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Explore 1,139+ clear, technical, and objective definitions defining the decentralized future.
Health factor is a lending-risk metric showing how safely a borrower's collateral covers their debt relative to liquidation conditions.
Liquidation threshold is the collateral ratio or risk boundary at which a lending position becomes eligible for liquidation.
A liquidation bonus is the discount or extra collateral value awarded to liquidators for repaying risky debt positions.
A debt token is an on-chain accounting token that represents a user's borrowed balance or debt obligation.
An interest-bearing token represents a deposit or claim whose value or balance increases as protocol yield accrues.
A variable borrow rate changes over time according to market utilization, liquidity, and protocol rate rules.
Fixed-rate lending is a DeFi arrangement where borrowing or lending terms use a predetermined rate for a defined period or position.
A lending pool is a smart-contract pool containing assets supplied for borrowing and earning interest.
A borrowing pool is the available liquidity within a lending system from which eligible borrowers can draw assets.
A liquidity provider is a user or entity that deposits assets into a DeFi pool so trades, loans, or other protocol activity can occur.
An LP token represents a user's proportional claim on assets deposited into a liquidity pool.
Pool share is the percentage ownership or economic claim a liquidity provider has in a DeFi pool.
Active liquidity management adjusts liquidity positions, price ranges, or allocations over time rather than leaving them static.
A liquidity range is the price interval within which concentrated liquidity is available to execute swaps.
A liquidity tick is a discrete price boundary used by concentrated-liquidity AMMs to organize active liquidity.
A swap fee is the charge paid by traders when exchanging assets through a liquidity pool or decentralized exchange.
A protocol fee is the portion of transaction, swap, lending, or other fees retained by the protocol or its treasury.
Liquidity mining distributes token incentives to users who supply liquidity or perform other targeted protocol activities.
A vault curator is a person, team, or automated system that selects and manages strategies, markets, or risk parameters for a DeFi vault.
A malicious approval tricks a user into granting token-spending permission to an attacker-controlled contract or address.