Core Concepts
This document defines the core concepts and terminology used throughout the Noderr Protocol documentation.
Automated Trading Engine (ATE)
The Automated Trading Engine (ATE) is a sophisticated, off-chain system that allocates vault capital across a diverse portfolio of trading strategies to generate yield. The ATE is powered by a decentralized network of Oracle Nodes, which contribute the necessary computational resources for strategy generation, backtesting, and validation. Further details are available in the Autonomous Trading System section.
Self-Sovereign Architecture
Self-sovereign architecture is a design principle ensuring that all critical protocol infrastructure is powered by a decentralized network of community-operated nodes. This approach eliminates dependencies on centralized services and single points of failure, making the protocol highly resistant to censorship and operational failure. The Protocol Architecture section provides a more in-depth analysis.
TrustFingerprint
TrustFingerprint is a dynamic, on-chain reputation system that quantifies the reliability and contribution of each node operator. The score is calculated using a multifactorial formula that includes uptime, governance participation, economic stake, and technical performance. This score is then used to weight voting power and determine reward distribution. A detailed explanation is available in the TrustFingerprint Overview.
Two-Chamber Governance
The Noderr Protocol employs a bicameral governance system designed to balance broad, democratic participation with expert-led, strategic decision-making. It consists of two distinct chambers:
- Oracle Chamber: Composed of high-performance node operators who are responsible for strategic oversight and major protocol upgrades.
- Guardian Chamber: Composed of security-focused node operators who are responsible for technical security and risk management. The Guardian Chamber holds veto power over any proposal that could compromise the safety and integrity of the protocol.
More information can be found in the Governance Overview.
Automated Yield Vaults
Automated Yield Vaults are smart contracts that manage user deposits and execute trades based on instructions from the ATE. Each vault is optimized for a specific risk-return profile, allowing users to choose a strategy that matches their risk tolerance. The Vaults Overview provides additional details.
Real Yield
Real yield refers to sustainable yield generated from actual market-neutral trading strategies and protocol fees, as opposed to inflationary token rewards. All sources of yield are verifiable on-chain, providing full transparency and accountability.
Unbonding Period
The unbonding period is a 28-day waiting period required to withdraw staked NODR tokens or capital from vaults. This mechanism is designed to prevent liquidity crises during periods of market stress, protect against flash loan attacks, and stabilize protocol liquidity for long-term capital planning.
Node Tiers
The protocol utilizes a four-tier node network to maintain its decentralized infrastructure:
- Oracle Nodes: High-performance infrastructure running machine learning models for strategy generation.
- Guardian Nodes: Security-focused nodes that monitor smart contracts and coordinate emergency responses.
- Validator Nodes: Consensus participants that ensure network integrity and transaction finality.
- Micro Nodes: Lightweight mesh computing participants that enable broad network participation.
A comprehensive guide for Node Operators is available.