> For the complete documentation index, see [llms.txt](https://mmfinance.gitbook.io/mm-etf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mmfinance.gitbook.io/mm-etf/ecosystem/glossary.md).

# Glossary

## APR

*Annual Percentage Rate*, is the annualized interest rate without taking the effect of compounding into account.

## APY

*Annual Percentage Yield*, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

## AUM

Assets under management (AUM) is the total market value of the assets that is managed on the METF platform.

## DAO

*Decentralized Autonomous Organization*, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. In **MM ETF** the governance token is **METF**, and we expect the voting page to be up as soon as possible, stay tuned!.

## Liquidity Bonds

*Liquidity bonds* are all the bonds that allows users to mint METF using LP token. An Example is METF-MMF LP bonds. 

## PCV

*Protocol Controlled Value*, is the amount of funds the protocol AUM owns and controls. The more PCV the better for the protocol and its users.

## POL

*Protocol Owned Liquidity*, is the amount of LP the protocol AUM owns and controls. The more POL the better for the protocol and its users.

## Reserve Bonds

Reserve bonds are all the bonds that allows users to MINT METF using single assets. They are sometimes referred to as "naked" bonds. Examples are **MMF** bonds.

## Backing per METF

*Backing per METF*, is the amount of funds the protocol AUM guarantees to use for backing **MMF**.

## LP

*Liquidity Provider token*, is the token received when providing liquidity on DEXs. For instance liquidity bonds will require require LP tokens of the METF-MMF pair from MM.Finance.

## TVL

*Total Value Locked*, is the dollar amount of all METF staked in the protocol. This metric is often used as growth or health indicator in DeFi projects.

## TWAP

*Time Weighted Average Price*, is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.