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ReferenceGlossary

Glossary

Alpha

An early version of software still being tested. ToneFinance alpha is on testnet with mock tokens—perfect for learning before mainnet launch.

Approval (Token Approval)

Permission you give to a smart contract to spend your tokens. First time you interact with a new token, MetaMask asks you to approve spending. You only need to do this once per token per app.

Basescan

The blockchain explorer for Base (like Google for the blockchain). You can search for transactions, contracts, and addresses at https://sepolia.basescan.org .

Basket

A collection of different tokens. The ToneFinance AI basket contains multiple AI-focused tokens distributed across your investment.

Block Explorer

A website that lets you view all blockchain transactions, addresses, and smart contracts. Like a transparent ledger anyone can read.

Burn

Destroying tokens permanently. When you withdraw from ToneFinance, your sector tokens are burned (sent to an address that can’t be accessed). You can’t get them back.

Chain ID

A unique number identifying a blockchain. Base Sepolia has Chain ID 84532. Used by MetaMask and apps to know which network you’re on.

Crypto / Cryptocurrency

Digital money that runs on a blockchain. Examples: Bitcoin, Ethereum, Fetch.ai, Bittensor.

Deposit

Sending USDC to the ToneFinance vault. In return, you receive sector tokens representing your share of the basket.

Diversification

Spreading your investment across many assets instead of just one. If one asset drops, others may go up, balancing your risk.

ETH / Ethereum

The native token of the Ethereum and Base blockchains. Used to pay gas fees (transaction costs). Not the same as USDC.

Faucet

A website that gives you free testnet tokens for testing. Examples: Base Sepolia faucet, Coinbase faucet.

Fulfillment / Fulfillment Engine

The off-chain service that processes your deposits and withdrawals. For deposits, it:

  1. Detects your pending deposit
  2. Acquires the underlying tokens from the market
  3. Deposits them into the vault
  4. Triggers minting of your sector tokens

This ensures 1:1 backing: every sector token is backed by real underlying assets. Takes about 10-20 seconds.

Gas

The cost to process a transaction on a blockchain. Paid in ETH. Higher network traffic = higher gas costs. Usually very small amounts.

Mainnet

The “main” production version of a blockchain with real money and real tokens. Base mainnet is separate from Base Sepolia testnet.

MetaMask

A digital wallet browser extension that lets you interact with blockchain apps. Stores your private key and signs transactions.

Mint

Creating new tokens. When you deposit into ToneFinance, new sector tokens are minted and sent to your wallet.

The total value of all tokens in a vault divided by the number of sector tokens. Used to calculate fair pricing for deposits/withdrawals.

Oracle

A service that provides real-world data to smart contracts. ToneFinance uses an oracle to get token prices. On testnet, it’s a mock oracle.

Proportional

Matching a share of something. If you own 50% of the vault, you get 50% of the underlying tokens when you withdraw.

RPC (Remote Procedure Call)

A connection to the blockchain. Your MetaMask uses an RPC endpoint to read blockchain data and send transactions. Example: https://sepolia.base.org .

Sector

A group of related assets. The AI sector includes tokens focused on artificial intelligence and machine learning (like Fetch.ai, Bittensor, etc.).

Sector Token

The token you receive from ToneFinance representing your share of the basket. On testnet, the address is 0xd596E4a4EcbB73601FAa875c3277Af9F6Cff6948.

Smart Contract

Code that runs on a blockchain. ToneFinance is a set of smart contracts that handle deposits, withdrawals, and pricing.

Stablecoin

A cryptocurrency designed to stay at a fixed price. USDC is a stablecoin worth $1. Useful for stable deposits and withdrawals.

Testnet

A “test” version of a blockchain for developers and users to test features without real money. Base Sepolia is a testnet.

Transaction

An action on the blockchain (like sending tokens or calling a smart contract). Each transaction costs gas and is permanently recorded.

USDC

A stablecoin (always $1) issued by Circle. On ToneFinance, you deposit USDC to mint sector tokens.

Underlying Tokens

The actual tokens inside your sector basket. When you withdraw, you get these back (or choose USDC on mainnet).

Vault

A smart contract that holds tokens and manages deposits/withdrawals. The ToneFinance vault holds USDC from users and the underlying AI tokens.

Wallet

A digital account on the blockchain. Stores your tokens and private key. MetaMask is a wallet.

Withdraw

Burning your sector tokens to get the underlying tokens back. The vault calculates your proportional share based on current prices.

Quick Reference by Task

Getting Started

Depositing

Your Basket

Withdrawing

Blockchain Basics

Tools & References

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Smart Contract AddressesUse ToneFinance with Base App