Glossary of
Terms
A definitive high-fidelity guide to the Lexicon digital liquidity ecosystem, compliance frameworks, and institutional ledger technologies.
Asset-Backed Token
A digital claim on a physical asset, such as real estate, fine art, or commodities. These tokens are linked to the underlying value of the asset and often represent fractional interest.
Atomic
Settlement
A mechanism ensuring that asset transfer occurs if and only if the payment is successful. Eliminates counterparty risk.
Burn Protocol
The permanent removal of tokens from the circulating supply, often to manage inflation or reflect asset liquidation.
Compliance
Engine
On-chain logic that enforces KYC/AML and jurisdictional rules in real-time before transactions execute.
Custodian
An institution that holds and secures digital assets on behalf of investors, providing bankruptcy remoteness.
Fractional Ownership
The division of a high-value asset into smaller digital parts, allowing retail and institutional investors to own a portion of an otherwise indivisible asset.
Fungibility
The property of an asset whose individual units are interchangeable and indistinguishable from each other.
Liquidity Pool
Crowdsourced pools of tokens locked in a smart contract used to facilitate trading between assets on a decentralized exchange.
Tokenization
The process of issuing a digital representation of an asset on a ledger, bridging physical value with digital liquidity.
T-Zero
The standard for instantaneous settlement where trade execution and asset transfer happen simultaneously, removing the T+2 delay.
