> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usmewe.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Key terms and definitions

# Glossary

Key terms used throughout usmewe documentation.

## A-D

<AccordionGroup>
  <Accordion title="Account Abstraction">
    A blockchain architecture that makes smart contract wallets behave like regular accounts. In usmewe, this enables gasless transactions and social recovery. We use ZeroDev's Kernel implementation.
  </Accordion>

  <Accordion title="APY (Annual Percentage Yield)">
    The real rate of return on an investment, accounting for compound interest. Trust Vault stakers earn variable APY based on utilization.
  </Accordion>

  <Accordion title="BASE">
    An Ethereum Layer 2 blockchain developed by Coinbase. usmewe is deployed on BASE for fast, low-cost transactions.
  </Accordion>

  <Accordion title="Default">
    When a borrower fails to repay a loan within 7 days of the due date. Defaults result in Trust Score penalties and Insurance Pool claims.
  </Accordion>

  <Accordion title="Duress PIN">
    A secret alternative PIN that triggers fake transaction success while silently alerting Guardians. Used for protection against physical coercion.
  </Accordion>
</AccordionGroup>

## E-I

<AccordionGroup>
  <Accordion title="Exchange Rate">
    The conversion rate between tmUSDC and USDC. Starts at 1:1 and increases as yield accrues, meaning your tmUSDC becomes worth more USDC over time.
  </Accordion>

  <Accordion title="Guardian">
    A trusted contact who helps secure your account. Guardians boost your Trust Score and can approve Social Vault withdrawals.
  </Accordion>

  <Accordion title="Insurance Pool">
    A reserve fund that covers 80% of defaults. Funded by 10% of all interest payments.
  </Accordion>
</AccordionGroup>

## J-P

<AccordionGroup>
  <Accordion title="JWT (JSON Web Token)">
    A secure token format used for API authentication. Obtained through Supabase Auth after login.
  </Accordion>

  <Accordion title="Layer 2 (L2)">
    A blockchain that runs on top of Ethereum (Layer 1) for improved speed and lower costs. BASE is an L2.
  </Accordion>

  <Accordion title="Multi-sig">
    A security mechanism requiring multiple signatures (approvals) for an action. Social Vault uses 3-of-5 multi-sig for withdrawals.
  </Accordion>

  <Accordion title="P2P (Peer-to-Peer)">
    Direct transactions between users without intermediaries. P2P loans in usmewe are direct agreements between borrowers and lenders.
  </Accordion>
</AccordionGroup>

## Q-T

<AccordionGroup>
  <Accordion title="Smart Contract">
    Self-executing code on the blockchain that automatically enforces rules. usmewe's core logic runs on smart contracts.
  </Accordion>

  <Accordion title="Smart Wallet">
    A blockchain wallet controlled by a smart contract instead of a private key. Enables features like gasless transactions and social recovery.
  </Accordion>

  <Accordion title="Staking">
    Depositing assets into a protocol to earn rewards. In usmewe, staking USDC in the Trust Vault earns yield from borrower interest.
  </Accordion>

  <Accordion title="Timelock">
    A mandatory delay before an action completes. Social Vault withdrawals have 24-72 hour timelocks based on amount.
  </Accordion>

  <Accordion title="tmUSDC">
    Trust Mint USDC - the receipt token received when staking USDC in the Trust Vault. Represents your share of the pool plus accrued yield.
  </Accordion>

  <Accordion title="Trust Score">
    usmewe's algorithmic credit score (0-100) that determines borrowing power. Based on behavior, not collateral.
  </Accordion>

  <Accordion title="Trust Vault">
    The protocol's main liquidity pool where users stake USDC to earn yield and borrowers access credit.
  </Accordion>
</AccordionGroup>

## U-Z

<AccordionGroup>
  <Accordion title="USDC">
    USD Coin - a stablecoin pegged 1:1 to the US dollar. usmewe uses USDC as its primary currency.
  </Accordion>

  <Accordion title="Utilization Rate">
    The percentage of deposited funds currently being borrowed. Higher utilization = higher interest rates.
  </Accordion>

  <Accordion title="XP (Experience Points)">
    Points earned through platform activity. XP determines your level (Bronze to Diamond) which provides fee discounts and limit bonuses.
  </Accordion>

  <Accordion title="ZeroDev">
    A platform providing account abstraction infrastructure. usmewe uses ZeroDev's Kernel for smart wallet functionality.
  </Accordion>
</AccordionGroup>

## Need more help?

<Card title="FAQ" icon="circle-question" href="/resources/faq">
  Common questions and answers
</Card>