AAVE：

Aave is a decentralized finance (DeFi) protocol built on the Ethereum blockchain network. This decentralized application (dApp) allows users to lend, borrow, and earn interest on cryptocurrency assets. Like all decentralized applications, Aave achieves these functions without the need for intermediaries.

The native token of Aave Network is AAVE.

Ankr：
Ankr is a Web3 platform that makes it more convenient to run nodes (used for verifying transactions) on proof of stake (PoS) blockchain.

This protocol eliminates the need for significant hardware investment and advanced technological capabilities, greatly simplifying the process.

The native token of this network is ANKR.

Proof of Stake (PoS): A blockchain consensus mechanism that grants the right to verify transactions by holding and locking cryptocurrencies, thereby maintaining the security and operation of the blockchain.

Nodes: In blockchain networks, nodes are computer devices used to maintain the network, responsible for recording and verifying transactions.

Native Token: A cryptocurrency created on a specific blockchain platform and used for internal transactions and functions within the platform.

Addendum: Ankr also provides API tools that can access a lot of data on the blockchain, and many transaction information can be used to make good strategies

Arbitrage：

In decentralized finance (DeFi), arbitrage refers to the process of buying tokens/cryptocurrencies at a lower price on a decentralized cryptocurrency exchange (DEX), and then quickly selling the same asset at a higher price on another DEX for profit.

The ability of traders to profit from price differences on DEX also helps stabilize cryptocurrency prices, thereby enhancing market trust and liquidity. Arbitrage is the reason why most cryptocurrency prices are relatively consistent across all exchanges, although there may be slight differences.

Decentralized Cryptocurrency Exchange (DEX): Refers to a trading platform that does not require a central regulatory authority, allowing users to directly engage in cryptocurrency trading.

Addendum: Arbitrage in crypto includes arbitrage between different tokens on the same exchange, between different exchanges, and between dex and cex

Arbitrum：
Arbitrarum is a two-layer extension solution designed to address Ethereum's congestion issues by using "transaction aggregation".

The native token of the Arbitrum network is ARB.

Layer-2 Scaling Solution: It is a blockchain scaling technology that improves the efficiency and speed of the main chain by moving transaction processing to a second layer outside of the blockchain.

Addendum: It can be understood as the "acceleration lane" of the Ethereum network, where Ethereum sometimes processes transactions slowly and incurs high fees. Arbitrarum helps solve this problem.

AMM：

Automated Market Maker (AMM) is a smart contract that drives all decentralized cryptocurrency exchanges (DEX) and other decentralized finance (DeFi) protocols.

To become a market maker on AMM, you only need to add two or more cryptocurrencies to the liquidity pool. When traders trade from your pool, you will earn the fees they pay to DEX.

Balancer：
Balancing is an automated market maker (AMM) protocol built on Ethereum that enables users to engage in cryptocurrency trading and create and participate in liquidity pools.

The native token of the balancer network is BAL.

Blockchain：

Blockchain is a digital ledger distributed among all participants in a network. Compared to traditional ledgers, blockchain has many advantages, such as immutability, openness, decentralization, and security. Every transaction on the blockchain is public and must be confirmed by a computer network called miners, who receive cryptocurrency rewards for their work.

Ethereum is the most popular decentralized finance (DeFi) blockchain network.

Bonding Curve：

The Bonding Curve is a mathematical curve used to determine the price of digital assets on decentralized finance (DeFi) platforms. These curves are used to create and manage liquidity pools for specific cryptocurrency pairs.

Bridges：
Bridges enable the transfer of encrypted assets from one blockchain to another, ensuring interoperability in the decentralized finance (DeFi) field.

CeFi：

CeFi (Centralized Finance) refers to a financial model that operates through traditional centralized intermediaries such as banks and stock exchanges.

CeFi contrasts with DeFi (decentralized finance), which does not rely on intermediaries.

Convex Finance：
Convex Finance is a decentralized finance (DeFi) protocol that runs on the Curve Finance exchange. This protocol provides additional DeFi benefits for Curve's liquidity providers and CRV holders. The native token of Convex is CVX.

Ctokens:

Ctokens are related to the Compound protocol. These tokens represent deposited fund positions that can be used as collateral in various liquidity pools or traded with other digital assets.

cold wallet:

Cold Wallet is a kind of wallet for offline management of digital assets with high security because it is not connected to the Internet, reducing the risk of being attacked by hackers.

Paper Wallets: A form of cold wallet that prints public and private keys on paper, typically used for long-term secure storage of digital assets.

USB wallet, also known as hardware wallet: a cold wallet that stores cryptocurrency private keys through a USB device, such as Ledger.

crypto wallet：

A crypto wallet, also known as a digital wallet, is a software program, hardware device, or simple paper that stores a user's private key.

Cryptocurrency wallets enable users to securely store, manage, and trade digital assets, decentralized finance (DeFi), and non fungible tokens (NFTs).

An encrypted wallet can be a Custodial Wallet or a Self Custody Wallet.

Addendum: The cold wallet mentioned above can be regarded as a small category of encrypted wallets, and basically all wallets mentioned later are included in encrypted wallets

Compound Finance：

Compound Finance is a decentralized finance (DeFi) lending protocol that allows users to lend or borrow cryptocurrencies without the need for a centralized intermediary.

The native token of Compound is COMP.

Curve Finance：

Curve Finance is a decentralized cryptocurrency exchange (DEX) that operates as an automated market maker (AMM), similar to Uniswap.

The native token of Curve Finance is CRV.

custodial crypto wallet：
Custodial Crypto Wallet is a type of encrypted wallet controlled by a centralized entity (such as Coinbase) that holds user private keys.

Overall, the security of custodial wallets is usually lower than that of self managed wallets, as self managed wallets allow users to directly access and control their private keys.

DAO：

DAO (decentralized autonomous organization) is an organization that operates without intermediaries through smart contracts.

In DAO, decisions are made through a decentralized voting system, where each member's voting rights are proportional to their shareholding in the organization.

digital signatures：

In the field of encryption, digital signatures are encryption tools used for message authentication that bind encrypted users to digital data.

The process of creating a digital signature includes hashing the data, encrypting the data with a private key, and verifying the data with the corresponding public key.

dYdX：

DYdX is a decentralized finance (DeFi) protocol focused on perpetual contract trading. Perpetual contracts are a type of cryptocurrency derivative that allows traders to speculate on the price of the underlying asset without actually holding it.

DYDX is the native token of this DeFi protocol.

DeFi：

DeFi， Decentralized finance is a blockchain based financial system that allows users to become equity holders, borrowers, lenders, traders, and even market makers without the need for intermediaries.

DeFi protocols rely on smart contracts for operation.

decentralized oracle：
Decentralized Oracle is a system that provides external data to a blockchain network. The oracle serves as a bridge between the off chain world and the on chain network, enabling smart contracts to access real-world data. Real time stock quotes are an example of the value added by a oracle.

DEX (Decentralized Exchange) is a cryptocurrency exchange that operates based on a peer-to-peer system (or one address moving to another), and therefore does not require any intermediaries.

All users who use self managed wallets need to connect to DEX in order to exchange cryptocurrencies. Uniswap is the most popular decentralized exchange.

EigenLayer：

EigenLayer is a re staking protocol that allows users to increase staking rewards by reusing their staked ETH to secure other services outside of the main network.

ERC-20 tokens：
ERC-20 Tokens are alternative tokens related to the Ethereum blockchain network. All ERC-20 tokens are interoperable, which means they can trade freely with each other.

Ethereum：

The Ethereum blockchain is currently the most powerful and popular DeFi blockchain. Unlike Bitcoin, Ethereum supports the storage of smart contracts, which form the foundation of Web3.

Even Layer 2 solutions such as Polygon and Arbitrarum rely on the Ethereum ecosystem.

Fair launch：

Fair Launch refers to a transparent method of issuing cryptocurrencies (such as initial coin offerings (ICOs)) that ensures equal opportunities for all market participants to participate.

Fiat currency：

Fiat Currency refers to any currency issued by a government. For example, the US dollar is a legal tender. Legal tender is usually only supported by the government's reputation.

Financial Primitive：

Primitives are the cornerstone and core of DeFi. Basic components typically perform a specific function, such as hash processing. They are implemented through smart contracts.

Flash Loans：
In decentralized finance (DeFi), Flash Loans refer to a multi-step transaction where a user applies for a unsecured loan and immediately repays the same loan. Flash loans are usually used to take advantage of arbitrage opportunities.

flash swap：

In the field of cryptocurrency, Flash Swap is a trading type that allows traders to borrow any cryptocurrency in a short amount of time. Lightning exchange is becoming increasingly popular because it does not require any collateral.

Similar to Lightning Loan, Lightning Exchange is completed in the same transaction. These exchanges help to increase liquidity in the cryptocurrency ecosystem.

forced liquidation:

In decentralized finance (DeFi), forced liquidation occurs when there is insufficient collateral for loans or any type of transaction.

These settlements are executed by 'Keepers' and are typically common in high leverage trading.

game theory:

In decentralized finance (DeFi), game theory refers to the theory of increasing returns by studying the behavior of participants in the cryptocurrency market.

The two categories that game theory researchers are particularly concerned about are incentive mechanisms and market coordination.

Gas (Ethereum Network Fees)：

On the Ethereum network, 'gas' refers to the fee that users must pay to validators to verify their transactions and add them to the blockchain. The fuel cost is priced in "gwei" units.

Speaking in person: As it is a decentralized transaction, in order to be transparent, when a transaction occurs, someone needs to verify and confirm it before adding it to the entire blockchain. Gas can be simply seen as a fee paid to the verifier who helps you verify it. Remember the following formula, which is the handling fee you should pay:
fee = GasLimit * Gas(GasPrice) * GasTokenPrice

GMX：

GMX is a decentralized finance (DeFi) protocol (decentralized exchange DEX) focused on perpetual trading.

The native token of this network is GMX.

governance token：
Governance Token: A token used to participate in project governance, where holders can influence project decisions and development direction through voting, similar to the voting rights of shareholders in corporate governance.

GWEI：
GWEI is a unit of measurement for Ethereum (ETH) - equal to one billionth of 1 ETH.

The fuel cost (network fee) of Ethereum is priced in GWEI units.

HD Wallets：

Hierarchical Deterministic Wallets (HD Wallets) are a type of cryptocurrency wallet that can derive multiple different addresses from a seed phrase, making it convenient for users to manage multiple cryptocurrency addresses without having to remember the private key of each address.

hot wallet：

Hot Wallet is a self hosted cryptocurrency wallet that is always connected to the Internet (so it is always at risk of being attacked by hackers!).

Software wallets, such as mobile wallets and desktop wallets, are both hot wallets.

impermanent loss：
In decentralized finance (DeFi), Impermanent Loss is a risk faced by liquidity pool participants. The value of cryptocurrencies pledged by liquidity pool providers in the pool will fluctuate as traders buy and sell from the pool.

Impermanent losses can be seen as opportunity costs - the benefits that liquidity providers could have gained if they simply held these cryptocurrencies directly without participating in the liquidity pool.

Instadapp：

Instadapp is a decentralized finance (DeFi) decentralized application (dApp) that allows users to manage all their DeFi investments in one interface.

INST is the native token of this network.

Keepers：

Keepers are programs that ensure the proper functioning of protocols. For example, if there is insufficient collateral in a decentralized lending application (dApp), the holder may trigger automatic liquidation.

KYC：

KYC (know your customer) refers to "knowing your customer". KYC is common in traditional finance, but has not yet been widely implemented in decentralized finance (DeFi) and self custodial products.

Lending Aggregator：
Lending Aggregators: Integrating interest rate information from multiple lending platforms, providing a centralized interface to help users choose the best lending rate.

Lending Protocol：
Lending protocols provide decentralized lending services and are very important in the DeFi field.

Compound and Aave are two popular lending protocols.

Layer 2 ：

Layer 2 Networks rely on existing blockchains (primarily Ethereum) for verification.

The second layer network uses technologies such as sharding to significantly reduce network costs and increase transaction throughput.

Polygon, Optimism, and Arbitrarum are some popular second layer solutions.

Layer 2 Networks: A technology layer built on top of existing blockchains that enhances the performance of the main chain through various optimization methods.

Sharding: a technology that divides blockchain data into smaller parts to improve the processing power of the network

Lido：

Lido is a peer-to-peer protocol for decentralized finance (DeFi) cryptocurrency staking. In 2023, Lido will be the most popular decentralized application (dApp) currently available.

Lido provides staking services for Ethereum (ETH), Polygon (MATIC), and Solana (SOL).

Lightning Network：

Lightning Network is a second layer protocol based on Bitcoin. The Lightning Network is driven by smart contracts to help expand the processing power of Bitcoin.

BRC-20 token runs on this network.

liquidity：

In cryptocurrency, liquidity refers to the ease with which a digital asset can be bought and sold without significantly affecting its price.

When exchanging cryptocurrencies on decentralized exchanges (DEX), you will want to ensure that bid ask spreads are small, as this means high liquidity.

Liquidity pools:

Liquidity pools are the lifeline of all decentralized cryptocurrency exchanges, as they allow for the buying and selling of cryptocurrencies. Anyone can become a market maker by depositing two (or more) cryptocurrencies into a liquidity pool and joining it.

As traders buy and sell from these pools, liquidity providers will earn a portion of the trading fees as a reward.

LP tokens:

LP tokens (liquidity provider tokens) are tokens issued by decentralized exchanges (DEXs) to liquidity providers after pledging cryptocurrencies into a liquidity pool.

Liquidity providers (LPs) can later redeem these tokens to retrieve their pledged portion in the liquidity pool (plus the fees they earn!).

In addition, LP tokens can also be used as collateral in many different DeFi protocols.

MakerDAO：

MakerDAO is a decentralized financial protocol for collateralized debt positions (CDPs). Its working principle is as follows:

Users connect their self hosted wallet to MakerDAO

Users choose cryptocurrency as collateral

MakerDAO issues stablecoin DAI with a collateral ratio of over 150%

Users can freely use these DAIs

Users redeem their original cryptocurrency with DAI

• Collateral Bond Warehouse (CDP): A mechanism in DeFi protocols that generates stablecoins or loans by pledging encrypted assets.

DAI: A stablecoin issued by MakerDAO pegged to the US dollar, typically generated through over collateralization.

MetaMask：

MetaMask is the most widely used self managed cryptocurrency wallet worldwide.

Self Custody Wallet: A wallet where users manage their private keys independently, without relying on third-party institutions to hold funds, providing higher autonomy and security.

mining pool：
In blockchain, a mining pool is a group of miners or validators who pool their computing/hashing abilities together to increase the chances of validating the next block and receiving corresponding rewards.
Currently, F2Pool is the largest mining pool for Bitcoin.

Money legos：

A metaphor used to describe the modular combination of different decentralized finance (DeFi) protocols to create more complex and feature rich financial products or services.

multisig (multi-signature) wallet：

Multisig wallet is a more secure cryptocurrency wallet that requires multiple key holders to jointly sign in order to perform certain operations, commonly used to enhance the security of encrypted assets.

NFT：

Non fungible tokens (NFTs) represent a unique digital asset, such as digital art. Most NFTs are stored on the Ethereum blockchain, and NFTs on Ethereum are referred to as ERC-721 tokens.

Optimistic rollups：

Optimistic Rollups is a second layer extension solution for Ethereum, which improves the throughput and efficiency of the blockchain by moving transaction data and computation processing off chain, while retaining a simplified proof mechanism on chain.

According to Ethereum.org, optimistic aggregation involves' moving computation and state storage off chain '.

Arbitrarum and Optimism are second level solutions based on optimistic aggregation.

PancakeSwap：
PancakeSwap is the most popular decentralized cryptocurrency exchange on Binance Smart Chain.
CAKE is the native token of PancakeSwap.

Perpetual：

In decentralized finance (DeFi), perpetual contracts are derivatives that allow users to speculate on the price of cryptocurrencies without actually owning the underlying cryptocurrency.

Permanent contracts are similar to traditional futures contracts, but unlike futures contracts, permanent contracts do not have an expiration date.

Addendum: Perpetual contracts are not common in traditional finance, meaning futures contracts that do not expire. Its core design is that in a bull market, contract bulls will pay a fee to bears at regular intervals, which we call the funding rate; Switching payment direction in a bear market

private key：

In cryptocurrency, a private key is a long string of digits that allows direct access to the cryptocurrency on the blockchain and serves as the core credential for protecting user assets.

The private key is used together with the public key through encryption and decryption to help maintain the confidentiality of the private key.

Polygon：

Polygon is a second layer extension solution based on Ethereum, aimed at promoting the development of Ethereum compatible projects faster and more efficiently.

MATIC is Polygon's native token.

rebase：

In cryptocurrency, rebasing is a method used by token issuers to ensure price stability. This operation is achieved by adjusting the supply of tokens.

If the trading price of a certain token is higher than the expected range, more tokens can be issued - somewhat similar to "printing money".

Restaking：

Restaking is a method used for passive income in decentralized finance (DeFi), allowing Ethereum stakers to use their staked ETH to secure other protocols and earn additional rewards without the need to release the pledge.

This concept was introduced by EigenLayer, which is the largest re staking protocol in DeFi.

Rocket Pool：

Rocket Pool is one of the largest existing cryptocurrency staking protocols. Rocket Pool only supports staking of Ethereum (ETH).

RPL is the native token of Rocket Pool.

RWA (real world assets) ：

The RWA (Real World Assets) protocol enables decentralized finance (DeFi) users to tokenize traditional assets such as stocks or real estate as well as encrypted assets.

Popular DeFi RWA protocols include Maker RWA, Ondo Finance, and Solv Protocol.

self-custody wallet：

Self Custody Wallet is a cryptocurrency wallet that allows its owners to directly control their private keys. This control enables users to protect their encrypted assets and connect to decentralized applications (dApps).

Tastycrypto wallet is a self storage wallet.

Sidechain：

In blockchain technology, a sidechain refers to a blockchain network that operates within an existing blockchain network.

Side chains can leverage the capabilities of larger blockchains, but offer lower fees and higher throughput than the main chain. Most sidechains are built around Ethereum because Ethereum's gas costs can be high.

Polygon is an example of a side chain.

smart contract：

A smart contract is code stored on a public blockchain that automatically executes when certain conditions are met.

All DeFi protocols are driven by smart contracts.

Speaking in human terms: A smart contract is a piece of code, similar to if in the code else....， It is stored on the blockchain. When specific conditions are met, it will automatically execute without the need for intermediaries.

Compared to traditional financial contracts, smart contracts eliminate intermediaries, execute faster and more transparently, and reduce costs and the risk of human error.

stablecoin：

Stablecoin is a cryptocurrency that links its price to another asset in a 1:1 ratio. The prices of most stablecoins are pegged to the US dollar. Many stablecoins (but not all) have reserves as collateral.

The types of stablecoins include:

Fiat backed stablecoins supported by fiat currency

Cryptocurrency backed stablecoins supported by cryptocurrencies

Algorithmic stablecoins

• Commodity backed stablecoins supported by commodities

Stablecoins are an important component of the DeFi ecosystem as they provide a low volatility safe haven.

Speaking in person: You can trade or store assets with stablecoins, just like buying or saving money with euros, Thai baht, Singapore dollars, etc. in the real world. Compared to other cryptocurrencies, stablecoins make people feel more 'secure'.

SushiSwap：

SushiSwap is a decentralized cryptocurrency exchange (DEX) based on Ethereum. Like all DEX, any cryptocurrency participant can become a liquidity provider for SushiSwap.

The native token of SushiSwap is SWAP.

Synthetic Assets：

Synthetic assets are financial instruments used to replicate ownership of different asset classes. In the field of cryptocurrency, synthetic tokens can be used to replicate the prices of various assets, including stocks and gold.

Crypto synthetic assets are created through a minting process.

Synthetix：

Synthetix is a decentralized financial protocol that focuses on minting synthetic tokens (see above).

These tokens are called "Synths". Synthetic tokens can track the prices of various real-world assets, such as stocks.

The native token of Synthetix is SNX.

Testnets：

Testnets is a blockchain network designed specifically for developers to test protocols. Test nets are typically used to test the integrity of smart contracts before protocol release. Common testing networks include:

• Goerli

• Rinkeby

• Ropsten

TradFi：

TradFi is an abbreviation for "Traditional Finance", referring to all traditional, centralized financial institutions such as banks and insurance companies.

TVL：

In decentralized finance (DeFi), Total Locked Volume (TVL) refers to the total amount of cryptocurrency locked in a project.

underlying assets：

In decentralized finance (DeFi), underlying assets are used to describe the assets on which the prices of derivatives such as perpetual contracts, synthetic assets, and options depend.

Uniswap：

Uniswap is currently the largest decentralized cryptocurrency exchange (DEX).

Owners of self custodial wallets can connect their wallets to Uniswap for cryptocurrency exchange through Uniswap's liquidity pool.

Utility token：

Utility Tokens refer to any cryptocurrency token that grants holders the right to perform specific functions in decentralized finance (DeFi) protocols.

This is in contrast to Governance Tokens, which grant holders the right to vote on changes to the protocol.

Validator：

Validators perform the necessary calculations to validate and add Proof of Stake (PoS) transactions to the blockchain. The verifier receives cryptocurrency rewards for their work.

Whale：

Whales refer to participants who hold a very large amount of cryptocurrency.

For example, if a Bitcoin whale sells its Bitcoin holdings all at once, it will cause the value of Bitcoin to decrease.

Addendum: For example, BlackRock, one of the world's largest asset management companies, is also one of the "whales", and the impact of July's large-scale selling of JumpTrading on ETH.

Wrapped Tokens：

Wrapped Tokens allow cryptocurrencies that originated on one blockchain to be traded on another blockchain that does not support that cryptocurrency.

For example, Parcel Bitcoin (wBTC) is an ERC-20 token that tracks the price of Bitcoin on the Ethereum network.

wrapped ETH：

All tokens in the Ethereum ecosystem are ERC-20 tokens, so they are interoperable.

Ironically, Ethereum (ETH), as the native currency of Ethereum, is not an ERC-20 token and therefore does not have interoperability. To address this issue, a package of Ethereum (wETH) tokens was created.

Yearn Finance：

Yearn Finance is a revenue aggregator based on the Ethereum blockchain. Yearn makes it easier for income generating farmers to earn interest by pledging cryptocurrency.

Yearn's native token is YFI.

Yield Farmers: Refers to users in DeFi who earn interest and rewards by staking or borrowing cryptocurrencies.

yield aggregator：
A protocol that automatically optimizes returns, helping users maximize their investment returns by depositing funds into different revenue generating platforms.

Zero-Knowledge Rollup：
A Layer 2 expansion solution that enhances the transaction processing capability of blockchain by transferring computation and data storage off chain. Zero knowledge convolution compresses transaction data and state changes into a validity proof, and then submits these proofs and compressed data to smart contracts on the main chain.