Key Definitions

Key terms used in this documentation

• Contributors: a collective term for protocol stakeholders: validators, miners, and tokenholders

• Claim Pool: where contributors claim $DAY from the current epoch's Network Engagement Rewards

• Claim window: The period of time a contributor can burn Sun Points to claim $DAY; lasts until the end of the following epoch

• Daylight Financial ("DayFi"): the onchain protocol that builds capital markets to scale distributed energy as an active resource for power grids.

• Daylight: the consumer energy platform brand that scales originations and energy assets on behalf of the DayFi protocol.

• Daylight App: Anode Labs' client for Daylight where users can interact with the protocol and manage rewards

• Energy audit: the collection of building-level energy equipment and efficiency data

• Energy device: any internet-connected energy device, including:

  • Batteries

  • Solar inverters

  • Smart thermostats

  • Electric vehicles / chargers

  • Electric hot water heaters

  • Generators

• Energy monitor: a device that streams real-time energy consumption data to the protocol

• GRID: a fully-backed $M stablecoin, which allows it to be redeemed instantly at all times. GRID does not pass yield through to holders, instead providing users with deep secondary market liquidity across DeFi and CeFi. GRID is primarily used as an on- and off- ramp to sGRID.

• Hosts: participants that host DayFi energy infrastructure on their home or building. They pay for produced electricity via a Daylight Energy Subscription.

• Network Engagement Rewards: used to incentivize the collection of unique, fragmented data that supports protocol value and utility (such as energy audits), active streaming of energy data from connected energy devices, successful and verified participation in grid support dispatches, referrals, and other engagement campaigns.

• Originators: entities that originate new projects on DayFi's network.

• Power Purchase Agreement: A Power Purchase Agreement (PPA) is a long-term contract between an energy producer and an energy buyer. In the context of distributed solar and storage systems, a PPA allows a homeowner or business to access clean energy without paying the full upfront cost of installing the system. Instead, the system is financed and owned by a third party, and the host agrees to purchase the electricity it produces at a fixed price over time.

• Proof of Flexibility: a novel mechanism to verify liveness and responsiveness of miners' connected energy devices

• Proof of Location: a mechanism to verify the location of a connected energy monitor

• Proof of Uniqueness: a mechanism to verify unique energy data streams from energy monitors

• sGRID: the yield-bearing token, backed by the revenues from the underlying distributed energy network. It is not a stablecoin.

• Total Return Swap: a contract between DayFi and its whitelisted sponsor AssetCos selling the economic benefit of the underlying energy assets to the protocol as yield, without the need for the protocol to hold and service the assets.

• Validators: a decentralized network running the Daylight Forecasting software packages, critical to Proof of Flexibility

• Virtual Power Plant: A networked system of distributed energy resources—like batteries, solar inverters, smart thermostats, and EV chargers—that are coordinated through software to act like a single, flexible power plant. While each device is physically located at the edge of the grid (often in individual homes or businesses), their energy capacity can be aggregated and controlled as one system to provide services to the broader power grid.