🔎Definitions

A B C D E F

A

Ape - generally means to go nuts over something without regard for consequences "Nothing like DeFi Chad's aping into every project to make you want to write it all off."

APR aka Annual Percentage Rate - this interest rate does not take into account compounding interest.

APY aka Annual Percentage Yield - the compounding interesting earned yearly. Some DeFi projects have very high and fluctuating APY and thus in most cases the daily yield is more valuable. Some projects can calculate and send rewards as quickly as hours, ie. Badger rewards are given every 2 hours. see BPY/BPR or DPY/DPR

B

BPR aka Block Percentage Rate -

BPY aka Block Percentage Yield -

C

CEX aka Centralized Exchange - an exchange that is run by a centralized organization or company and is not governed by a community or protocol. they hold the private keys of the cryptocurrency stored on the exchange.

Cold Wallet - generally this is a crypto wallet address on the blockchain that has it's 12 word mnemonic phrase stored securely and is rarely if ever used to

D

DAO aka Decentralized Autonomous Organization - this is a community governed project where there are tokens used for governance votes and the community drives the future of the project

DApps aka Decentralized Applications - smart contract protocols hosted on a blockchain, in most cases Ethereum mainnet

DeFi aka Decentralized Finance - the future of cryptocurrency and blockchain related financial instruments, namely protocols/smart contracts/cryptographic code governed through a community/token.

Degen aka Degenerate - someone who generally does not have a life or rather spends every waking minute consumed by DeFi and finding the next biggest/highest yield DeFi project, aping into no front-end, un audited protocols with their kids college funds or mother-in-laws surgery money.

DEX aka Decentralized Exchange - this is a exchange that is protocol specific, not owned by a centralized entity and is often governed by a community voting system and or token. Generally developed and ran by a front-end user interface that allows anyone to interact with and exchange crypto trading pairs, in most cases ETH or ERC20 tokens.

DPR aka Daily Percentage Rate - in DeFi things happen quickly and often rewards are available on a small time frame. Thus, the daily interest rate on deposited funds not taking into account compounding interest might be helpful to calculate your DPR

DPY aka Daily Percentage Yield - in DeFi things happen quickly and often rewards are available on a small time frame. Thus, the daily interest rate on deposited funds taking into account all compounding interest might be helpful to calculate your DPY

E

ETH aka Ethereum - currently the most widely used cryptocurrency for DApps, founded by Vitalik Buterin in 2015 and is continually being developed.

ERC20 - a technical standard on the Ethereum blockchain that is used by over 200,000 tokens as anyone is able to create one. ERC20 tokens come with rules on how they interact, transfer, transact, total supply, etc. on the Ethereum blockchain.

Exchange - whether centralized or decentralized, a place to exchange currency. Currently only able to exchange Fiat for Crypto on CEX, and many trading pairs are only available on DEX.

F

FOMO aka Fear of Missing Out - kind of self explanatory. Don't let it eat you alive or it will make you do stupid things!

G H I J K L M

G

Gas - the term used to describe the fee associated with transacting on the blockchain.

Gwei - the term used to measure the gas used in a transaction on the Ethereum blockchain.

H

Hot Wallet - this is a wallet that generally holds smaller funds or is "open" to multiple and active transactions on a regular basis and is regarded as less secure because the private key is being used frequently. "The exchange lost all the funds in their hot wallet."

I

J

K

L

M

Mnemonic Phrase - the 12 word phrase associated with your private key that allows you to access the funds in your addresses. Keep this secure at all times and never share it with anyone!

N O P Q R S

N

NFT aka Non-Fungible Token - a unique and exclusive digital token that cannot be forged or fabricated. Examples are pieces of art, game assets like cards or avatars, music and more.

O

P

PnD aka Pump and Dump - the process by which a project or token price is spiked up high by those behind the project, whether a single entity or army of goons, to then be dumped on investors who bought in, generally happens very quickly and without much warning.

Ponzi - by definition, a scheme to defraud investors by taking funds invested by future investors to pay early investors and not actually having profits from a product or other means. The investors are the source of funds.

Private Key -

Project - a general term used for a DeFi protocol that may have a team/developers/community or token associated with a DAO and not just a coin or token.

Protocol - the smart contract code used by a blockchain or cryptocurrency.

Q

R

S

Seed Phrase -

T U V W X Y Z

T

Token - basically the specific tool for interacting with a smart contract protocol, either as a currency, governance voting mechanism, or create unique items (NFT)

U

V

W

Wallet - the specific address where your funds are stored which can be access through software, online, or through a hardware device that interacts with your addresses and private key.

X

Y

Yield Farming - the act of staking or being involved in multiple DeFi projects that have high APY and often have the ability to compound the reward into multiple tokens circling back into each other.

YOLO aka You Only Live Once - often used to describe the behavior Degens live by. "Totally going to YOLO into this new DeFi project incase they have an airdrop!"

YEET - by definition to throw something with a lot of force "Dude, just YEET your 401k into DeFi like a real Chad!"

Z