General Glossary
Short explainers on all generic terms used within this documentation.
Automated Market Maker, Smart Contract based Market Maker. Usually, the model used to provide liquidity to Decentralized Exchanges.
A review of software safety and quality, usually done by a third party.
A bounty, often paid in cash, reserved for participants and white-hat hackers who find bugs.
Entity that aggregates capital from multiple users. Examples include: Wallet services, Exchanges and Mobile Crypto Applications.
Percentage of backing of a loan. If $1 worth of ETH is deposited and $0.5 USDC can be borrowed in return: The Collateral Ratio is 2. ($1/$0.5)
To compound. A verb describing the process of adding earnings (from "yield" / interest) back to the principal to ensure exponential growth of the interest bearing investment.
Decentralized Stablecoin, overcollateralized and issued by DeFi Protocol MakerDAO.
Decentralized Autonomous Organization, entity that manages a DeFi Protocol controlled by organization members.
An entity or construct that is not governed by a central entity. For simplicity's sake: A "bank" is centralized, a crypto wallet isn't.
Decentralized Finance, a collection of a Financial Ecosystem where no Central entity is present.
Decentralized Exchange, a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary.
The art of spreading risk across multiple assets or locations.
In Decentralized Finance the term "Emissions" is used to indicate tokens which are sent out to users in the form of rewards or tokens granted to early investors. In Spool "Emissions" refer to the former: SPOOL Tokens sent to users as a reward for providing liquidity to the Spool Ecosystem.
A period of time. "An epoch of 28 days."
The most frequently used Token Implementation Smart Contract Standard on Ethereum.
Ethereum.
Ethereum Virtual Machine, Smart Contract Blockchain Environment. The "computer" that runs DeFi.
The costs associated with submitting a transaction to the Ethereum Blockchain.
Governance refers to holding control over an organization, in Crypto it most often refers to exercising control over the course of a Crypto Project itself. A Decentralized Autonomous Organization (DAO) being the most used form of governance.
Key Performance Indicator, an indicator that can be used to measure performance of an individual or company/team.
Liquidity Bootstrapping Event, fair launch sale process introduced by Balancer.
Borrowing money in order to increase exposure to a certain investment.
Definition of assets available for trading against, such as assets held by counter parties.
Offering the option, but not the obligation for other market participants to transact X for Y with you.
Tokens which act as "receipts" of depositing liquidity to a Decentralized Exchange.
Software that sits between the backend and the frontend. Middleware is easily understood as software that the user doesn't notice is being used.
Holding funds in a location without that location being held by a (central) party.
Fees paid over positive performance, "fees over profit, and profit only".
Your personal holdings.
In-house developed.
Autonomous "software" on the blockchain.
Moving funds between different locations. For example: Reallocating funds from Aave to Compound.
In Decentralized Finance "Rewards" often refer to receiving tokens in exchange for a service, action or, participation. An example would be: depositing to a Uniswap Liquidity Pool and receiving UNI Tokens.
The willingness to take risk, someone trading high leverage has a high appetite for risk.
Software Development Kit, well-documented and easy way to integrate middleware in existing software solutions.
Market where investors exchange assets with other investors.
Program or set of rules executed on the blockchain without counterparty risk.
Decentralized Governance Platform, used for Spool Ecosystem Governance.
The act of taking risk in the assumption that your view of the market comes to fruition. "He is speculating on the price of Bitcoin by buying BTC."
Crypto Token that represents one United States Dollar in value.
Decentralized "trade": "Swapping ETH for USDC on Uniswap".
Virtual (Crypto) currency, issued by a DAO or company.
Available funds of a DAO, in the context of this documentation.
Total Value Locked, The current value locked in a DeFi Protocol denominated in USD.
User Interface, most often refers to a website.
The underlying currency deposited or used in a DeFi Protocol. Within Spool this mostly refers to stablecoins.
The famous Decentralized Exchange. Used to exchange Token A for Token B or provide liquidity to the Token A / Token B Trading Pair.
Fiat backed stablecoin issued by Circle.
In DeFi refers to a Smart Contract containing assets with the intent to generate "Yield".
Device, physical medium or software that stores the private key to your blockchain wallet address.
Common definition for an upgraded internet based on decentralized infrastructure.
Return on an investment over a set period of time. 10% annual percentage yield refers to receiving 10% of your collateral in profits over the course of a year.
The act of engaging with DeFi Protocols in order to obtain the aforementioned yield.
A DeFi protocol where users can participate with the intent to generate yield.
DeFi protocols that aims to optimize yield generation for its users.
Last modified 4mo ago