📖Glossary

Find protocol specific terms here:

Glossary

Components	Description
User	The public key (address) of non-whitelisted end-user.
Stablecoin (ST)	An ERC20 token that is pegged by its issuer to a FIAT currency unit. Examples include USDT, USDC, and DAI; which are all pegged against the U.S. Dollar or EURS & EURC which are pegged to the Euro.
flrEUR Token	The flrEUR Token is the base currency of the Florence protocol. flrEUR correspond in number to the principle amount of loans outstanding on the platform plus accrued interest. To engage with the protocol, users must convert/exchange stablecoins for flrEUR.
Florence Finance Medici token (FFM)	The Florence Finance Medici (FFM) token is the Florence protocol native governance & utility token. Users can earn FFM by staking flrEUR in the flrEUR Staking Pool.
Primary Funder	A Primary Funder is a whitelisted public key (address) of a person/entity that has gone through the KYC/AML onboarding process and is willing/able to fund open funding requests in size (>EUR 100k)
Loan Vault	A Loan Vault is the on-chain manifestation (ledger) of the lending activity undertaken by Florence Finance Europe. It creates Loan Vault Tokens (LVT) and flrEUR (equal in amount) upon funding of loans by Primary Funders and allows Primary Funders & Users to gain exposure to underlying loan assets sourced & administered by Florence Finance Europe by exchanging LVT's for flrEUR and visa versa. Different Loan Vaults represent different classes (risk / reward) of underlying loans.
Loan Vault Token (LVT)	Loan Vault Tokens (LVT) are receipt tokens for funding commitments made by Primary Funders and represent a stake in the underlying loan portfolio and accrued interest thereupon. LVTs are algorithmically tied to the principal amount and accrued interest of the underlying loan portfolio. Each Loan Vault issues its own uniquely named Loan Vault Token.
Florence Finance Europe (Delegate)	The Florence Finance Europe (Delegate) is the real-world entity that enters into loan agreements with SME lenders and funds such loans either with EURS directly to borrowers' crypto funding account or in FIAT via our own FIAT payment rails (after conversion).
CEX	Florence Finance Europe currently utilizes a centralized exchange “CEX” (Kraken) to convert Stable Coins into FIAT and vice versa. In the future use of EURS on the platform may make such conversion superfluous.
Bank	Florence Finance Europe relies on ClearJunction for FIAT payments. ClearJunction is an EMI license holder, a participating member of SEPA and is regulated and licensed by the FCA in the UK
SME Lending Companies	SME Lending companies are whitelisted borrowers that Florence Finance Europe lends funds to under the terms of loan agreements that it entered into with such entities, in order for them to be able to provide credit to SMEs
Florence Treasury	The Florence Treasury distributes loan repayments and interest on outstanding loan portfolios to LVT & flrEUR holders by adding flrEUR to Loan Vaults and buying back (and burning) flrEUR through the 3rd party liquidity pool [or directly from flrEUR holders].
3rd Party Liquidity Pool	The 3rd Party Liquidity Pool is any liquidity pool created on one or more DeFi / DEX platforms through which flrEUR can be exchanged for Stablecoins. The Pools are generally set so as to try to maintain parity between the Euro and flrEUR and liquid only to the extent there are willing buyers and sellers active in such Pool. Over time it is envisaged to allow the “peg” to float freely around parity but at the outset, we will try to maintain parity to the Euro.
flrEUR Staking Pool	flrEUR can be converted to LVTs to receive flrEUR interest (which can be converted back to Stable Coins) or they can be Staked in the flrEUR Staking Pool to receive FFM rewards. FFM tokens are the platform's native governance and utility token and will be issued at a premium to flrEUR interest percentages available on the platform.
Loan Vault Manager / Admin	[The pool manager allows the Florence Mediator to create new pools and issue or burn pool tokens based on the needs and cash flow of the SME lending companies.]
SME	An SME is a Small & Medium Enterprise
Loans Originated	Loans that have been written/facilitated through the Florence Finance platform.
Loans Outstanding	Loans outstanding refers to the amount still owed on existing loans.
TLO	“Total Loans Originated” - this is the total amount of loans that have been written/facilitated through the Florence Finance platform.
APR	“Annual Percentage Rate” - this is the interest rate that you can expect to earn over the period of a year.
Defaulted	Amount of loans where the borrower is unable to payback the principal, the loan will go into “default” and will enter a recovery process where funds will be attempted to be recovered.