Glossary
Key terms for using Floe.
APR
Annual Percentage Rate — the yearly interest rate on a loan. 5% APR means you pay/earn 5% per year.
Collateral
The asset you deposit to secure a loan. For the USDC/USDC market, your collateral is USDC itself (same-token, 95% LTV). For volatile markets, WETH or cbBTC (70% LTV). If you can't repay, collateral may be liquidated.
Intent
A signed message stating your lending or borrowing terms. Gets matched with a compatible counterparty.
Lender
Someone who provides USDC to earn interest.
Borrower
Someone who deposits collateral to borrow USDC.
LTV (Loan-to-Value)
How much you've borrowed vs your collateral value:
Higher LTV = higher risk of liquidation.
Liquidation
When your LTV exceeds the maximum allowed, anyone can repay your loan and take your collateral (plus a 5% bonus).
Liquidation LTV
The LTV threshold where you can be liquidated. Set by the lender (typically 75-80%).
Matcher
A bot that finds compatible lend and borrow intents and creates loans. Earns a small commission.
Oracle
Price feed that tells the protocol asset values. For volatile markets (WETH, cbBTC), Floe uses Chainlink (primary) and Pyth (fallback). For same-token markets (USDC/USDC), the oracle returns a hardcoded 1:1 ratio — no external feed dependency.
Circuit Breaker
Safety mechanism that pauses the protocol if prices are stale or invalid.
Lendr
Floe's AI assistant. Chat with it for help creating intents or understanding your loans.
Market
A loan/collateral token pair. Active markets: USDC/USDC (secured working capital, 95% LTV), USDC/WETH, USDC/cbBTC, USDT/WETH, USDT/cbBTC.
Same-Token Market
A market where the loan and collateral are the same asset (e.g., USDC/USDC). The oracle returns a fixed 1:1 ratio, there is no price-volatility liquidation risk, and LTV can reach 99.5%. Designed for secured working capital lines.
Fiat On-Ramp
The ability to buy USDC from the Developer Dashboard using a credit card, debit card, or bank transfer via Coinbase CDP. Funds land directly in your agent's wallet on Base.
Partial Fill
When an intent is matched for less than its full amount. If allowPartialFill is enabled, a single intent can be matched multiple times by different counterparties until fully filled.
Bad Debt
When a loan's collateral value falls below the outstanding debt. The lender absorbs the loss in this scenario.
Underwater Loan
A loan where collateral value is less than the debt owed. Underwater loans must be fully liquidated and result in bad debt for the lender.
Hook
A smart contract callback executed before or after a lending operation. Hooks enable extensibility for custom logic like automated collateral management.
Condition
A requirement that must be satisfied for a lending operation to proceed. Conditions are checked on-chain as part of hook execution.
Flash Loan
A loan that is borrowed and repaid within the same transaction. Flash loans require no collateral but must be repaid atomically.
Health Factor
A measure of how close a loan is to liquidation. Derived from the ratio of current LTV to liquidation LTV — the higher the buffer, the healthier the position.
Slippage Protection
The maxTotalRepayment parameter that caps how much a liquidator or repayer pays, preventing sandwich attacks or unexpected price movements from increasing costs.
EIP-712
An Ethereum standard for typed structured data hashing and signing. Floe uses EIP-712 for off-chain intent signatures, providing human-readable signing prompts in wallets.
ERC-1271
A standard for smart contract signature validation. Allows smart contract wallets (like Safe multisigs) to sign and create intents on Floe.
ERC-4626
A tokenized vault standard. Floe supports ERC-4626 vault wrappers that allow lending positions to be represented as yield-bearing vault shares.
UUPS
Universal Upgradeable Proxy Standard — the upgrade pattern used by Floe's smart contracts. Allows the protocol to deploy security patches and new features while preserving existing state.
Sequencer
The L2 (Base) transaction ordering service. Floe's circuit breaker checks sequencer liveness to prevent operations during L2 downtime.
Domain Separator
An EIP-712 value that binds signatures to a specific contract on a specific chain, preventing cross-chain and cross-contract replay attacks.
AgentKit
Coinbase's open-source framework that gives AI agents on-chain capabilities. Floe's floe-agent package provides 45 actions (30 lending + 6 x402 credit-delegation + 9 agent-awareness) as an AgentKit ActionProvider, compatible with Vercel AI SDK, LangChain, and MCP.
Working Capital
USDC borrowed against a USDC deposit via the USDC/USDC market. At 95% LTV, a $10,000 deposit yields $9,500 in spendable working capital. No price risk, no crypto complexity.
Credit Score
An on-chain creditworthiness score computed by Cred Protocol based on DeFi lending/borrowing history. Displayed as a radar chart on the Floe dashboard and as tier badges in the loan book. Informational only — does not gate access.
Grace Period
A configurable window of time after a loan's expiry date during which the borrower can still repay without being liquidated. Once the grace period ends, the loan becomes eligible for liquidation.
Minimum Interest
A floor on the total interest earned by a lender on any loan. Ensures that short-duration or small-principal loans are still economically worthwhile.
Safe (Gnosis Safe)
A multi-signature smart contract wallet. Floe supports Safe natively — Safe wallets are detected automatically, forced to on-chain transaction mode, and shown Safe-aware messaging for co-signer confirmation.
Flash Arbitrage
A strategy that uses a flash loan to exploit price differences between Floe and external DEXs (like Aerodrome) within a single atomic transaction. Executed via a deployed FlashArbReceiver contract.
Duration Range
An intent parameter specifying minimum and maximum acceptable loan durations instead of a single fixed value. Increases matching flexibility by allowing the matcher to select any duration within the overlapping range of a lend/borrow pair.
ACP — Agent Commerce Protocol
Onchain protocol for agents to transact with each other and with services. Source of deterministic agent revenue Floe can underwrite against.
ACP — Agent Commerce Protocol
Onchain protocol for agents to transact with each other and with services.
Facilitator (x402 Facilitator)
A service that processes x402 payments on behalf of agents. Floe's facilitator borrows USDC via operator delegation and signs EIP-3009 authorizations — agents never handle payments directly.
LP (Liquidity Provider)
A participant providing capital by posting lend intents on Floe.
Origination
The act of creating a new loan at intent match time.
Solver (Matcher)
Permissionless off-chain bot that matches compatible lend + borrow intents and submits the match transaction onchain. Earns matcher commission.
x402
Open standard for HTTP-native USDC payments. Floe's facilitator handles x402 payment mechanics on behalf of agents.
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