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

# Glossary

Quick reference to help you understand key concepts in fungi's world.

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### Core Concepts

**Fungi**\
I’m Fungi — your AI Agent for stablecoin yield maximization. I allocate your USDC across top-tier DeFi protocols to earn the best possible returns, fully onchain and without taking custody of your funds.

**Yield**\
The return or interest earned by lending or allocating USDC to DeFi protocols. My job is to maximize your yield while preserving self-custody and capital efficiency.

**APY (Annual Percentage Yield)**\
A measure of annualized returns including compounding. I use real-time APY data to compare strategies and make allocation decisions.

**USDC**\
A widely-used stablecoin pegged to the U.S. dollar. I currently operate exclusively with USDC on the Base network.

**DeFi (Decentralized Finance)**\
A blockchain-based financial system that removes intermediaries and it's open, programmable, and accessible to anyone. 

**DeFi Protocol**\
An application deployed onchain that enables lending, borrowing, or other financial activity. I currently support Aave, Morpho, Moonwell, and Fluid.

**Lending Protocol**\
A type of DeFi protocol where users earn yield by supplying assets (e.g. Aave, Moonwell, Morpho).

**Liquidity Pool**\
A collective reserve of tokens locked in a DeFi protocol to enable lending, borrowing, or trading.

**Non-Custodial**\
A system where you retain full control over your assets. I can only operate within the permissions you grant me — never beyond.

**Smart Contract**\
Self-executing code deployed on a blockchain. I use smart contracts to move funds, enforce boundaries, and operate autonomously.

**Smart Contract Account (SCA)**\
A programmable account deployed onchain and owned by you. It acts as the secure, onchain environment where I execute your strategy.

**Session Keys**\
Temporary cryptographic keys that let me act autonomously within a strict scope you define. I use them to rebalance your funds without ever accessing your private keys or wallet.

**Assets Under Management (AUM)**\
The total value of user deposits currently allocated and managed through me. You maintain full control at all times.\
\
**$Fungi**\
The native utility and governance token of the Fungi ecosystem. Deployed on Solana, with plans to go multichain. Token address:\
`3u4XvCjmTmQmcvjoxo1z8y3wnRdtnCuv6N9WkiE6FJvH`

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### How I Work

**Reallocation Cycle**\
I reassess all supported protocols every 24 hours (or more often, depending on your tier) to determine whether your yield can be improved. If so, I move your funds accordingly.

**Automation**\
Once you activate me, I handle all strategy execution — no need for manual approvals or monitoring. You stay in control; I stay optimized.

**Rebalancing**\
My process of reallocating capital from one protocol to another to improve yield or manage risk.

**Base (Network)**\
An Ethereum Layer 2 network developed by Coinbase. I operate on Base to minimize gas fees and maximize performance.

**Gas Sponsorship**\
All gas costs related to rebalancing are currently covered by me. You earn yield — I handle the execution.

**Average APY**\
Your personalized performance metric. It reflects the time-weighted average return across all your allocations, rebalances, and compounding.

**Execution Tiers**\
Your balance determines how often I scan and reallocate your capital. Higher balances unlock faster evaluations and better performance.

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### AI + Agent Concepts

**AI Agent**\
A goal-driven system designed to act autonomously. I’m an AI Agent designed to grow your stablecoins safely and intelligently.

**Fungi Studio**\
The proprietary development platform that created me. It enables the design, deployment, and evolution of advanced AI agents for DeFi.

**Personal Instance**\
Each user gets their own version of me. Your agent is private, personal, and tailored to your strategy and preferences.

**RAG (Retrieval-Augmented Generation)**\
I use RAG to enhance memory, allowing me to remember past interactions, decisions, and improve my answers over time.

**Chat with Fungi**\
You can talk to me directly via the in-app chat or on Telegram. I’ll answer your questions, explain your strategy, and help you understand your DeFi activity — anytime.