Glossary

A reference list of core terms used throughout Sail, AI, and DeFi.

Agent An autonomous AI process that manages stablecoin allocation on behalf of a single user. Each agent operates within defined parameters, scanning markets and executing reallocations only when beneficial.

Agent Development Environment (ADE) The technical stack that powers Sail agents. Includes ERC-7702 smart accounts, session keys, reasoning modules, and isolated execution environments for safe strategy testing.

Annual Percentage Yield (APY) The standardized measure of return on an investment over a year, factoring in compound interest. In DeFi, APY reflects variable returns from interest, rewards, and fees.

Assets Under Management (AUM) The total value of assets actively managed by Sail agents on behalf of users. AUM is a key measure of product scale and adoption.

Balance Tiers Stratification of user deposits that tailors allocation strategies. Smaller balances prioritize gas efficiency and liquidity; larger balances unlock access to deeper venues and strategies.

DeFi (Decentralized Finance) A system of financial applications built on blockchains that operate without centralized intermediaries. Examples include decentralized exchanges, lending markets, and yield vaults.

Liquidity Pool A smart contract that holds tokens to facilitate trading, lending, or other DeFi functions. Users deposit assets into pools and earn fees or rewards.

Money in Motion Sail’s core principle: stablecoins are continuously optimized for yield and liquidity, rather than remaining idle or requiring manual management.

Protocol Risk The chance of financial loss due to vulnerabilities or failures in a DeFi protocol, such as smart contract exploits, governance attacks, or insolvency.

Risk-Adjusted Yield The return on a stablecoin position after factoring in protocol risk, liquidity risk, rewards, and fees. Sail agents prioritize this metric to guide allocations.

Self-Custody Ownership model where users retain control of their assets at all times. Sail never pools or takes custody of user funds; all reallocations occur directly from user-owned smart accounts.

Session Keys Temporary cryptographic keys that grant limited permissions for an agent to act on behalf of a user. They allow secure, bounded automation without handing over full account control.

Smart Accounts Programmable, user-owned accounts on Ethereum and compatible chains that support advanced execution. With ERC-7702, they enable Sail agents to perform swaps, bridges, and allocations directly from user custody.

Stablecoins Cryptocurrencies designed to maintain a stable value, usually pegged to the U.S. dollar. Examples include USDC, USDT, USDS, and USDe.

Total Value Locked (TVL) The total amount of assets deposited in a DeFi protocol or across the DeFi ecosystem. Used as a measure of adoption and liquidity.

Volume The total value of assets transacted within a defined period. In DeFi, volume is often measured across swaps, bridges, or protocol flows and reflects usage intensity.