# Glossary

Source: https://o2ocapital.com/glossary
Updated: 2026-10-23

For information only: nothing on this site is an offer to sell, or a solicitation of an offer to buy, any security. Open to eligible non-U.S. institutional investors only.

As of 15 October 2026, O2O Capital Partners is pre-launch: no vault or vault token is live.

Definitions of the terms O2O Research uses across stablecoin treasury yield, niche private credit onchain and RWA vault research. Each term has a permanent link.

### [O2O](https://o2ocapital.com/glossary#o2o)

O2O stands for onchain to offchain (on-chain to off-chain): onchain capital to offchain yield. In O2O Capital Partners' name, it describes the route capital will take into offchain private credit.

## Stablecoin treasury yield

### [Base yield and incentive yield](https://o2ocapital.com/glossary#base-and-incentive-yield)

Base yield is the part of a vault's return paid by borrowers as interest; incentive yield is a reward paid on top, often in tokens and often with an end date.

**Figure: Base yield and incentive yield.** The headline yield includes a temporary reward. When the reward ends, only the base yield paid by borrowers remains. Illustrative.

Alt text: A chart of yield over time, illustrative with no numbers: a solid base-yield band runs the whole period; a hatched incentive-yield band is stacked on top of it between 'Reward starts' and 'Reward ends'; after the reward ends, the yield drops back to the base band alone.

### [Earn program](https://o2ocapital.com/glossary#earn-program)

An Earn program is a yield product inside an exchange, wallet, neobank or fintech app, often powered by an onchain vault behind the interface.

### [Fixed-rate onchain lending](https://o2ocapital.com/glossary#fixed-rate-onchain-lending)

Fixed-rate onchain lending is borrowing and lending onchain at a set rate until a set maturity; variable-rate markets instead reprice as utilization changes.

**Figure: Fixed-rate onchain lending.** A fixed rate holds until a set maturity; a variable rate reprices as utilization, the share of deposits currently borrowed, changes.

Alt text: Two small panels, each with rate on the vertical axis and time on the horizontal: a fixed rate drawn as a flat line from start to a set maturity, beside a variable rate drawn as a stepped line that reprices as utilization changes.

### [Looping](https://o2ocapital.com/glossary#looping)

Looping is borrowing against a yield-bearing token to buy more of the same token, repeated to raise both the position's yield and its risk.

**Figure: Looping.** Looping: a yield-bearing token backs a loan, the loan buys more of the same token, and the cycle repeats.

Alt text: A yield-bearing token is posted as collateral in a lending market, the loan buys more of the same token, and the cycle repeats, raising both yield and risk.

### [Non-crypto-correlated yield](https://o2ocapital.com/glossary#non-crypto-correlated-yield)

Non-crypto-correlated yield is a return whose source, such as invoice payments or lease rents, does not move with crypto prices or crypto borrowing demand.

**Figure: Non-crypto-correlated yield.** Yield from invoice payments or lease rents stays steady while yield tied to crypto prices and borrowing demand swings up and down. Illustrative shape with no data.

Alt text: A steady return from invoice payments or lease rents stays on its own path while crypto prices and borrowing demand swing.

### [Onchain allocator](https://o2ocapital.com/glossary#onchain-allocator)

An onchain allocator is an institution that holds capital onchain and allocates it to yield products, such as a DAO treasury, a vault curator or the Earn team at a fintech.

**Figure: Onchain allocator.** Institutions holding capital onchain, such as DAO treasuries, vault curators and fintech Earn teams, allocate it to yield products.

Alt text: Institutions that hold capital onchain, such as a DAO treasury, a vault curator or a fintech Earn team, allocate it to yield products.

### [SOFR](https://o2ocapital.com/glossary#sofr)

SOFR, the Secured Overnight Financing Rate, is a benchmark for overnight dollar borrowing secured by US Treasuries, published each business day by the Federal Reserve Bank of New York.

**Figure: SOFR.** SOFR measures overnight dollar borrowing secured by US Treasuries and is published each business day by the New York Fed.

Alt text: Overnight dollar borrowing secured by US Treasuries is measured by SOFR, which the New York Fed publishes each business day.

### [Stablecoin treasury](https://o2ocapital.com/glossary#stablecoin-treasury)

A stablecoin treasury is the stablecoin balance a DAO, protocol, company or fintech holds for operations and reserves, managed for safety, liquidity and yield.

**Figure: Stablecoin treasury.** A stablecoin balance held for operations and reserves, managed for safety, liquidity and yield.

Alt text: A DAO, protocol, company or fintech holds a stablecoin balance for operations and reserves, managed for safety, liquidity and yield.

### [Stablecoin yield](https://o2ocapital.com/glossary#stablecoin-yield)

Stablecoin yield is the return earned on stablecoins from lending, tokenized Treasuries, private credit or reward programs, usually quoted as an annual percentage yield (APY) after fees.

### [Tokenized Treasury fund](https://o2ocapital.com/glossary#tokenized-treasury-fund)

A tokenized Treasury fund is a fund holding short-term US government debt whose shares are issued as tokens and used onchain as a cash equivalent.

**Figure: Tokenized Treasury fund.** A fund holds short-term US government debt and issues its shares as tokens used onchain as a cash equivalent.

Alt text: Short-term US government debt is held by a fund whose shares are issued as tokens and used onchain as a cash equivalent, with the offchain to onchain seam marked.

## Niche private credit onchain

### [Aircraft lease financing](https://o2ocapital.com/glossary#aircraft-lease-financing)

Aircraft lease financing is funding aircraft that airlines lease, repaid from lease rents and secured by the aircraft themselves.

**Figure: Aircraft lease financing.** A lender funds aircraft that an airline leases; the lease rents repay the financing.

Alt text: A lender funds an aircraft that an airline leases; the lease rents repay the lender, and the aircraft secure the financing.

### [CIMA](https://o2ocapital.com/glossary#cima)

CIMA is the Cayman Islands Monetary Authority, the public body that registers and supervises investment funds and other financial services in the Cayman Islands.

### [Fund finance](https://o2ocapital.com/glossary#fund-finance)

Fund finance is lending to private equity and credit funds, such as subscription lines secured by investor commitments and NAV loans secured by fund assets.

**Figure: Fund finance.** Lending to private equity and credit funds, such as subscription lines and NAV loans.

Alt text: A lender lends to a private equity or credit fund, through subscription lines secured by investor commitments or NAV loans secured by fund assets.

### [Independent fund administrator](https://o2ocapital.com/glossary#independent-fund-administrator)

An independent fund administrator is a third party that keeps a fund's books, calculates its NAV and handles investor records, separate from the fund's manager.

**Figure: Independent fund administrator.** A third party, separate from the manager, keeps the books, calculates the NAV and handles investor records.

Alt text: A third party, separate from the fund manager, keeps the fund's books, calculates its NAV and handles investor records.

### [KYC allowlist](https://o2ocapital.com/glossary#kyc-allowlist)

A KYC allowlist is a list of identity-verified wallets that a vault checks before it allows deposits, transfers or redemptions.

**Figure: KYC allowlist.** A vault checks a list of identity-verified wallets before it allows deposits, transfers or redemptions.

Alt text: Deposit, transfer and redemption requests reach a vault, which checks a list of identity-verified wallets before allowing them.

### [Music royalty financing](https://o2ocapital.com/glossary#music-royalty-financing)

Music royalty financing is lending against, or buying, the future royalty income of music catalogs, repaid from streaming, performance and licensing income.

**Figure: Music royalty financing.** A lender lends against, or buys, a catalog's future royalty income, repaid from that income.

Alt text: A lender lends against, or buys, a music catalog's future royalty income, repaid from streaming, performance and licensing income.

### [NAV-priced vault token](https://o2ocapital.com/glossary#nav-priced-vault-token)

A NAV-priced vault token is a vault token whose price is the fund administrator's NAV per share, so holders subscribe and redeem at that NAV.

**Figure: NAV-priced vault token.** Holders subscribe and redeem at the NAV per share that the fund administrator calculates.

Alt text: Holders subscribe to and redeem a vault token at the NAV per share that the fund administrator calculates.

### [Net asset value (NAV)](https://o2ocapital.com/glossary#net-asset-value)

Net asset value (NAV) is a fund's assets minus its liabilities, usually stated per share and used to price subscriptions and redemptions.

**Figure: Net asset value (NAV).** Assets minus liabilities equals NAV, usually stated per share.

Alt text: Assets minus liabilities equals NAV, usually stated per share and used to price subscriptions and redemptions.

### [Niche private credit](https://o2ocapital.com/glossary#niche-private-credit)

Niche private credit covers specialized, smaller segments of private credit, such as trade receivables, royalties and aircraft leasing, often short-duration and self-liquidating.

### [Offchain yield](https://o2ocapital.com/glossary#offchain-yield)

Offchain yield is the return earned on assets held outside a blockchain, such as loans and receivables, and reported onchain through a fund's NAV.

**Figure: Offchain yield.** Assets held outside a blockchain earn a return that is reported onchain through the fund's NAV.

Alt text: Loans and receivables held outside a blockchain earn a return, which is reported onchain through the fund's NAV.

### [Originator](https://o2ocapital.com/glossary#originator)

An originator is the bank or specialist lender that sources, underwrites and services a loan, and that may later sell the loan, or a share of it, to investors.

**Figure: Originator.** The originator sources, underwrites and services a loan, and may later sell it or a share of it to investors.

Alt text: An originator, a specialist lender, sources, underwrites and services a loan, and may later sell the loan or a share of it to investors.

### [Private credit](https://o2ocapital.com/glossary#private-credit)

Private credit is lending by funds and other non-bank lenders directly to borrowers, arranged privately outside public bond and syndicated loan markets.

### [Qualified custodian](https://o2ocapital.com/glossary#qualified-custodian)

A qualified custodian is a bank, trust company or similar firm that meets legal standards for holding client assets, such as those in the SEC custody rule.

**Figure: Qualified custodian.** A firm that meets legal standards, such as the SEC custody rule, holds the client's assets.

Alt text: A qualified custodian holds client assets and meets legal standards for doing so, such as the SEC custody rule.

### [Segregated portfolio company (SPC)](https://o2ocapital.com/glossary#segregated-portfolio-company)

A segregated portfolio company (SPC) is a Cayman Islands company that can create segregated portfolios whose assets and liabilities are kept apart from one another by law.

### [Senior secured](https://o2ocapital.com/glossary#senior-secured)

Senior secured describes a loan with first claim on specific collateral, ranking ahead of other creditors on that collateral if the borrower defaults.

### [Tokenized private credit](https://o2ocapital.com/glossary#tokenized-private-credit)

Tokenized private credit is private credit exposure, such as a loan, a pool of loans or a credit fund share, issued or recorded as tokens on a blockchain.

### [Trade receivables financing](https://o2ocapital.com/glossary#trade-receivables-financing)

Trade receivables financing is advancing cash to a company against invoices its buyers owe, repaid when those buyers pay the invoices.

**Figure: Trade receivables financing.** A lender advances cash against invoices; the advance is repaid when the buyers pay.

Alt text: A lender advances cash to a company against the invoices its buyers owe; when the buyers pay the invoices, the advance is repaid.

## RWA vault research

### [DeFi composability](https://o2ocapital.com/glossary#defi-composability)

DeFi composability is the ability of a token to be used across other DeFi protocols, for example as collateral in a lending market or inside another vault.

**Figure: DeFi composability.** A token can be reused across DeFi, as collateral in a lending market or inside another vault.

Alt text: A token can be used across other DeFi protocols, for example as collateral in a lending market or inside another vault.

### [ERC-3643](https://o2ocapital.com/glossary#erc-3643)

ERC-3643 is a permissioned token standard in which tokens can move only between holders whose identities have been verified against the token's rules.

### [ERC-4626](https://o2ocapital.com/glossary#erc-4626)

ERC-4626 is the Ethereum tokenized vault standard, a common interface for deposits, withdrawals and share accounting that lets other applications integrate any compliant vault.

**Figure: ERC-4626.** One common interface for deposits, withdrawals and share accounting lets applications integrate any compliant vault.

Alt text: Other applications integrate any compliant vault through one common interface that covers deposits, withdrawals and share accounting.

### [ERC-7540](https://o2ocapital.com/glossary#erc-7540)

ERC-7540 is an extension of ERC-4626 for asynchronous deposits and redemptions, so requests can settle later, which suits vaults holding real-world assets.

**Figure: ERC-7540.** Requests settle later: a deposit or redemption is requested, waits to settle, then is claimed.

Alt text: An extension of ERC-4626 where a deposit or redemption is requested, settles later, and is then claimed.

### [ERC-7575](https://o2ocapital.com/glossary#erc-7575)

ERC-7575 is an Ethereum standard that lets one vault share token have several entry points, so a single vault can accept more than one asset.

**Figure: ERC-7575.** Several entry points lead to one vault share token, so a single vault can accept more than one asset.

Alt text: Several entry points, one for each asset, all lead into one vault share token, so a single vault can accept more than one asset.

### [LLTV](https://o2ocapital.com/glossary#lltv)

LLTV, or liquidation loan-to-value, is the debt-to-collateral ratio at which a loan in a lending market can be liquidated.

**Figure: LLTV.** LLTV is the debt-to-collateral ratio at which a loan can be liquidated. At 80%, $100 of collateral can back up to $80 of debt. Illustrative.

Alt text: Worked example: a full bar for $100 of collateral, and below it a debt bar filled to $80 with a marked line at an LLTV of 80%; debt past that line can be liquidated.

### [Onchain vault](https://o2ocapital.com/glossary#onchain-vault)

An onchain vault is a smart contract that pools deposits, issues shares and invests under set rules, paying out at share value on redemption.

**Figure: Onchain vault.** A smart contract pools deposits, issues shares, invests under set rules and pays out at share value.

Alt text: A smart contract pools deposits, issues shares and invests under set rules; on redemption it pays out at share value.

### [Oracle](https://o2ocapital.com/glossary#oracle)

An oracle is a service that posts outside data, such as prices, interest rates or a fund's NAV, onto a blockchain for smart contracts to use.

**Figure: Oracle.** An oracle posts outside data, such as prices, rates or a fund's NAV, onto a blockchain for smart contracts.

Alt text: An oracle posts outside data, such as prices, interest rates or a fund's NAV, from offchain onto a blockchain for smart contracts to use.

### [Real-world asset (RWA)](https://o2ocapital.com/glossary#real-world-asset)

A real-world asset (RWA) is an offchain asset, such as a loan, bond, fund share or commodity, represented by a token onchain.

**Figure: Real-world asset (RWA).** An offchain asset such as a loan, bond, fund share or commodity is represented by a token onchain.

Alt text: An offchain asset, such as a loan, bond, fund share or commodity, is represented by a token onchain.

### [TVL](https://o2ocapital.com/glossary#tvl)

TVL, or total value locked, is the value of assets deposited in a protocol or vault, the measure DeFi uses much as asset managers use AUM.

**Figure: TVL.** Total value locked is the value of assets deposited in a protocol or vault, DeFi's counterpart to AUM.

Alt text: Deposits stack up inside a protocol or vault; their combined value is total value locked, DeFi's version of assets under management.

### [Vault allocator and sentinel](https://o2ocapital.com/glossary#vault-allocator-and-sentinel)

A vault allocator moves money between a vault's approved markets within its caps; a sentinel is an emergency role that can only reduce a vault's risk.

**Figure: Vault allocator and sentinel.** The allocator moves money between approved markets within caps; the sentinel can only reduce risk.

Alt text: An allocator moves money between a vault's approved markets within its caps; a sentinel is an emergency role that can only reduce risk.

### [Vault curator](https://o2ocapital.com/glossary#vault-curator)

A vault curator is the firm that chooses which markets a vault may lend into, sets its limits and charges its fee, much like a portfolio manager.

**Figure: Vault curator.** The curator chooses the markets, sets the limits and charges the fee, much like a portfolio manager.

Alt text: A vault curator, much like a portfolio manager, chooses the markets, sets the limits and charges the fee.

Last updated October 23, 2026.