The DeFi Dictionary

Anti-Money Laundering

Automated Market Maker

A protocol that uses algorithms to calculate asset values

Annual Percentage Rate

Annual Percentage Yield

Trading a crypto derivative, utilizing the price spread between different exchanges to earn profits

A comprehensive review of a company, product, system, process, or concept

Binance Smart Chain

A period in the market involving decrease in prices for a period of time, or even negative investor sentiment about an asset or class of assets

Bitcoin Maximalist

Bitcoin fanatics that believe Bitcoin is the one true cryptocurrency

The permanent public record of all transactions since the beginning of a cryptocurrency or token

A period in the market involving increase in prices for a period of time, or even positive investor sentiment about an asset or class of assets

Centralized Exchange

Centralized Finance

Represented by centralized businesses or organizations the involve a corporate structure.

A form of digital currency used for payments or storage of wealth

An assets (Crypto or Fiat) to be used for securing a loan

The ability of a certain product to be used as an element to the construction of other products

Interest gained is automatically re-invested with the original deposit and works towards your next gain cycle.

A form of digital currency using encryption and algorithms for added protection measures

A stablecoin pegged to the USD with no volatility

Decentralized Autonomous Organization

Decentralized Exchange

Decentralized Finance

An investment instrument that is based on an underlying asset

Technical standard used for Smart Contracts using the Ethereum Blockchain

Ethereum Tokens (Ether)

Digital assets built on the Ethereum Blockchain

A library for most dApps in the DeFi world and the first DeFi architecture

Block explorer for the Ethereum blockchain

Fear Of Missing Out

Fear Uncertainty and Doubt

Government issued currency that is not acked by a physical commodity

Borrowers can take out flat loans with no collateral, however it must be paid back within the same block

The ability to withdraw and swap your tokens without any fees

The inability to fulfill margin requirements on a leveraged position where the investor is forced to liquidate their assets

A way to incentivize users to perform certain actions

Rewards paid to POW miners, incentivizing them to support network transactions

The use and control of a Governance token

Token holders can vote on changes on the protocol

Unit of measurement of Gas Fees on the Ethereum Network

Hold On for Dear Life

Holding assets for a long period of time, or investing into cryptocurrencies for long-term storage

A person who HODLs

Initial Coin Offering

Price of your liquidity pool asset changes compared to the price when you first provided liquidity for that specific system

Large organization that makes substantial investments on an exchange

Know Your Client

Liquidity provider

Someone who provides cryptocurrency capital for a share of rewards gained

Using multipliers on exchanges/markets which greatly amplify gains, and potentially losses

Availability of the assets tokens/coins

A DEX feature that allows direct P2P trading.

Given to a depositor in exchange for the investor's deposit, typically used for yield farming

A decentralized ecosystem based on the Stablecoin called DAI

Market Capitalization

A measure of total funds invested in a company or project

Someone who provides trading services for traders to keep markets liquid

Web 3 browser wallet that holds your DeFi token

A pool of crypto miners providing mining services to a crypto network

Multiple Signature Wallet

A Crypto wallet that requires multiple signatories to agree and sign a transaction before the Smart Contract can be implemented

Non-Fungible Token

Used to buy and sell unique art collectibles

Transactions that occur off the Blockchain

Transactions that occur on the Ethereum Blockchain

A feed of data

Peer-to-peer

Pools of tokens available for trading between peers

A set of developed rules or specs

Inflating the price through mass buys into a specific crypto/token, then crashing the price by selling all at one

Return on Investment

The profits or losses of an investment made

An individual investor who buy, sells, or lends in the crypto space.

Difference between expected price and what you may have it for

A contract that can't be changed once launched, and decides how dApps and other protocols work

The difference in price between buy and sell offers of an asset

A token that reflects a fiat

Depositing crypto/tokens for the purpose of yield farming

Total Value Locked

The amount of money an ecosystem is holding inside of it

A process that permanently reduces the total supply of a token

the key functions and projections for a new token

Not a cryptocurrency, similar to company shares on a stock market

Fees that platforms charge to complete a trade

A transaction that can be validated without a central party

User Experience/User Interface

The speed of which prices change of an asset or market

People owning governance tokens can vote on issues that affect the protocol's future

A software or hardware crypto wallet that hold various coins

Someone who owns a large amount of crypto

The earnings that are generated from contributing an investment

Liquidity Mining

Depositing a token/crypto on a DEX or dApp for rewards

A tool that simplifies a user's entry/exit into Defi

Decentralized Applications