Glossary

Impermanent Loss (IL)

The temporary loss of funds experienced by liquidity providers due to the volatility in the price of paired assets in an automated market maker (AMM) pool.

Inflationary Rewards

Rewards are given to participants that are generated by increasing the total supply of tokens, often used as an incentive in staking or liquidity mining programs.

Yield Decay

The gradual reduction in the return on investment (ROI) over time, is often observed in yield farming or staking programs as more participants join and share the rewards.

Artificial Intelligence (AI)

The simulation of human intelligence in machines that are programmed to think and learn like humans often used to analyze data and make decisions.

Machine Learning (ML)

A subset of AI that involves the use of algorithms and statistical models to enable computers to improve their performance on tasks through experience.

Simulations

The process of modeling the behavior of a system using mathematical formulas and algorithms to predict outcomes in various scenarios without affecting the real system.

Algorithm

A step-by-step procedure or formula for solving a problem or performing a task, is often used in computer programming and data processing.

Vault

A secure storage mechanism for digital assets, often used in the context of decentralized finance (DeFi) refers to smart contracts that manage and automate investment strategies.

Decentralized Exchange (DEX)

A peer-to-peer marketplace where users can swap crypto assets and/or provide liquidity to the exchange (for a share in platform revenue).

Money Market

Decentralized protocols used for lending and borrowing crypto assets.