DeFi

A distribution of free tokens to wallet addresses, typically used for marketing, community rewards, or governance token distribution.

A decentralized exchange mechanism that uses mathematical formulas and liquidity pools instead of order books to facilitate token swaps.

The mathematical function governing how a decentralized exchange prices tokens based on the ratio of assets in a liquidity pool.

Annual Percentage Rate — the yearly interest rate earned on deposits or paid on loans, without accounting for compounding effects.

Annual Percentage Yield — the effective yearly return accounting for compound interest, always higher than the equivalent APR.

A trustless peer-to-peer exchange of cryptocurrencies between different blockchains using hash time-locked contracts without intermediaries.

A smart contract-based system that uses mathematical formulas to price assets in liquidity pools, enabling decentralized trading without order books.

A mathematical function that determines a token's price based on its supply, automatically increasing price as more tokens are minted.

A protocol that enables the transfer of assets between different blockchain networks, connecting isolated ecosystems.

The ratio of collateral value to the value of borrowed assets in a DeFi loan, determining safety margin before liquidation.

The ability of DeFi protocols to interact seamlessly with each other, enabling complex financial strategies by stacking protocols like building blocks.

A DEX mechanism allowing liquidity providers to allocate capital to specific price ranges rather than the full spectrum, improving capital efficiency.

Decentralized finance: lending, trading, and other financial services run by smart contracts rather than a custodial intermediary.

A cryptocurrency exchange that operates without a central authority, using smart contracts on a blockchain to facilitate peer-to-peer trading.

A platform that sources liquidity from multiple decentralized exchanges to find the optimal swap route and best execution price for token trades.

An uncollateralized DeFi loan that must be borrowed and repaid within a single blockchain transaction, enabling zero-capital arbitrage.

An exploit that uses uncollateralized flash loans to temporarily manipulate market conditions and drain funds from vulnerable DeFi protocols.

A token that grants holders voting rights over protocol decisions including upgrades, fee structures, treasury allocation, and parameter changes.

The temporary loss of value experienced by liquidity providers when the price ratio of pooled tokens changes relative to simply holding them.

The temporary loss of value experienced by liquidity providers in AMMs when the price ratio of deposited tokens changes compared to simply holding them.

A token launch method where a new cryptocurrency is first sold to the public through a decentralized exchange launchpad.

A DeFi platform that allows users to lend assets for interest or borrow against collateral, creating decentralized credit markets.

A mechanism that issues derivative tokens representing staked assets, allowing users to earn staking rewards while maintaining liquidity and DeFi composability.

A tokenized representation of staked assets that can be freely traded or used in DeFi while the underlying assets remain staked and earning rewards.

A mechanism where protocols distribute tokens to users who provide liquidity, incentivizing capital deployment and bootstrapping new markets.

A collection of cryptocurrency tokens locked in a smart contract that provides liquidity for decentralized trading, enabling AMMs to facilitate swaps without traditional order books.

A user who deposits assets into a DeFi protocol pool, earning trading fees and potentially token rewards in exchange for supplying market liquidity.

The profit that can be extracted from block production beyond standard rewards, by strategically ordering, including, or censoring transactions.

The profit validators or searchers can extract by reordering, inserting, or censoring transactions within a block, exploiting DeFi arbitrage and front-running opportunities.

Techniques and tools that shield DeFi transactions from being exploited by MEV bots through front-running, back-running, or sandwich attacks.

A service that feeds external real-world data (prices, events, random numbers) to smart contracts that cannot natively access off-chain information.

A decentralized exchange that offers perpetual futures trading on-chain, combining the leverage of derivatives with the self-custody of DeFi.

The fees earned by a DeFi protocol from its users, representing the actual cash flow generated by the smart contract system.

A DeFi mechanism that allows staked assets to simultaneously secure multiple networks or services, earning additional yield on the same capital.

A scam where project developers drain liquidity or abandon a project after collecting user funds, leaving token holders with worthless assets.

A form of MEV extraction where an attacker front-runs and back-runs a pending DEX transaction, profiting from the price impact at the victim's expense.

A punitive mechanism in Proof-of-Stake networks that destroys a portion of a validator's staked tokens for malicious behavior or extended downtime.

A professional security review of a smart contract's code to identify vulnerabilities, logic errors, and attack vectors before deployment.

A cryptocurrency designed to maintain a stable value relative to a reference asset, typically the US dollar, through various backing and stabilization mechanisms.

The process of locking up cryptocurrency to support a proof-of-stake blockchain network, earning rewards in return for helping validate transactions.

A smart contract mechanism that enforces a mandatory waiting period before certain actions can be executed, providing security against sudden malicious changes.

A scheduled event where previously locked or vesting tokens become freely tradeable, often creating sell pressure as early investors and teams realize gains.

The aggregate dollar value of assets deposited into a DeFi protocol, measuring its adoption, trust, and capital attraction.

The total amount of cryptocurrency deposited in a DeFi protocol's smart contracts, used as a primary metric for measuring protocol adoption and health.

The ratio of a DeFi protocol's revenue to its Total Value Locked, measuring how efficiently the protocol monetizes its deposited capital.

An automated smart contract strategy that deposits, compounds, and manages user funds to optimize yield across DeFi protocols.

A token model where holders lock tokens for extended periods to earn voting rights and boosted rewards, aligning long-term incentives and reducing sell pressure.

A token on one blockchain that represents an asset from another blockchain, enabling cross-chain asset usage in DeFi.

A DeFi platform that automatically moves user funds between protocols to maximize yield by finding and switching to the best available rates.

A DeFi strategy of deploying crypto assets across protocols to maximize returns through lending, liquidity provision, and staking reward optimization.