DeFi Glossary

A digital or virtual currency secured by cryptography, making it nearly impossible to counterfeit or double-spend.

A distributed digital ledger that records transactions across many computers in a way that makes them difficult to alter retroactively.

A digital tool that allows you to store, send, and receive cryptocurrencies. Can be software-based (hot) or hardware-based (cold).

A secret cryptographic key that allows you to access and control your cryptocurrency funds. Never share this with anyone.

Financial services built on blockchain technology that operate without traditional intermediaries like banks or brokers.

A collection of funds locked in a smart contract used to facilitate trading on decentralized exchanges.

The practice of lending or staking cryptocurrency to earn rewards, often in the form of additional tokens.

Self-executing contracts with terms directly written into code, automatically enforcing agreements without intermediaries.

Originally a misspelling of "hold," now means holding onto cryptocurrency for long-term investment rather than trading.

The total value of a cryptocurrency calculated by multiplying the current price by the total circulating supply.

The difference between the expected price of a trade and the actual price at which the trade is executed.

The temporary loss of funds that liquidity providers may experience when providing liquidity to automated market makers.

Transaction fees paid to miners or validators to process transactions on a blockchain network.

The method by which a blockchain network agrees on the validity of transactions (e.g., Proof of Work, Proof of Stake).

A change to a blockchain's protocol that creates a new version of the blockchain, either backward-compatible (soft fork) or not (hard fork).

A computer that participates in a blockchain network by maintaining a copy of the blockchain and validating transactions.