Crypto terms, explained plainly
124 short definitions and a handful of guides. Every term links to the coins and charts where you will meet it, and the ones the model actually uses say so.
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A
An exchange that prices trades with a formula and pooled liquidity instead of an order book.
C
- CollateralDeFi
Assets locked to back a loan or a stablecoin, seized if the position falls below its ratio.
D
On-chain governance by token holders, usually with proposals, votes and a treasury.
Financial services run by smart contracts on a blockchain, without a bank in the middle.
I
- Impermanent lossDeFi
The gap between supplying liquidity and simply holding the two assets as prices diverge.
L
- Liquidity poolDeFi
Tokens locked in a contract that traders swap against, earning the pool's fee share.
P
- Price oracleDeFi
The data feed a contract reads to learn an asset's price from outside the chain.
S
- Smart contractDeFi
Code deployed to a blockchain that runs automatically when its conditions are met.
The chance that a contract's code or admin keys take your funds, regardless of price.
- StakingDeFi
Locking tokens to back a network or a protocol, usually for a yield of new issuance or fees.
T
The value of assets deposited in a protocol's contracts; its main usage measure.
V
- ValidatorDeFi
A node that proposes and attests blocks in a proof-of-stake network.
Y
- Yield farmingDeFi
Chasing token incentives across protocols to earn the highest annualised yield.