Glossary

Value Separation Model

Creek's groundbreaking innovation that bifurcates gold's intrinsic value into two discrete, tradeable components: Stable Value (sValue) representing gold's fundamental stability, and Volatility Value (vValue) capturing market price movements and volatility exposure.

GSVM (Gold Stability Valuation Mechanism)

Creek's sophisticated pricing oracle that decomposes gold prices using a dual-EMA methodology, combining 120-day and 90-day exponential moving averages with current spot prices, featuring adaptive parameter calibration based on market volatility.

sValue (Stable Value)

The stable component of gold's value derived through GSVM's advanced algorithms, representing gold's fundamental stability through EMA calculations: sValue(t) = α × EMA120(t) + (1-α) × [β × EMA90(t) + (1-β) × SpotPrice(t)].

vValue (Volatility Value)

The volatile component of gold's value calculated as the differential between current market price and sValue: vValue = goldPrice - sValue, capturing price volatility exposure with precision-calibrated boundary conditions.

Insurance Fund

Protocol's financial backstop mechanism that receives 15% of daily protocol revenue, where CREEK stakers contribute to the fund while gaining voting rights, providing up to 20% loss coverage during extreme market events.

Liquidation Incentive Structure

Multi-tiered reward system for liquidators featuring a base 7% discount on collateral, with urgency bonuses of +1% for Health Factor <103% and +2% for Health Factor <101%, capped at 10% maximum combined incentive.

Volatility Regime Classification

Dynamic market condition assessment system classifying market states as Standard (σ within ±15% of 180-day average), Elevated (σ exceeding average by >15%), or Extreme (σ exceeding average by >40%), enabling automatic parameter recalibration.

Unified Distribution Model

Transparent revenue sharing framework allocating protocol revenue as: 35% to GR holders, 35% to GUSD LPs, 15% to Insurance Fund, and 15% to team multisig (immutable allocation).