Glossary

ALVA The native ERC-20 utility token of the Alvara Protocol. Used for governance (via veALVA staking), BSKT fee reduction, and staking rewards.

AUM (Assets Under Management) The total value of assets managed by a specific manager across all their BSKTs.

BSKT (Basket Token) A tokenized investment portfolio built on the ERC-7621 standard. Each BSKT holds a collection of ERC-20 tokens in defined proportions.

BSKT Lab The interface for creating new BSKTs. A three-step process: Compose (select tokens), Design (name and brand), Fund (seed and deploy).

Epoch A recurring governance cycle (typically one week) during which veALVA holders cast gauge weight votes. At the end of each epoch, rewards are calculated and distributed.

ERC-7621 The Basket Token , an Ethereum Improvement Proposal defining how tokenized investment portfolios can be implemented as smart contracts.

Forever Lock A permanent ALVA staking option where tokens can never be withdrawn. Provides a 2.0x veALVA multiplier and 50% SRV rate. Effectively burns the locked ALVA.

Gauge Weight Voting The governance mechanism by which veALVA holders direct ALVA reward emissions to specific BSKTs each epoch.

LP Token (Liquidity Provider Token) A token representing proportional ownership of a BSKT's underlying assets. Received when depositing into a BSKT, redeemable for ETH or underlying tokens.

Manager The wallet address that created a BSKT. Has exclusive control over the basket's allocation (rebalancing) and earns management fees.

Management NFT An ERC-721 token representing management rights over a BSKT. Whoever holds this NFT controls the basket. Can be transferred or sold.

Merkle Proof A cryptographic proof used to verify eligibility for DAO reward claims without storing all claim data on-chain. Enables gas-efficient batch reward distribution.

MEV (Maximal Extractable Value) Profit extracted by reordering or inserting transactions within a block. Common MEV attacks include front-running and sandwich attacks. Alvara protects against MEV through its backend signing service.

Rebalancing The process by which a manager changes a BSKT's token allocation. Involves selling existing tokens and purchasing new ones according to updated weights.

SRV (Staking Rewards Vault) A percentage that determines a staker's share of the staking reward pool. Higher SRV rates are earned by longer lock periods.

Time Lock A temporary ALVA staking option where tokens are locked for a fixed period (1 week to 48 months). veALVA decays linearly until expiry, at which point the ALVA can be withdrawn.

TVL (Total Value Locked) The total USD value of all assets held within a BSKT or across the protocol.

veALVA (Vote-Escrowed ALVA) The non-transferable governance token received by locking ALVA. Used for gauge weight voting and qualifying for staking rewards. Amount determined by lock size and duration.

Xerberus Risk Rating A third-party credit-style risk rating system (AAA to D) that evaluates the risk profile of individual tokens within BSKTs.