The Dictionary
Explore 1,139+ clear, technical, and objective definitions defining the decentralized future.
Recently Defined
Politically Exposed Person (PEP)
A politically exposed person is an individual entrusted with a prominent public function who may require enhanced financial-crime risk controls.
Money Services Business (MSB)
A Money Services Business is a regulated business category that can include certain money transmission, exchange, or payment activities.
Money Transmitter
A money transmitter is a person or business that accepts and transmits money or value for others under applicable law.
Regulatory Sandbox
A regulatory sandbox is a supervised framework allowing eligible firms to test financial products or services under controlled regulatory conditions.
Money Market
A DeFi money market is an on-chain system where users supply assets that others can borrow under protocol-defined collateral and interest rules.
Fixed-Rate Lending
Fixed-rate lending is a DeFi arrangement where borrowing or lending terms use a predetermined rate for a defined period or position.
Vault Curator
A vault curator is a person, team, or automated system that selects and manages strategies, markets, or risk parameters for a DeFi vault.
Liquidity Mining
Liquidity mining distributes token incentives to users who supply liquidity or perform other targeted protocol activities.
Protocol Fee
A protocol fee is the portion of transaction, swap, lending, or other fees retained by the protocol or its treasury.
Swap Fee
A swap fee is the charge paid by traders when exchanging assets through a liquidity pool or decentralized exchange.
Liquidity Tick
A liquidity tick is a discrete price boundary used by concentrated-liquidity AMMs to organize active liquidity.
Liquidity Range
A liquidity range is the price interval within which concentrated liquidity is available to execute swaps.
Active Liquidity Management
Active liquidity management adjusts liquidity positions, price ranges, or allocations over time rather than leaving them static.
Pool Share
Pool share is the percentage ownership or economic claim a liquidity provider has in a DeFi pool.
LP Token
An LP token represents a user's proportional claim on assets deposited into a liquidity pool.
Liquidity Provider (LP)
A liquidity provider is a user or entity that deposits assets into a DeFi pool so trades, loans, or other protocol activity can occur.
Borrowing Pool
A borrowing pool is the available liquidity within a lending system from which eligible borrowers can draw assets.
Lending Pool
A lending pool is a smart-contract pool containing assets supplied for borrowing and earning interest.
Utilization Rate
Utilization rate measures how much of a lending pool's supplied liquidity is currently borrowed.
Collateral Factor
Collateral factor is the percentage of an asset's value that a lending protocol recognizes when calculating borrowing capacity.