DeFi
Automated Market Maker
Automated Market Maker is a DEX design that prices trades with pool formulas instead of a classic order book.
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DeFi
Decentralized finance pools, swaps, lending, and smart-contract risk — not yield advice.
27 published definitions in this topic.
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DeFi
Bad Debt
Bad Debt is unbacked liabilities left after liquidations fail to cover loans.
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Collateral Factor
Collateral Factor is the percentage of collateral value that can be borrowed against.
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Collateral Liquidation
Collateral Liquidation is selling collateral to repay an undercollateralized loan.
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Concentrated Liquidity
Concentrated Liquidity is LP positions active only within chosen price ranges.
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Constant Product Market Maker
Constant Product Market Maker is an AMM using an x*y=k style invariant for two-asset pools.
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Decentralized Finance
Decentralized finance (DeFi) refers to financial-like services delivered via smart contracts instead of a single traditional intermediary UI.
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DeFi Frontend Risk
DeFi Frontend Risk is risk that a website UI is hijacked even if contracts are unchanged.
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Exit Liquidity
Exit Liquidity is whether buyers remain when you try to sell — thin exit liquidity traps holders.
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Governance Capture Risk
Governance Capture Risk is risk that voting power concentrates and changes protocol rules against users.
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Health Factor
Health Factor is a risk ratio indicating how close a lending position is to liquidation.
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Impermanent Loss
Impermanent Loss is the opportunity difference LPs can see versus simply holding tokens when prices diverge.
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Interest Rate Model
Interest Rate Model is rules setting borrow and supply rates based on utilization.
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Lending Protocol
Lending Protocol is contracts that allow depositing collateral to borrow other assets.
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Liquidity Mining
Liquidity Mining is earning reward tokens for providing liquidity to a pool.
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Liquidity Pool
Liquidity Pool is a smart-contract reserve of tokens used by AMMs to price swaps.
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Overcollateralization
Overcollateralization is posting collateral worth more than the borrowed amount to buffer price moves.
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Peg Mechanism
Peg Mechanism is designs intended to keep a token near a target price.
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Pool Imbalance
Pool Imbalance is when pool composition skews after large trades or depegs.
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Protocol Fee
Protocol Fee is fees skimmed by a DeFi protocol from swaps, borrows, or performance.
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Protocol Insolvency Risk
Protocol Insolvency Risk is risk that a protocol cannot meet withdrawals after bad debt or exploits.
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Router Exploit
Router Exploit is attacks or malicious routers that misroute swaps or steal approvals.
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Stable Swap Pool
Stable Swap Pool is a pool optimized for similarly priced assets like stablecoins.
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Total Value Locked
Total Value Locked is a metric summing assets deposited in protocols — not a security rating.
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Utilization Rate
Utilization Rate is the share of supplied assets currently borrowed from a pool.
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Vault Strategy
Vault Strategy is an automated contract that allocates deposits into yield strategies.
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Yield Farming
Yield Farming is moving assets across protocols seeking rewards; often high smart-contract and scam risk.
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