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Borrowing: The process of taking out a loan in cryptocurrencies from a DeFi platform, usually by providing other crypto as collateral.
Coin: A digital currency that operates on its own blockchain, primarily used as a medium of exchange or store of value. They are needed for the blockchain to function and are often used as gas (see below).
Custodial Wallet: A wallet where a third party, like an exchange, holds the private keys, meaning they have control over your assets.
dApp: Decentralized Application. An application built on a decentralized network that combines a smart contract and a frontend user interface.
Degen: Degenerative. Typically referring to a person or action that is extremely risky.
Fiat: Traditional money such as US Dollars, Euro, Pound, etc.
Gas: The fees paid to conduct a transaction or execute a contract on a blockchain network, particularly in Ethereum-based DeFi.
Governance Token: A cryptocurrency that gives holders the right to vote on decisions affecting the future of a DeFi platform or protocol.
Impermanent Loss: The temporary loss of funds experienced by liquidity providers in a liquidity pool due to volatility in the price of assets.
Lending: The act of loaning your crypto assets to others through a DeFi platform, often in return for interest payments
Liquidity Pool: A collection of funds locked in a smart contract, used to facilitate trading on a DEX by providing liquidity.
Off-Board: Selling crypto for fiat, usually through an exchange.
On-Board: Swapping fiat for crypto, usually through an exchange.
Private Key: A confidential code known only to the owner of a digital wallet, used to access and manage cryptocurrencies.
Public Address: A publicly visible identifier, similar to an account number, used to receive cryptocurrency transactions.
Self-Custody Wallet: A type of digital wallet where the user holds and controls their private keys, giving them full control over their assets.
Smart Contract: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
Stablecoin: A type of cryptocurrency that is pegged to a stable asset, like the US dollar, to maintain a consistent value.
Token: A digital asset created on an existing blockchain, representing assets or utility within a specific ecosystem. Can include “currencies” or “NFTs”.
Trading: The buying and selling of cryptocurrencies or crypto-based assets, often done on decentralized exchanges (DEXs).
WAGMI: We’re All Gonna Make It
WNGMI: We’re Not Gonna Make It
Yield Farming: A strategy where users lend or stake their crypto assets in a DeFi protocol to earn more cryptocurrency as rewards.