DeFi glossary
Swaps, liquidity pools, lending and yield. Follow the DeFi conversation from a wallet approval to the numbers behind a liquidity position.
Peg
A target price relationship between an asset and a reference asset or value.
Price feed
A source of asset-price updates that applications can read, often through an onchain oracle record.
Price impact
The change in a trade’s effective price caused by that trade using available liquidity.
Slippage tolerance
The maximum unfavorable difference from a quoted trade that a user agrees to accept.
Stablecoin
A crypto asset designed to track a reference value, commonly a national currency.
Swap
An exchange of one asset for another, often executed through a blockchain trading protocol.
Swap fee
A charge applied by a trading protocol when exchanging assets.
Tick
A discrete price boundary used to organize ranges in certain concentrated-liquidity AMMs.
Tokenized vault
A contract that pools an asset and issues shares representing a claim on its managed holdings.
TVL
Total value locked: an estimate of the monetary value of assets deposited in a protocol or category.
Utilization rate
The proportion of a lending pool’s supplied liquidity that is currently borrowed.
WETH
Wrapped ether: an ERC-20 token representation of ETH created by a wrapping contract.
Wrapped token
A token that represents another asset through a wrapping or bridging arrangement.
Yield farming
Using crypto positions or protocols to seek returns from interest, fees or incentives.
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