De-Fi Terminologies

Gm Mouse member🐭,

Hey web3 contributor, today I'm sharing a list of De-Fi (Decentralized Finance) terms that you should definitely be familiar with if you're in the web3 tech space. De-Fi has exploded in popularity over the past few years, and it's important to have a strong understanding of the lingo and terminology used in this sector. Some of the key terms you should know include:

1.Stablecoin: A cryptocurrency designed to minimize price volatility, often by being pegged to a traditional asset like the US dollar.

2. Yield farming: The practice of providing liquidity to a decentralized finance protocol in exchange for rewards.3.Liquidity: the ability to buy or sell an asset without affecting its price

4.Wrapped Bitcoin (WBTC): a tokenized version of Bitcoin on Ethereum, enabling users to use Bitcoin in Ethereum-based DeFi protocols.

5.Governance token: a cryptocurrency or token that gives holders the right to participate in the decision-making process of a decentralized platform or protocol.

6.Flash loan: a short-term loan that is automatically repaid before it is due, often used for arbitrage or market manipulation on DeFi platforms

.7.Staking: The process of holding a certain amount of a cryptocurrency in a wallet and participating in the validation of transactions on a proof-of-stake (PoS) blockchain.

8. ZK-rollup: A type of layer-2 scalability solution that allows for faster and cheaper transactions on the Ethereum blockchain by batching them into a single, compressed transaction.

9. DEX: short for decentralized exchange that works as a peer-to-peer exchange network based on the DeFi platform.

10. Smart contracts: programs stored on a blockchain platform that works when prearranged conditions and terms are met. Understanding these DeFi keywords is essential for navigating the exciting and rapidly evolving decentralized finance spaceShare this list with your frens :)Thank you

Mouse writer 🐭

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