Application Framework
Glossary
Open Source Scythe Theory Core Terminology Quick Reference Manual
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| GLOSSARY |
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| Master these terms, master the game |
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+-----------------------------------------------------------+Basic Concepts
| Term | Definition |
|---|---|
| Ponzi/Scheme | Capital model using later entrants' funds to pay earlier entrants' returns |
| Three-Scheme Theory | Analytical framework categorizing all Ponzis into three basic models: Dividend, Mutual-Aid, and Split |
| Capital Mismatch | Inequality between inflows and outflows in time/amount, fundamental source of Ponzi profits |
| Collapse | State where capital mismatch becomes unsustainable, unable to honor redemptions |
Three-Scheme Models
| Term | Definition |
|---|---|
| Dividend Ponzi | Model with one-time capital investment, earning returns through linear dividends over time |
| Mutual-Aid Ponzi | Model profiting from capital lending through maturity mismatches |
| Split Ponzi | Model attracting subsequent capital inflows through asset multiplication |
Operational Terms
| Term | Definition |
|---|---|
| Reserves | Capital for honoring user withdrawals and interest payments |
| Distribution Ratio | Proportion of total deposits allocated to user returns |
| Rat Warehouse | Operator-controlled hidden accounts for early positioning and profits |
| Extraction | Collecting percentage fees during capital flows |
| Liquidation | One-time extraction of percentage from remaining capital when scheme ends |
Market Terms
| Term | Definition |
|---|---|
| Beta | Market-wide or similar project average yield/appreciation |
| Implied Beta | Market's psychological pricing of current situation, derived from comparing with other projects |
| Chip Structure | Distribution of tokens/assets among different holders |
| Liquidity | Possibility of extracting paper principal and profits from the scheme |
Cost Terms
| Term | Definition |
|---|---|
| Trust Cost | Costs paid to hook the audience (VC backing, contract audits, etc.) |
| Development Cost | Comprehensive production, iteration, and security costs for the scheme |
| Acquisition Cost | Traffic costs per unit of capital inflow |
| Market Making Cost | Costs from pumping to dump (chip acquisition, trading, manipulation) |
| Exit Cost | Costs paid to maximize market cap exit profits |
Industrialization Terms
| Term | Definition |
|---|---|
| Industrialization | Ability to continuously produce schemes at low cost, fast and efficiently in batches |
| Composability | Ability to nest new modules without affecting current operations |
| Migration | Traditional Ponzi operation of moving from one scheme to another |
| Cold Start | Process of acquiring first batch of users and liquidity in scheme's early stage |
Liquidity Terms
| Term | Definition |
|---|---|
| AMM | Automated Market Maker, providing deterministic liquidity through pool TVL |
| Order Book | Trading mode matching via buy/sell orders |
| LP | Liquidity Provider, person injecting capital into DEX pools |
| TVL | Total Value Locked, metric measuring protocol scale |
| Pool | Capital pool in DEX used for trading |
Launch Terms
| Term | Definition |
|---|---|
| Fair Launch | Launch method with no premine, no presale, equal opportunity for all to acquire tokens |
| Free Mint | Free minting, usually for NFT or token cold starts |
| Airdrop | Free distribution of tokens to specific user groups |
| IDO/IEO | Initial token offerings on DEX or CEX |
Strategy Terms
| Term | Definition |
|---|---|
| MEV | Maximal Extractable Value, profit opportunities through transaction ordering |
| Sniping | Strategy of buying first at token launch moment |
| Copy Trading | Strategy following other addresses' trading behavior |
| Backrun | Strategy executing related trades immediately after certain transactions |
On-Chain Scheme Terms
| Term | Definition |
|---|---|
| Bonding Curve | Curve mechanism automatically pricing based on supply |
| Mining Rig Scheme | Dividend Ponzi in the form of purchasing "mining rigs" for output |
| Memecoin | Low market cap, high-risk on-chain tokens |
| Rug Pull | Project team removing liquidity and running away |
Macro Terms
| Term | Definition |
|---|---|
| Positive Suspicion Chain | Self-reinforcing cycle formed through narratives and expectations |
| Reflexivity | Cycle where expectations influence reality, which then influences expectations |
| R Strategy | Fast batch trial-and-error, market-selected one wins |
| Mass Adoption | Large-scale user entry/adoption |
Common Abbreviations
| Abbreviation | Full Name | Meaning |
|---|---|---|
| APY | Annual Percentage Yield | Annualized yield rate |
| FDV | Fully Diluted Valuation | Fully diluted valuation |
| TVL | Total Value Locked | Total value locked |
| LSD | Liquid Staking Derivatives | Liquid staking derivatives |
| LRT | Liquid Restaking Token | Liquid restaking token |
| CEX | Centralized Exchange | Centralized exchange |
| DEX | Decentralized Exchange | Decentralized exchange |
| OTC | Over The Counter | Over-the-counter trading |
| KOL | Key Opinion Leader | Key opinion leader |
| CX | 传销 | Multi-level marketing |
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