A coin / token created and destroyed as part of the system.


A contract for a “deposit account” that supports a few operations, e.g. “minting” (ie. borrowing) kit, or “burning” (ie. repaying) kit. A fresh burrow contract is created for every depositor, and only Checker is allowed to access it, so operations on burrows are performed via the Checker contract.

Circulating kits

The number of kits that exist. See also: outstanding kits.

Outstanding kits

The number of kits that it would take to close all currently open burrows. See also: circulating kits.

Liquidation lot

A batch of liquidation slices currently being auctionned of.

Liquidation slice

Some amount of tez, tied to a burrow, which is inserted in the liquidation queue to be auctionned of for kit

Liquidation queue

A dequeue implemented as a balanced binary tree representing an ordered list of liquidation slices. Slices at the front of the queue are periodically batched into a liquidation lot


The ratio of the number of circulating kits to the number of outstanding kits.

Imbalance adjustment

A compounding fee or reward applied to burrows which implicitly increases or decreases the number of outstanding kits over time to bring it closer to the number of circulating kits so as to bring the imbalance closer to 1.