Glossary

The forced sale of collateral assets by a lending protocol when a borrower’s collateral value falls below the required minimum.

A method of staking cryptocurrency while receiving a liquid token representing the staked position that can still be used in DeFi.

A governance system allowing token holders to vote directly or delegate to expert representatives.

An order to buy or sell a cryptocurrency at a specific price or better, only executed when the market reaches that price.

A Layer 2 payment protocol built on top of Bitcoin that enables near-instant, low-fee micropayments through off-chain payment channels.

A blockchain node that downloads only block headers rather than full blocks, relying on full nodes for transaction data.

A cryptocurrency token that provides built-in leveraged exposure to an underlying asset without margin requirements.

The multiple of an investor’s own capital used in a leveraged cryptocurrency trade.

The use of borrowed capital to increase the potential return of a cryptocurrency investment, amplifying both gains and losses.

A DeFi platform that matches cryptocurrency lenders with borrowers and manages interest rates algorithmically.