A decentralized lending protocol where users deposit crypto to earn interest and borrow against collateral.

Annual Percentage Rate (APR) is the yearly interest rate without accounting for compounding effects.

Annual Percentage Yield is the yearly return on investment including compounding effects.

Buying an asset at a lower price on one venue and selling at higher price on another to profit from differences.

Smart contract protocol using mathematical formulas and liquidity pools to enable trading without order books.

Mass withdrawal of funds from a protocol or exchange as users lose confidence in solvency.

Borrowing in DeFi means taking a crypto loan from a protocol, usually by locking up other assets as collateral.

Assets deposited into a lending protocol as security for borrowed funds, held until the loan is repaid.

Collateral ratio is the relationship between the value of collateral posted and the amount borrowed against it.

Composability is the ability of blockchain apps and smart contracts to work together like building blocks.

A lending protocol pioneering autonomous interest rate setting through supply and demand mechanics.

A specialized DEX optimized for stablecoin and correlated asset swaps with low slippage.

A decentralized exchange (DEX) is a peer-to-peer platform for trading cryptocurrencies using smart contracts without intermediaries.

Decentralized Finance (DeFi) is financial services like lending, borrowing, and trading built on blockchains without traditional intermediaries.

A standard for tokenized yield-bearing vaults, enabling standardized interaction with yield-generating DeFi protocols.

A DeFi strategy where users provide liquidity and stake tokens to earn high yields.

An uncollateralized loan borrowed and repaid within a single transaction, enabling atomic arbitrage and liquidations.

The loss liquidity providers experience when token prices in a pool diverge from when they deposited.

Smart contract protocols enabling users to deposit cryptocurrency and earn interest while borrowers obtain loans.

Using borrowed funds to increase exposure to an asset, amplifying both potential profits and potential losses.

A liquid staking protocol allowing users to stake ETH and receive stETH tokens while continuing to use their capital.

Automatic sale of collateral when borrower's loan falls below required collateral ratio.

The ease and speed at which assets can be bought or sold without significantly affecting their price.

When a protocol cannot meet withdrawal requests because insufficient reserves, causing mass losses.

A smart contract holding equal values of two tokens that enable decentralized trading through automated market makers.

User who deposits cryptocurrency into liquidity pools to earn trading fees and provide DEX liquidity.

A protocol for creating DAI stablecoin by collateralizing crypto assets through decentralized governance.

The value extracted by miners or validators by reordering or censoring transactions for profit.

Leveraged derivatives contracts that allow long/short trading without expiration dates.

The change in token price caused by a trade execution, especially significant on AMMs with lower liquidity.

The difference between the expected price and the actual executed price when trading, especially on AMMs.

A cryptocurrency designed to maintain a stable price by being pegged to a reserve asset.

Trading one cryptocurrency for another on a decentralized exchange, executing directly from your wallet.

A token whose value is derived from and tracks the price of another asset, without owning that asset directly.

The total value of all assets deposited into a DeFi protocol, used to measure protocol size and user trust.

The total amount of an asset that is bought and sold during a specified time period.

The largest decentralized exchange using automated market makers to enable token swaps without order books.

A yield farming aggregator automating strategies to maximize returns on deposited assets.

A strategy of depositing crypto into DeFi protocols to earn returns, often incentivized by token rewards.