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Helva Docs

Glossary

Short, plain definitions of the terms used throughout these docs.

  • Anvil — the third-party, audited protocol on Ethereum mainnet that provides Helva’s self-custodial vaults and the Letter of Credit mechanism. See The Anvil protocol.
  • Beneficiary — the party named in a Letter of Credit that can request conversion of collateral under the contract’s conditions. In Helva, it is a contract operated by Helva (Anvil LOCBeneficiary). Redemptions can only go to Helva’s Safe, enforced by the contract. The credit asset is held for the lender. See Helva’s underlying entity.
  • cbBTC — Coinbase’s wrapped Bitcoin token; an accepted collateral asset.
  • Collateral — the crypto you lock to secure a loan (WETH, wstETH, WBTC, or cbBTC).
  • Credit asset — the stablecoin a Letter of Credit is denominated in. USD loans use USDT; CHF loans use EURC. See The FX buffer.
  • EURC — a euro stablecoin. CHF Letters of Credit are denominated in EURC.
  • EURe — a EUR stablecoin on Gnosis Chain; a settlement rail we’re working on.
  • FX buffer — extra EURC on a CHF Letter of Credit, sized by loan term, so the loan stays covered if the franc strengthens against the euro. See The FX buffer.
  • Gnosis Pay — a card that spends from a Gnosis Chain wallet.
  • Guarantee — the assurance issued to the lender by Helva, backed by a first-loss reserve plus its balance sheet (bounded).
  • KYC — “Know Your Customer”; the identity verification required before a loan goes live (Sumsub online ID, questionnaire, and video identification for borrowers).
  • Letter of Credit (LoC) — the on-chain reservation that ties your collateral to your loan without giving up the coins. See The Letter of Credit.
  • Liquidation — converting collateral to cover what’s owed when a position becomes unhealthy. Only the amount owed is converted; unused collateral returns in kind.
  • Liquidation threshold — the LTV level above which a position can be liquidated.
  • LTV (loan-to-value) — loan amount ÷ collateral value, as a percentage.
  • Margin call — a notification that your position is approaching the liquidation threshold and may need a top-up.
  • Non-custodial collateral management — the coins stay in your vault. Helva holds the conversion right for the lender.
  • Rollover — extending a loan. Not implemented yet; expected before the first loans mature.
  • Safe — a wallet that requires more than one approval before it can move funds or change policy. Helva’s admin Safe is 2-of-3. Helva’s redemption Safe is 2-of-2. See Operational security.
  • SRO (self-regulatory organisation) — a FINMA-recognised body. Helva’s underlying entity is a member. See the imprint.
  • USDT — a US-dollar stablecoin. USD Letters of Credit are denominated in USDT.
  • WBTC — wrapped Bitcoin; an accepted collateral asset.
  • WETH — wrapped Ether; an accepted collateral asset.
  • wstETH — wrapped staked ETH; the only accepted collateral that currently accrues yield while used as collateral.