Glossary of Terms

Liquidity Pool – A pool of tokens locked in a smart contract to facilitate trading.
Slippage – The difference between the expected and actual trade price.
Impermanent Loss – A temporary loss incurred when providing liquidity.
LP Token – A token representing ownership of a share in a liquidity pool.
Swap – Exchanging one cryptocurrency for another on a DEX.
Yield Farming – Earning rewards by providing liquidity or staking.
Cross-Chain – Transferring assets between different blockchains.
Router – A smart contract that facilitates trades on a DEX.
Order Book – A list of buy and sell orders on a traditional exchange (rare in DEXs).

Decentralized Finance (DeFi) – Financial services without intermediaries, using smart contracts.
Staking – Locking tokens in a blockchain to earn rewards or secure the network.
Lending/Borrowing – Using protocols to lend or borrow crypto assets.
Collateralization – Pledging assets to secure a loan.
APY (Annual Percentage Yield) – The annual return on investment, including compounding.
Flash Loan – Unsecured loans that must be repaid within a single transaction, often used for arbitrage or rebalancing
DAO (Decentralized Autonomous Organization) – An organization governed by smart contracts and token holders.
TVL (Total Value Locked) – The total value of assets locked in a DeFi protocol.
Liquidity Mining – Earning tokens by providing liquidity to a protocol.
Synthetic Assets – Tokenized versions of real-world assets.

Interoperability – The ability of different blockchains to communicate.
Governance Token – Tokens allowing holders to vote on protocol changes.
Chainlink Keeper – A decentralized automation service that triggers smart contract functions based on specific conditions (like price thresholds).
Oracles – Services that connect blockchain with off-chain data (e.g., Chainlink).