If you're new in the DeFi world or you're just someone curious about what it's about, I did this thread to educate you on some of the terms used by people.
DEFI TERMINOLOGIES
1. DEFI: An acronym for Decentralized Finance which means an ecosystem that operates independently, free
DEFI TERMINOLOGIES
1. DEFI: An acronym for Decentralized Finance which means an ecosystem that operates independently, free
from third parties in which other services are built on
2. BLOCKCHAIN: A Decentralized, distributed and most public digital ledger that records transactions in a way that makes it difficult or impossible to hack or change
3. SMART CONTRACT: A computer program intended to
2. BLOCKCHAIN: A Decentralized, distributed and most public digital ledger that records transactions in a way that makes it difficult or impossible to hack or change
3. SMART CONTRACT: A computer program intended to
automatically execute stored on a Blockchain that runs when predetermined conditions are met
4. TVL: An acronym for Total Value Locked which represents the total number of assets currently being staked in a Decentralized protocol
5. MARKET CAP: The total trading value of a
4. TVL: An acronym for Total Value Locked which represents the total number of assets currently being staked in a Decentralized protocol
5. MARKET CAP: The total trading value of a
cryptocurrency calculated by Current price multiplied by the circulating supply
6. FULLY DILUTED MARKET CAP: This is calculated by multiplying the current price of the asset by it's total supply
7. STABLE COIN: A cryptocurrency tied to the value of the US Dollar to make it less
6. FULLY DILUTED MARKET CAP: This is calculated by multiplying the current price of the asset by it's total supply
7. STABLE COIN: A cryptocurrency tied to the value of the US Dollar to make it less
volatile in carrying out DEFI transactions e.g BUSD, UST, USDT
8. WHITEPAPER: This is a document that contains the use of a cryptocurrency, it's tokenomics and how it intends to achieve all it's created for
9. TOKENOMICS: This describes the economics of a crypto token which
8. WHITEPAPER: This is a document that contains the use of a cryptocurrency, it's tokenomics and how it intends to achieve all it's created for
9. TOKENOMICS: This describes the economics of a crypto token which
includes it's quality, distribution and production
10. COIN: This is a crypto asset that is native to it's own Blockchain e.g ETH for Ethereum, BNB for Binance Smart Chain, AVAX for AVALANCHE
11. TOKEN: These are crypto assets created on existing Blockchains, they exist to be
10. COIN: This is a crypto asset that is native to it's own Blockchain e.g ETH for Ethereum, BNB for Binance Smart Chain, AVAX for AVALANCHE
11. TOKEN: These are crypto assets created on existing Blockchains, they exist to be
used in a Decentralized Exchange e.g $cake in Binance Smart Chain, $uni in Ethereum, $time in avalanche
12. IDO: An acronym for INITIAL DEX OFFERING, which refers to the launching of a crypto currency on a DEX inorder to raise funding from retail investors
12. IDO: An acronym for INITIAL DEX OFFERING, which refers to the launching of a crypto currency on a DEX inorder to raise funding from retail investors
13. IEO: INITIAL EXCHANGE OFFERING; this is similar to an IDO but it is done via a centralized Exchange
14. ICO: INITIAL COIN OFFERING; a crowdfunding technique that Blockchain projects use to raise Capital and create a new cryptocurrency
15. A fee for validating a transaction
14. ICO: INITIAL COIN OFFERING; a crowdfunding technique that Blockchain projects use to raise Capital and create a new cryptocurrency
15. A fee for validating a transaction
16. NFT: NON FUNGIBLE TOKEN; these are pieces of digital contents linked to the Blockchain that can neither be exchanged nor replaced by one another and they're associated with photos, videos, music, gifs and even games
17. CONTRACT ADDRESS: An address that provides the location
17. CONTRACT ADDRESS: An address that provides the location
of a particular token or coin and it is given when a contract is deployed on a Blockchain
18. ORACLES: Third-party services that provide smart Contracts with info from the outside world
19. AUDIT: This is an extensive examination and analysis of a smart Contract's code that is
18. ORACLES: Third-party services that provide smart Contracts with info from the outside world
19. AUDIT: This is an extensive examination and analysis of a smart Contract's code that is
used to interact with a cryptocurrency or Blockchain
20. LIQUIDITY: It is the ability of a coin to be easily converted into cash or other coins, it is referred to as money in plain language
PART 2 COMING UP!
20. LIQUIDITY: It is the ability of a coin to be easily converted into cash or other coins, it is referred to as money in plain language
PART 2 COMING UP!
Loading suggestions...