Terminology

CosmFinance Terminology Reference

🌐 Core Tokens & Governance

  • CSM: The native algorithmic token of CosmBank; dynamically supplied and used across all modules.

  • veCSM: Vote-escrowed CSM; locked version of CSM used for governance and Flexi Loan collateral.

  • sCSM: Staked CSM token; received 1:1 upon staking, used to track and receive auto-compounded rewards.

🔗 Blockchain & Infrastructure

  • CosmChain: A sovereign EVM-compatible blockchain powered by PoL consensus, built for DeFi, RWA, and AI coordination.

  • PoL (Proof of Liquidity): A consensus model where validator weight is determined by LP activity, not just token stake.

  • IBC: Inter-Blockchain Communication protocol from Cosmos, used for seamless cross-chain messaging.

  • LRP (Liquidity Routing Protocol): CosmChain-native routing layer that finds optimal swap paths across DEXs and chains.

  • CosmWasm: Smart contract engine supporting Rust-based contracts; works alongside the EVM.

📊 Financial Mechanisms

  • DRB (Dynamic Reserve Balancing): Algorithm that optimizes liquidity depth and buffers price volatility.

  • Auto-Compounding: Rebase-based mechanism that increases sCSM balances periodically without manual claim.

  • LP Mining: Liquidity mining program rewarding CSM/USDT, CSM/BNB pool participants with high APYs.

  • CSD (Cosm Stable Dollar): An overcollateralized, RWA-backed stablecoin governed by CosmHub.

💰 Lending & Governance

  • Flexi Loan: A fixed-rate, term-based lending protocol using veCSM as collateral; non-liquidatable.

  • Cooler.sol: Per-user loan contract deployed by CoolerFactory for isolation and risk containment.

  • Governor Alpha: Core governance smart contract managing proposal creation and on-chain voting.

  • Multisig Wallet: 4-of-7 signer mechanism used for upgrade approvals and emergency actions.

  • Delegation: The right to assign voting power of veCSM to another address.

🔐 Security & Risk Management

  • Timelock: 48-hour delay before critical proposal execution to allow for community review.

  • Quorum: Minimum threshold of veCSM voting weight required for a proposal to be considered valid.

  • Emergency Patch: Multisig-triggered protocol intervention during vulnerabilities.

  • Security Reserve Fund: $100M treasury protection against contract risk and cross-chain bridge failures.

🧠 AI & Optimization

  • Federated Learning: Decentralized AI training preserving user data privacy.

  • Risk Profiling: AI-generated 128-dimension risk models to guide portfolio strategy.

  • Yield Optimization Engine: Multi-objective strategy optimizer balancing yield, risk, and gas efficiency.

🧭 Strategic Metrics & Phases

  • TVL: Total Value Locked, the key metric for unlocking roadmap milestones.

  • DAO Phases: The 3-stage governance maturity: Foundation-Guided → Community-Led → Fully DAO.

  • Roadmap Phases:

    • Phase 1: Liquidity Accumulation

    • Phase 2: CosmChain Development

    • Phase 3: Full Integration

    • Long-Term: DeFi Liquidity Hub

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