DeFi Glossary

Stablecoin

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its worth to a reserve of assets, such as fiat currencies like the U.S. dollar, commodities like gold, or a basket of assets. This stability allows stablecoins to be widely used for transactions, trading, and decentralized finance (DeFi) applications.

What is Stablecoin? Stablecoin Definition for Absolute Beginners

What is a stablecoin? It’s a cryptocurrency designed for price stability by tracking fiat or commodities. Discover use cases and stablecoin types that matter.

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A

B

C

D

E

F

G

H

I

J

Just-In-Time (JIT) Liquidity
Just-In-Time (JIT) Liquidity is a strategy employed in decentralized finance (DeFi) where liquidity providers (LPs) add liquidity to a pool immediately before a large trade executes and remove it shortly after. This approach aims to capture trading fees from significant transactions without exposing the LPs to prolonged market risks.

K

Know Your Customer (KYC)
Know Your Customer (KYC) is a regulatory process that financial institutions and certain other businesses use to verify the identity of their clients. This process ensures that institutions are not inadvertently facilitating money laundering, fraud, or other illicit activities.

L

M

N

O

P

Q

Quorum
A quorum is the minimum number of votes required for a governance decision to be valid in a Decentralized Autonomous Organization (DAO). If the quorum is not met, the proposal is considered void, regardless of the voting outcome.

R

S

T

U

Unstaking
Unstaking is the process of withdrawing staked cryptocurrency assets from a staking contract or protocol. It allows users to regain access to their funds, which were previously locked to earn staking rewards or support blockchain network security.

V

Validator
A validator is a node in a blockchain network responsible for verifying transactions, maintaining the integrity of the blockchain, and participating in the consensus mechanism. Validators play a critical role in Proof-of-Stake (PoS) and other consensus models by securing the network and ensuring that only legitimate transactions are recorded.

W

Y

Yield Aggregator
A Yield Aggregator is a decentralized finance (DeFi) protocol that automates the process of investing and managing cryptocurrency assets across various yield-generating platforms to optimize returns for users.

DeFi Glossary

Stablecoin

What is Stablecoin? Stablecoin Definition for Absolute Beginners

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10K Wallet

24-Word Seed Phrase

51% Attack

A

Airdrop

AML (Anti-Money Laundering)

AMM (Automated Market Maker)

APR (Annual Percentage Rate)

APY (Annual Percentage Yield)

Arbitrage

Assets Under Management (AUM)

Atomic Swap

B

BEP-20

Blockchain Oracles

Bonding Curve

Borrowing & Lending

Bridges

Burning (Token Burn)

C

CeFi (Centralized Finance)

CEX (Centralized Exchange)

Circuit Breaker

Collateralization Ratio

Commingling

Composability

Cross-Chain Swaps

Crypto Staking

D

DAO (Decentralized Autonomous Organization)

DApp (Decentralized Application)

DeFi

Degen

Derivative

DEX (Decentralized Exchange)

Dusting Attack

Dynamic Fees

E

ERC-20

ERC-721

Ethereum 2.0 (Eth2)

EVM (Ethereum Virtual Machine)

F

FaaS (Farming-as-a-Service)

Farming (Yield Farming)

Fiat On-Ramp

Flash Loan

Fork

Front-Running

G

Gas Fees

Gasless Transaction

Genesis Block

Governance Token

Gwei

H

Hard Cap

Hashrate

HODL

I

Impermanent Loss

Initial DEX Offering (IDO)

Interoperability

J

Just-In-Time (JIT) Liquidity

K

Know Your Customer (KYC)

L

Layer 0

Layer 1

Layer 2

Liquidation Threshold

Liquidity Pool

LP Token

M

Market Capitalization (Market Cap)