Crypto Dictionary word feed

The launch collection
Intermediate

Impermanent loss

A liquidity position's shortfall relative to holding the originally supplied assets separately, caused by changing relative prices.

The comparison typically excludes fees and incentives. Despite the name, the shortfall can become realized when liquidity is withdrawn.

IN THE WILD
An AMM rebalances an LP's assets after one token doubles in relative price.
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Sandwich attack

A trading attack placing transactions before and after a victim's trade to exploit its price movement.

Public pending trades and permissive execution limits can increase exposure. Fees, liquidity and routing affect whether the attack is profitable.

IN THE WILD
An attacker buys before a pending swap and sells after it moves the price.
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Intermediate

Address poisoning

An attack that inserts misleading activity involving a lookalike address into a user's transaction history.

The attacker hopes the user copies the wrong address for a later transfer. Receiving a spam transaction alone does not give the attacker spending access.

IN THE WILD
A zero-value transfer displays an address resembling a trusted recipient.
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Advanced

Flash loan

A loan that must satisfy repayment or approved debt conditions within the same atomic transaction.

An uncollateralized flash borrowing generally reverts if repayment and fees are not provided. Flash loans are tools, not inherently exploits.

IN THE WILD
A transaction borrows funds, performs arbitrage and repays before completion.
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Intermediate

Token approval

Authorization that lets a specified spender move a token owner's assets under the token contract's rules.

ERC-20 approvals set allowances; NFT approvals use different mechanisms. Disconnecting a website does not automatically revoke onchain permissions.

IN THE WILD
A user approves a swap contract to spend a limited token amount.
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Intermediate

Blind signing

Approving a transaction or message whose relevant effects are not meaningfully displayed or understood.

Opaque data can hide asset permissions or transfers. A hardware wallet can still authorize harmful actions when the signer does not inspect the intent.

IN THE WILD
A user signs unreadable data requested by an unfamiliar application.
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Intermediate

Liquid staking

Staking through a system that gives users a transferable token representing their staking position or claim.

The token can be used elsewhere, but adds protocol, operator and market-price risks beyond direct staking. Redemption can involve delays.

IN THE WILD
A user receives a staking representation token after depositing ETH.
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Beginner

Blockchain

A ledger organized into blocks that reference earlier blocks through cryptographic hashes.

Network participants verify updates against shared rules. Rewriting history requires overcoming the chain's consensus protections.

IN THE WILD
A Bitcoin payment becomes part of the ledger when its block is accepted.
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