TVL
TVL means Total Value Locked. Mostly this locking means depositing in lending, staking and liquidity protocols. It is an often used metric to determine the …
Tradfi & Defi
Though DeFi is a giant step forward from TradFi, the underlying principles are the same or similar. Get schooled in finance!
Unit Bias
Unit bias is the fact that lower priced assets seem to be valued higher than an economically equivalent fraction of a higher priced one. For …
Uponly
Uponly is the motto of the bulls. It means that the general market or a specific token or stock will keep on rising, because reasons. …
Dutch Auction
A Dutch auction refers to a market structure where the asset price is determined after taking in all the bids and arriving at the highest …
Derivative
A derivative can be defined as a complex financial contract, the value of which depends on an underlying asset or a group of assets. The …
DeFi Insurance
DAO
A decentralized autonomous organization (DAO) is an organization that’s governed by automated smart contracts. This should ensure that there are no managers or bureaucracy involved …
Compounding
Compounding or compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. …
Composability Risk
Composability Risk is the (additional and often exponential) risk resulting in stacking DeFi protocols. DeFi apps are highly composable since they can work easily with …
Composability
CDP
A collateralized debt position or CDP is held by locking collateral in smart contracts to generate stablecoins. MakerDAO was the first project that introduced CDPs. …
Collateral
Collateral and collateralization is when a borrower pledges an asset as a means for the lender to recoup their capital in the instance that the …
TradFi
TradFi is short for Traditional Finance. This means banks, insurance companies, and other lenders and mortgage suppliers. These are normally very regulated, and any funds …
Censorship Resistance
Censorship resistance refers to the idea that no party can prevent anyone from participating in a given platform or network. Bitcoin was often used as …
Bonding Curve
A bonding curve is a mathematical equation used to create a relationship between the price and the circulating supply. The basis of the curve is …
ATL
ATL is short for all-time low. This usually refers to the value of a specific coin/token and a reference point relative to it, i.e. “Ethereum …
ATH
ATH is short for all-time high. This usually refers to: The value of a specific coin/token and a reference point relative to it, i.e. “Bitcoin …
Exit liquidity
This is normally you. Influencers are often helpful in making you exit liquidity. Whales have large bags of tokens they want to sell at some …
Catching a falling knife
Catching a falling knife means trying to BTFD, while the dip itself hasn’t finished yet, or might never finish and a token price keeps on …
Bagholders
Atomic swaps
Atomic swaps are automatic exchanges of cryptocurrency between two parties on two different blockchains without having to go through a centralized intermediary. The biggest advantage …
APY
The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding …
APR
The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers and paid to investors. APR is expressed as a …
Cartels
This 51% attack is an issue for consensus models. A few nodes from the entire network take care of the overall governance. These delegates could …
Yield Farming
Yield
The amount earned as a reward by depositing, or staking, an asset in a DeFi platform. See also: yield farming.
DEX
A peer-to-peer exchange that allows buyers and sellers to trade cryptocurrency directly with each other, without the need for an intermediary. This is the opposite …
Stablecoin
A type of crypto currency that’s value is tied, or pegged, to a real world currency. Commonly the U.S. Dollar.
CEX
Centralized exchanges (CEXs) are a type of cryptocurrency exchange that a company owns and operates in a centralized manner. Examples: Coinbase, Binance. Advantages of a …
Black Swan Event
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events …
Arbitrage
Arbitrage is the practice of quickly buying and selling the same asset in different markets to take advantage of price differences between these markets. So, …
DYOR
DYOR is an abbreviation for “Do Your Own Research”. This is a common tenet of the space. Proper research is encouraged before investing into projects.
Apeing
Apeing is when a cryptocurrency trader buys a large amount of a certain token, without conducting thorough research. This typically happens shortly after the token …