DeFi Glossary

The yearly interest rate earned on an investment without compounding.

The yearly interest rate earned on an investment including compound interest.

A smart contract containing locked crypto assets used to facilitate trading on DEXs.

The practice of maximizing returns by strategically moving crypto assets between DeFi protocols.

The temporary loss of value when providing liquidity to an AMM compared to simply holding.

The total market value of a cryptocurrency, calculated by multiplying price by circulating supply.

A smart contract mechanism that restricts access to tokens for a predetermined period.

Locking cryptocurrency in a protocol to earn rewards and/or support network operations.

Self-executing code on a blockchain that automatically enforces agreement terms.

A high-performance blockchain known for fast transactions and low fees.

A Token-2022 extension that enables encrypted token balances and private transactions on Solana.

A public-key cryptosystem with homomorphic properties used for encrypting token balances.

A cryptographic method to prove a statement is true without revealing any additional information.

A multi-tier system that rewards users for bringing new participants to a protocol.

A percentage of transactions collected by a DeFi protocol for operations or redistribution.

A toggle in Floops that enables encrypted staking using Confidential Transfers.