🛒Naming Conventions
Last updated
Last updated
What does it all mean??? This is the DeFi naming convention.
Simply put, it is the agreed upon way of communicating which crypto is being expressed by the acronym. cETH is a Compound derivative of ETH.
As DeFi grew and more financial instruments began being built ie. wrapped coins, ownership tokens, pooled tokens governance tokens, sidechain tokens, layer 2 tokens, etc, generally the project creating the financial instrument on top of the base layer would put a lowercase letter in front of the base asset. Slowly this became the standard and is a good way of identifying which protocol's derivative asset you are dealing with. Some are not actually 1:1, such as bBADGER and xSUSHI and are designed to grow in the base asset value over time.
Also, keep in mind anyone can name their token "cETH", which is why it is important to know you have the right one. You can either search for the token: eg. cETH 👇
or you can check for it on a token list: 👇
These are a combination of assets pooled to provide liquidity. Liquidity pools use algorithms called Automated Market Makers (AMM) to provide constant liquidity for trading.
"Now I am really confused!"
