Category: Defi

Smart Contract
A smart contract is a self-executing agreement with terms written directly into blockchain-based code.
DeFi (Decentralized Finance)
DeFi, or Decentralized Finance, refers to blockchain-based financial applications that operate without banks or intermediaries.
Aave
Aave is a decentralized lending and borrowing protocol built on Ethereum and other blockchains.
Aave DAO
Aave DAO is the decentralized governance body that controls upgrades and decisions for the Aave protocol.
Algorithmic Stablecoin (Seigniorage model)
Algorithmic stablecoins use smart contracts and supply algorithms to maintain a stable value without collateral.
AMM Pool
An AMM pool is a smart contract-based liquidity pool that facilitates decentralized trading without traditional order books.
Atomic Swap
A smart contract technology enabling the exchange of cryptocurrencies from different blockchains without intermediaries.
ERC-4626
A tokenized vault standard for Ethereum that defines a uniform interface for yield-bearing tokens and DeFi vaults.
Frontrunning (Blockchain)
A malicious strategy where attackers exploit transaction ordering to gain unfair financial advantage.
Governance Token
A type of token that grants holders the right to vote on decisions affecting a blockchain protocol or DAO.
Automated Market Maker (AMM)
A decentralized exchange mechanism that uses mathematical formulas to price assets and facilitate trading without order books.
DAO Treasury
A collective fund controlled by DAO governance used to finance operations, grants, and development.
Aggregator (Data Aggregator)
A system or protocol that collects and consolidates data from multiple sources, often used in oracles and DeFi tools.
Anchor Protocol
A once-popular DeFi savings protocol on Terra that offered high-yield interest on stablecoin deposits.
API3
A decentralized oracle protocol that enables first-party APIs to feed data directly to smart contracts.
Arbitrage Bot
An automated trading script that exploits price discrepancies across exchanges or blockchains to generate profit.
Auction Mechanism
A process used in blockchains to allocate scarce resources like block space, validator slots, or token distribution.
Backrun
A type of MEV strategy where a bot places a transaction immediately after a known profitable one to capture residual gains.
Bonding Curve
A mathematical formula that defines token pricing based on supply, often used in DAOs, token sales, and DeFi markets.
Chainlink
A decentralized oracle network that connects smart contracts with real-world data and external APIs.
Collateral
Assets pledged as security for borrowing or minting in DeFi protocols, used to guarantee loan repayment or stability.
Collateralization Ratio
A metric that measures the value of collateral relative to the debt it secures, used to assess loan safety in DeFi.
Composable Finance
A design principle where DeFi protocols can interact and build on each other, enabling modular financial applications.
Decentralized Exchange (DEX)
A peer-to-peer platform that enables cryptocurrency trading directly between users without intermediaries.
Decentralized Finance (DeFi)
A financial ecosystem built on blockchain that offers services like lending, trading, and yield generation without intermediaries.
Derivative Token
A synthetic asset on blockchain that represents the value of an underlying asset, used in trading and DeFi strategies.
dYdX
A decentralized derivatives exchange offering perpetual contracts, margin trading, and advanced order types.
Escrow (Blockchain Escrow)
A trustless mechanism for holding and releasing assets based on predefined conditions in a smart contract.
Exit Fraud
A deceptive practice where a crypto platform or project disappears with user funds, typically after building trust.
Fractional NFT
A method of dividing ownership of a single NFT into multiple fungible parts, enabling shared ownership and liquidity.
Frontrunning
An exploit where a party preempts a pending blockchain transaction to profit by manipulating transaction ordering.
Governance Token
A cryptocurrency that gives holders voting rights in decentralized protocols, often used in DAOs and DeFi platforms.
HFT (High-Frequency Trading)
An algorithmic trading strategy that executes numerous trades in milliseconds, increasingly used in crypto markets.
Impermanent Loss
A temporary loss in value that occurs when providing liquidity to AMMs due to price divergence between assets.
Initial DEX Offering (IDO)
A fundraising model where new tokens are launched directly on decentralized exchanges to reach users without intermediaries.
Initial Coin Offering (ICO)
A fundraising mechanism where projects sell new tokens to early investors, typically before listing on exchanges.
IRDrop (Interest Rate Drop)
A situation in decentralized lending platforms where interest rates are reduced due to high liquidity or low borrowing demand.
Isolated Margin
A margin trading mode where each position is managed separately, limiting risk exposure to a specific trade.
Just-In-Time Liquidity (JIT Liquidity)
A DeFi strategy where liquidity is added moments before a trade and removed immediately after to capture fees or price impact.
Liquid Staking
A staking method that allows users to earn rewards while maintaining liquidity through tradable derivative tokens.
Liquidation
A process in lending protocols where collateral is sold when a borrower’s position becomes undercollateralized.
Liquidity Mining
A DeFi strategy where users earn tokens for supplying liquidity to decentralized exchanges or protocols.
Liquidity Pool
A smart contract-based reserve of token pairs used to facilitate decentralized trading without traditional order books.
Liquidity Provider (LP)
A user who supplies tokens to a liquidity pool in exchange for a share of trading fees and LP tokens.
LP Token
A token received by liquidity providers representing their share in a DeFi liquidity pool and used to claim rewards.
Maker (Order Book Context)
A trader who places a limit order that adds liquidity to the market, as opposed to a taker who removes it.
MakerDAO
A decentralized organization that governs the DAI stablecoin system using smart contracts and community governance.
Micropayment
A very small financial transaction, often enabled by blockchain to minimize fees and reach new economic models.
Order Book
A list of buy and sell orders organized by price level, used by exchanges to facilitate trading.
Regen Network
A blockchain platform focused on ecological data, carbon credits, and regenerative finance (ReFi).
Reversible ICO (rICO)
A fundraising model that allows investors to withdraw unallocated funds during a token sale for added protection.
Rug Pull
A type of crypto scam where developers withdraw liquidity or abandon a project after collecting user funds.
Scam Token
A fraudulent or deceptive cryptocurrency created to trick investors into losing funds.
Slippage
The difference between the expected and actual price of a trade due to market movement or liquidity constraints.
Stablecoin
A type of cryptocurrency pegged to a stable asset like the US dollar to reduce price volatility.
Staking Derivatives
Tradable tokens representing staked assets, allowing liquidity while still earning staking rewards.
Synthetic Asset
A tokenized representation of a real-world asset or derivative, tracked via smart contracts and collateral.
Tokenomics
The economic model and distribution logic governing a cryptocurrency token's supply, demand, and utility.
Total Value Locked (TVL)
A metric that measures the total amount of assets deposited in a DeFi protocol or ecosystem.
TVL Ratio (Market Cap to TVL)
A metric comparing a protocol's market capitalization to its total value locked, used to assess valuation.
Under-Collateralization
A lending condition where the collateral value is lower than the loan value, introducing higher risk.
Uniswap
A decentralized exchange protocol that allows users to trade tokens directly via automated market makers (AMMs).
Vampire Attack
A strategy where a new DeFi protocol incentivizes users to switch from an existing platform by offering rewards.