Glossary

This section is designed as a quick reference guide to help you understand some of the common DeFi terms used throughout Defi App.

DeFi Terms & Concepts (A-Z)

To quickly look up a term, use the table of contents on the right of the page or search with Ctrl/ Cmd + F.

Account Abstraction

The concept of managing wallets using simplified methods like an email and passkey instead of traditional private keys.

AMM (Automated Market Maker)

A type of decentralized exchange (DEX) protocol that relies on liquidity pools to allow users to swap tokens without the need for an order book or centralized party.

Bridging

The process of transferring tokens or data from one blockchain to another, often necessary for cross-chain compatibility.

Cross-Chain Swap

The process of exchanging tokens between different blockchain networks (e.g., Ethereum to Solana) without manual bridging.

Custodial Wallet

A wallet where a third party, such as an exchange, holds the private keys on behalf of the user, giving them control over your funds.

dApp (Decentralized Application)

An application that operates on a blockchain, utilizing smart contracts to run without a central authority.

Decentralized Exchange (DEX)

A platform for trading cryptocurrencies without intermediaries, where users maintain control of their funds throughout the transaction.

EVM (Ethereum Virtual Machine)

The environment in which all Ethereum (and compatible chain) smart contracts run, allowing decentralized applications to function consistently.

Fiat

Government-issued currency like USD, EUR, or JPY that has value because of government backing, as opposed to cryptocurrencies.

Gas Fees

The costs required to conduct transactions on the blockchain, managed automatically by Defi App to simplify the user experience.

Liquidity Pool

A pool of tokens locked in a smart contract that provides liquidity for decentralized trading, lending, or other activities.

Non-Custodial Wallet

A wallet where only the user has control of the private keys, ensuring complete control over their funds without relying on a third party.

Onramp/Offramp

The process of converting fiat money to crypto (onramp) or crypto to fiat (offramp). Defi App simplifies both processes for ease of use.

Private Key

A secret number used to access and manage your cryptocurrency. If someone else has your private key, they have control of your funds.

Slippage

The difference between the expected price of a trade and the actual price at which the trade is executed, often due to volatility or low liquidity.

Solana

A high-speed, low-cost blockchain supported by Defi App for cross-chain functionality alongside Ethereum-based networks.

Stablecoin

A type of cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency like the USD.

Swap Aggregation

The concept of combining swap options from different decentralized exchanges to provide users with the best rates available.

Wallet Aggregation

The concept of managing multiple wallets from different blockchains within a single interface, simplifying the user experience.

Yield Farming

The process of earning rewards, typically in the form of tokens, by providing liquidity or staking assets in a DeFi protocol.

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Need More Information?

If there's any term you're still unsure about, read through the documentation on that topic for more in-depth explanations, or contact our support team for additional help.