Terminology

This section provides clear definitions of key terms used throughout the Wattlet documentation. Each term is explained in practical context, helping users and partners understand both its technical meaning and functional role within the Wattlet ecosystem.

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Wattlet The primary platform that enables users to hold, trade, and manage energy-denominated assets such as KWT and WATT. It functions as a digital energy wallet and marketplace for tokenized electricity.

WATT Token The utility and incentive token of the Wattlet ecosystem. WATT is used for staking, liquidity rewards, and ecosystem incentives. It also serves as a foundational asset for future governance participation.

KWT Token The Kilowatt Token (KWT) represents the value of one kilowatt-hour (kWh) of electricity in a specific country or region. Each KWT variant (e.g., KWTCN, KWTUK, KWTES) is pegged to verified local retail electricity prices.

AMM (Automated Market Maker) A decentralized exchange mechanism that enables automatic pricing and trading between tokens based on liquidity pool ratios, rather than order books.

Liquidity Pool (LP) A token reserve used for decentralized trading on Wattlet. Liquidity providers deposit assets such as USDT and KWT into pools to enable swaps and earn fees or WATT rewards.

Oracle Network A decentralized data network that delivers verified retail electricity prices and exchange rates from external sources to Wattlet’s blockchain layer.

Staking The process of locking WATT tokens to earn periodic rewards and support ecosystem stability. Staking participants may also gain enhanced privileges in future governance modules.

USDT (Tether) A stablecoin pegged to the U.S. dollar, used as a base currency for KWT trading pairs within Wattlet’s AMM pools.

Energy Value Representation The concept of expressing electricity as a tradable digital asset through KWT tokens, enabling transparent valuation and settlement across regions.

Oracle Price Feed The continuous stream of verified pricing data delivered from the Oracle Network to Wattlet smart contracts. Used to calculate KWT/USDT exchange ratios in real time.

Non-Custodial Wallet A wallet design where users retain full control of their private keys and assets without relying on centralized custody.

Liquidity Provider (LP Participant) A user or entity that supplies token pairs (e.g., USDT and KWT) to Wattlet’s AMM pool, enabling trading liquidity in exchange for rewards.

Retail Electricity Price The average unit cost of electricity charged to consumers in a specific region. KWT tokens track these values to represent real-world energy prices.

Ecosystem Incentives Rewards and benefit mechanisms distributed in WATT to encourage liquidity provision, trading participation, and long-term ecosystem contribution.