> For the complete documentation index, see [llms.txt](https://singulardao.gitbook.io/singular-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://singulardao.gitbook.io/singular-dao/extras/glossary.md).

# Glossary

## APY

Annual Percentage Yield, is the normalized representation of an interest rate, based on a compounding period over one year. Note that APYs provided are rather ballpark level indicators and not so much precise future results.

## APR

Annual Percentage Rate, is the annualized interest rate without taking the effect of compounding into account.

## DAO

A Decentralized Autonomous Organization is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token. Singular DAO's governance token will be $SD.

## RFV

Risk-Free Value is the amount of funds the treasury guarantees to use for backing $SD.

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