Dernière modification le 01/07/2022 à 15:29 par Back Office Update - test
by Erwan COATNOAN DE KERDU
Intangible Capital Value
Crypto Glossary
Aggregator
An interface that, through special software, collects content from various sources, making it easier to consult.
In the crypto context, it indicates a service that aggregates multiple service providers into a single interface. For example, Yearn Finance is an aggregator of decentralized lending services.
APR
APR stands for Annual Percentage Rate and indicates the percentage of interest that will be earned in one year, regardless of compound interest.
APR is used in the DeFi aggregator and in particular in the yield farming functions and in the incentive programs linked to the provision of liquidity.
APY
Annualized Percentage Yield (APY) is the actual rate of return on an investment over a year.
APY is referred to not only in the investment field, but also in DeFi and especially in yield farming functions and in incentive programs related to liquidity provision.
Arbitration
Make a series of quick purchases and/or sales, usually for a large amount, in different markets with the aim of making a profit. For example, a trader may buy at a lower price on one exchange and immediately resell at a higher price on another exchange.
Bonding
Bonding is a process similar to staking used by Proof-of-Stake networks. Like staking, it involves the blocking of cryptos as collateral by network participants to participate in certain activities. In the Polkadot network, for example, parachains who want to connect to the Relay Chain must pledge a set amount of DOT. In the Terra ecosystem, having LUNA in bonding allows for the validation of transitions and voting decisions on blockchain governance. In bonding, locked cryptos function as a security deposit, the moment they are unlocked, the rights attached to them are lost.
CeFi
Centralized finance is the set of structured and specialized financial services that allow you to trade crypto-currencies and related assets, get loans or earn interest on your crypto-currencies by lending them, via a centralized exchange. CeFi aims to make cryptocurrency-based financial services accessible to all and to intensify the processing of transactions.
Challenge
DeFi stands for Decentralized Finance and is the set of decentralized financial solutions and services based on blockchain and derivative technologies such as smart contracts and Dapps. DeFi is characterized by open source protocols and smart contracts, which allow you to exploit code already developed by other users to create other services. This promotes innovation and transparency within the ecosystem.
DAO
An acronym for Decentralized Autonomous Organization. The activities and executive power of this type of organization are managed by rules codified in a Smart Contract.
Arbitration
Making a series of quick purchases and/or sales, usually for a large amount of money, in different markets in order to make a profit. For example, a trader may buy at a lower price on one exchange and immediately sell at a higher price on another exchange.
DApp
Short for Decentralized Application, which is a decentralized application based on the blockchain. Dapps are guaranteed and regulated by smart contracts. Ethereum facilitated the development of Dapps by first providing a language for programming smart contracts.
DEX
This acronym stands for “Decentralized Exchange” and refers to a cryptocurrency exchange platform that is not controlled by any intermediaries or companies, but is entirely entrusted to smart contracts and algorithms. DEXs often require even more technical skills than CEXs and a deep knowledge of cryptocurrencies. They do not support fiat currencies and do not allow withdrawals and deposits via traditional payment systems.
ERC-20
The Ethereum ERC-20 standard defines a list of common rules for Ethereum-based tokens, allowing developers to accurately predict the interaction between tokens and easily create their own.
Lending
Lending cryptocurrencies to other users in exchange for a reward, or profiting from a loan made by another user. Cryptocurrency lending should not be compared to traditional lending: borrowers use these loans as part of trading strategies to make big profits. Cryptocurrency lending services can be both centralized and decentralized.
MA
Automated Market Maker (AMM) decentralized trading protocols are used by some decentralized trading venues to address liquidity shortages.
These are a series of smart contracts that determine prices using an algorithm and use pools of liquidity to automatically execute buy and sell orders.
Smart Contract
Software that automatically activates certain actions if certain conditions occur. The most common use of smart contracts is when mediating a financial transaction between two entities on the blockchain. Ethereum is the first project to provide a language and platform that makes it easier for anyone to develop smart contracts.
Staking Derivative
Staking derivatives are secondary assets typical of some staking systems in which rewards are not obtained with native tokens but through derivatives. In these systems, those who lock their tokens receive other corresponding tokens of the same amount. For example, if you deposit 32 ETH in a derivative staking protocol, you receive 32 stETH and the staking rewards are paid in stETH. They represent the tokens put into play and the rewards that were accumulated during the staking period. The value of staking derivatives depends on the total amount of rewards that are granted in the network and the performance of the primary reference asset. They are tradable assets at all effects and can therefore be purchased even by those who do not own the actual underlying tokens in staking.
Swap
In decentralized finance, we talk about swaps when tokens are exchanged on decentralized platforms.
Yield Farming
Literally translated as yield farming, this term includes all the tools and activities that allow one to reap frequent profits through the use of crypto assets outside of trading. It is a typical service of DeFi, decentralized finance.