Coynful

Glossary of Terms

Glossary & Terms

Decentralized Exchange (DEX) Terms

  1. Liquidity Pool – A pool of tokens locked in a smart contract to facilitate trading.
  2. Slippage – The difference between the expected and actual trade price.
  3. Impermanent Loss – A temporary loss incurred when providing liquidity.
  4. LP Token – A token representing ownership of a share in a liquidity pool.
  5. Swap – Exchanging one cryptocurrency for another on a DEX.
  6. Yield Farming – Earning rewards by providing liquidity or staking.
  7. Cross-Chain – Transferring assets between different blockchains.
  8. Router – A smart contract that facilitates trades on a DEX.
  9. Order Book – A list of buy and sell orders on a traditional exchange (rare in DEXs).

DeFi Terms

  1. Decentralized Finance (DeFi) – Financial services without intermediaries, using smart contracts.
  2. Staking – Locking tokens in a blockchain to earn rewards or secure the network.
  3. Lending/Borrowing – Using protocols to lend or borrow crypto assets.
  4. Collateralization – Pledging assets to secure a loan.
  5. APY (Annual Percentage Yield) – The annual return on investment, including compounding.
  6. Flash Loan – Unsecured loans that must be repaid within a single transaction, often used for arbitrage or rebalancing
  7. DAO (Decentralized Autonomous Organization) – An organization governed by smart contracts and token holders.
  8. TVL (Total Value Locked) – The total value of assets locked in a DeFi protocol.
  9. Liquidity Mining – Earning tokens by providing liquidity to a protocol.
  10. Synthetic Assets – Tokenized versions of real-world assets.

Advanced Concepts

  1. Interoperability – The ability of different blockchains to communicate.
  2. Governance Token – Tokens allowing holders to vote on protocol changes.
  3. Chainlink Keeper – A decentralized automation service that triggers smart contract functions based on specific conditions (like price thresholds).
  4. Oracles – Services that connect blockchain with off-chain data (e.g., Chainlink).
  5. Adaptive Crawling: The use of AI algorithms to analyze website structure and metadata, prioritizing high-value websites for efficient data collection.
  6. Algorithmic Stablecoin: A type of stablecoin that uses algorithms to adjust its supply, maintaining a stable value without relying on traditional collateral.
  7. Automated Market Maker (AMM): A decentralized exchange protocol that uses mathematical formulas to price assets, eliminating the need for traditional order books.
  8. Gas Abstraction Protocol: A system that allows users to pay transaction fees in tokens other than the native currency of the blockchain.
  9. Natural Language Processing (NLP): A branch of artificial intelligence that enables computers to understand human language.
  10. Peer-to-Peer (P2P): A decentralized interaction between two parties directly.
  11. Semantic Search: A search technique that aims to improve search accuracy.