voting, Required for Insurance Fund participation, Powers progressive decentralization roadmap      |

***

### **Terms**

| **Term**                                      | **Definition**                                                                | **Technical Specification**                                                                                                    |
| --------------------------------------------- | ----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ |
| **Value Separation Model**                    | Creek's innovation bifurcating gold value into stable and volatile components | Decomposes gold into sValue and vValue, Creates tradeable stability and volatility exposure, Enables precision risk management |
| **GSVM (Gold Stability Valuation Mechanism)** | Sophisticated pricing oracle decomposing gold prices                          | Dual-EMA methodology (120-day + 90-day), Adaptive parameter calibration, Real-time volatility adjustment                       |
| **sValue (Stable Value)**                     | Gold's fundamental stability component derived through GSVM                   | Formula: α × EMA120 + (1-α) × \[β × EMA90 + (1-β) × Spot], Represents intrinsic gold value, Basis for GR token pricing         |
| **vValue (Volatility Value)**                 | Gold's volatile component capturing market movements                          | Formula: goldPrice - sValue, Tracks price volatility exposure, Basis for GY token leverage                                     |
| **Insurance Fund**                            | Protocol's financial backstop mechanism                                       | Receives 15% of daily protocol revenue, CREEK stakers gain voting rights, Provides up to 20% loss coverage                     |
| **Liquidation Incentive Structure**           | Multi-tiered reward system for liquidators                                    | Base 7% discount on collateral, Urgency bonuses: +1% (HF <103%) +2% (HF <101%), Maximum 10% combined incentive                 |
| **Volatility Regime Classification**          | Dynamic market condition assessment system                                    | Standard: ±15% of 180-day average, Elevated: >15% deviation, Extreme: >40% deviation                                           |
| **Unified Distribution Model**                | Transparent revenue sharing framework                                         | 35% to GR holders 35% to GUSD LPs, 15% to Insurance Fund 15% to team, Immutable allocation structure                           |

***

### **Actions**

| **Action**          | **Definition**                                  | **Mechanism**                                                                                                                             |
| ------------------- | ----------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------- |
| **Stake**           | Primary method for Creek Protocol participation | Lock XAUM tokens in StakingPool contract, Instant minting of 100 GR + 100 GY, No lock-up period 0.001 XAUM minimum                        |
| **Redeem**          | Convert synthetic tokens back to XAUM           | Burn 100 GR + 100 GY = 1 XAUM, Must burn equal amounts, Supports partial redemption                                                       |
| **Borrow**          | Mint GUSD stablecoin against collateral         | Full-vault mode with multiple collateral types, Weighted average LTV calculation, Real-time health factor monitoring                      |
| **Repay**           | Repayment mechanism for borrowed GUSD           | Full or partial repayment options, Dynamic stability fees (3%-17% annually), Maintains vault health constraints                           |
| **Deposit**         | Add collateral to borrowing vault               | Supports multiple token types (GR SUI USDC), Real-time LTV recalculation, Increases borrowing capacity                                    |
| **Withdraw**        | Remove collateral from vault                    | Constrained by healthy LTV maintenance, Selective withdrawal by collateral type, Prevents liquidation-triggering over-withdrawal          |
| **Collect Rewards** | Claim protocol revenue distributions            | Internal rewards from protocol fees, External rewards from staking pools, Daily revenue distribution system                               |
| **Liquidation**     | Soft liquidation mechanism for risk management  | Triggered at Health Factor <1.00, Maximum 50% collateral per transaction, Base 7% discount + urgency bonuses                              |
| **Governance**      | Community-driven protocol parameter management  | Proposal creation requires 50,000 CREEK tokens, 2M token quorum (2% total supply) required, 2-day review + 5-day voting + 2-day execution |

***

### **Key Advantages**

**What Makes Creek Protocol Unique?**

* **Seamless Value Separation**: Automatically decomposes gold into stable and volatile components
* **Liquid Composability**: All tokens remain fully tradeable and composable across DeFi
* **Risk Precision**: Users gain granular control over stability vs volatility exposure
* **Capital Efficiency**: Optimized collateralization ratios maximize user capital utilization

**Backed by Real Gold Reserves**: All Creek Protocol tokens maintain transparent, auditable backing through physical gold custody and smart contract mechanisms.


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