> For the complete documentation index, see [llms.txt](https://docs.botanixlabs.com/bitcoin-yield/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.botanixlabs.com/bitcoin-yield/glossary.md).

# Glossary

## Glossary

<table><thead><tr><th width="190.4453125">Term</th><th>Definition</th></tr></thead><tbody><tr><td><strong>Bitcoin Yield</strong></td><td>A decentralized staking protocol that allows Bitcoin holders to earn passive income on their BTC holdings through the Botanix network.</td></tr><tr><td><strong>Botanix</strong></td><td>The Layer 2 solution for Bitcoin powered by Spiderchain technology that enables faster and cheaper transactions while maintaining security.</td></tr><tr><td><strong>BTC</strong></td><td>The native cryptocurrency of the Bitcoin blockchain and the asset being staked in the Bitcoin Yield protocol.</td></tr><tr><td><strong>Claim</strong></td><td>The second step in the withdrawal process where users receive their BTC after a withdrawal request has been processed.</td></tr><tr><td><strong>EIP-4626</strong></td><td>Ethereum Improvement Proposal that standardizes tokenized vault interfaces, which Bitcoin Yield implements for better DeFi compatibility.</td></tr><tr><td><strong>Exchange Rate</strong></td><td>The conversion rate between stBTC and BTC that reflects accumulated yield, calculated as (Total BTC in Protocol / Total stBTC Supply).</td></tr><tr><td><strong>Gas Fees</strong></td><td>Transaction fees paid by users on the Botanix network, 50% of which are distributed to stBTC holders as yield.</td></tr><tr><td><strong>Layer 2</strong></td><td>A secondary framework built on top of a blockchain (in this case, Bitcoin) that improves scalability and transaction speeds.</td></tr><tr><td><strong>Non-rebasing Token</strong></td><td>A token design where the token count remains fixed while the value of each token increases, as opposed to rebasing tokens where quantity changes.</td></tr><tr><td><strong>pBTC (pegged BTC)</strong></td><td>An intermediate token used in the Bitcoin Yield protocol that represents Bitcoin at a 1:1 ratio before being converted to stBTC.</td></tr><tr><td><strong>Proof-of-Stake (PoS)</strong></td><td>A consensus mechanism where validators are selected to create new blocks based on the amount of cryptocurrency they have staked.</td></tr><tr><td><strong>Request</strong></td><td>The first step in the withdrawal process where users initiate the conversion of their stBTC back to BTC.</td></tr><tr><td><strong>Slashing</strong></td><td>A penalty mechanism in proof-of-stake systems where validators lose a portion of their staked assets for malicious behavior or rule violations.</td></tr><tr><td><strong>Spiderchain</strong></td><td>The technology behind Botanix that implements a proof-of-stake Layer 2 solution for Bitcoin.</td></tr><tr><td><strong>stBTC</strong></td><td>A non-rebasing wrapped token representing staked Bitcoin in the Bitcoin Yield protocol that increases in value as yield accrues.</td></tr><tr><td><strong>Staking</strong></td><td>The process of depositing cryptocurrency (in this case, Bitcoin) to support a blockchain network's operations in exchange for rewards.</td></tr><tr><td><strong>Tokenized Vault</strong></td><td>A smart contract that accepts deposits of an asset and issues tokens representing a claim on those deposits plus any yield.</td></tr><tr><td><strong>Validator</strong></td><td>A participant in the proof-of-stake network responsible for validating transactions and creating new blocks.</td></tr><tr><td><strong>Yield</strong></td><td>The return earned on staked Bitcoin, generated from transaction fees on the Botanix network.</td></tr></tbody></table>