Glossary

Terms are listed alphabetically. Each definition is one or two sentences; the link goes to the page where the term is explained.

A to C#

Advance. The USDC a seller receives at night, in the same transaction as the deposit: 90% of the reference value on a normal night. It is the first part of the sale price, not a loan. Selling

Advance rate. The share of the reference value that is advanced: 90%, or 75% on an earnings night.

Balance. The second payment, made at the open: the settled value, minus the fee, minus the advance. Never below zero. Settlement formula

Base. The layer-two network on Ethereum, built by Coinbase, where the tokenized stocks and EVE live.

Bell. The opening bell (9:30 AM New York time) or the closing bell (4:00 PM, or 1:00 PM on an early close). EVE starts buying at the closing bell and settles at the opening bell. Market hours

Buyback. Using part of the fees to buy $EVE on the open market. $EVE

Chainlink. The oracle network that publishes the stock prices EVE reads on-chain. Oracles

Close. The end of the NYSE core session. The price at that moment is the reference price for the night.

Corporate action. An event that changes a stock itself rather than its value: a split, a special dividend, a merger, a ticker change. The ticker is blocked while one is pending. Oracles

D to H#

Depositor. Someone who provides USDC to the pool and earns the fees sellers pay. Depositing

DEX depth. How much of a token a decentralized exchange can absorb near the current price. The nightly volume cap is a share of it.

Early close. A session that ends at 1:00 PM New York time instead of 4:00 PM. Market hours

Earnings night. A night during which the company reports results before the next open. The advance is reduced to 75%, or the ticker is blocked. Risk and safeguards

Fee. 0.25% of the settled value per calendar night, paid by the seller out of the balance. Fees

Fresh feed, fresh round. A Chainlink price written after the opening bell and younger than the staleness limit. Settlement only ever uses fresh rounds. Oracles

Frozen feed. A price feed that has stopped updating, because the market is closed or for another reason. It keeps returning its last price.

Gap. The difference between a stock's closing price and its next opening price.

Haircut. The part of the reference value that is not advanced: 10% by default. It is a cushion against the gap, not a fee, and is returned in the balance if the price holds. Risk and safeguards

Holiday. A weekday on which the NYSE does not open. Market hours

M to P#

Morpho. The lending protocol where the pool's idle USDC sits between sessions. Depositing

Night. The closed stretch between one session's close and the next session's open. A weeknight is one night; a weekend is three. Fees are counted in nights. Fees

Open. The start of the NYSE core session, 9:30 AM New York time. Settlement happens in the minutes after it.

Oracle. A service that brings a real-world price on-chain.

Oracle average. The first fresh Chainlink price after the open, averaged over 5 to 15 minutes. One of the two candidate settlement prices. Settlement formula

Pool. The vault of USDC provided by depositors. It pays advances at night and sells the stocks at the open.

Pool share. A depositor's claim on the pool. Its value rises as fees are added. Depositing

R to S#

Realized TWAP. The average price the pool actually obtains selling a stock over the first 30 minutes of the session: total USDC received divided by total shares sold. Settlement formula

Reference price. The last fresh Chainlink price before the close: the closing price. Used only to size the advance.

Reference value. Quantity multiplied by the reference price.

Reserve. A buffer funded by a share of every fee. It covers the pool's shortfall when a gap is larger than the haircut. Risk and safeguards

Session. One trading day on the NYSE, from the opening bell to the closing bell.

Settled value. Quantity multiplied by the settlement price.

Settlement. Fixing the final price of a sale at the open and paying the balance.

Settlement price. The lower of the oracle average and the realized TWAP.

Shortfall. The amount by which the pool's sale proceeds fall short of the advance it paid. It arises only when a gap exceeds the haircut, and is covered by the reserve first.

Simulation. What this site runs. Made-up prices, no transaction, no funds.

Staking. Locking $EVE to receive a share of protocol fees. $EVE

Staleness limit. The maximum age of a Chainlink round for it to count as fresh: 120 seconds todo.

Surplus. What the pool realizes above the settlement value, when the oracle average is the lower of the two prices. It goes to: reserve todo.

T to Z#

Tokenized stock. A token on a blockchain that represents a share of a listed company. Here: the tokens issued by Coinbase on Base for NVDA, AAPL, META and GOOGL.

TWAP. Time-weighted average price. Selling in equal slices over a period and averaging the result.

US person. A term of US securities law covering, broadly, US residents and entities. Tokenized stocks are not available to US persons. Legal

USDC. A US dollar stablecoin issued by Circle. Advances, balances and the pool are all in USDC.

Volume cap. The most EVE accepts per ticker per night: 5% todo of DEX depth. Risk and safeguards

Weekend. Friday's close to Monday's open: three nights, 0.75%.

Weeknight. One close to the next morning's open: one night, 0.25%.

$EVE. The protocol token. Part of the fees goes to its stakers and funds buybacks. $EVE