Degrees of Satoshi · Learn with evidence
DeFi encyclopedia
Work through swaps, lending, governance, and the assumptions behind financial protocols.
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10 entries
Getting started
Wallet connections, shared applications and the numbers on a dashboard.
- DeFi · ExplanationWhat is DeFi? Financial applications built from smart contractsUnderstand decentralized finance through swaps, loans and vaults, including the contracts, assets and people each application depends on.3 min · 3 sources
- DeFi · ExplanationConnecting a wallet: account access, signatures and approvalsDistinguish a wallet connection from a signature, token allowance and transaction, and understand what disconnecting a website actually changes.3 min · 3 sources
- DeFi · ExplanationDecentralized exchanges: how a token trade reaches settlementSee how decentralized exchanges quote and settle trades, why an interface differs from its contracts, and which limits a swap transaction enforces.3 min · 7 sources
- DeFi · ExplanationAutomated market makers: trading against a programmed inventoryLearn how an automated market maker exchanges pooled inventory, how its curve changes a quote, and why arbitrage and liquidity providers matter.3 min · 3 sources
- DeFi · ExplanationDeFi composability: reusing capabilities and inheriting dependenciesTrace a composed position through tokens, vaults, oracles and borrowing, and see why standards enable integration without certifying the combined system.3 min · 6 sources
- DeFi · ExplanationWrapped assets: an interface change or a separate backing claimCompare native-asset wrappers, receipt wrappers and cross-chain representations, and see why a familiar ticker does not identify the backing mechanism.3 min · 4 sources
- DeFi · ExplanationBlockchain bridges: verifying an event across separate systemsFollow lock-and-mint, burn-and-mint and liquidity-based transfers, including message verification, finality and the dependencies behind bridged tokens.3 min · 5 sources
- DeFi · ExplanationTotal value locked: what TVL measures and what it missesInterpret total value locked using a provider’s scope, asset prices and double-counting rules, rather than treating TVL as revenue or a safety certificate.3 min · 1 sources
- DeFi · ExplanationMarket cap versus fully diluted valuationCompare circulating market capitalization with fully diluted valuation and understand the supply assumptions hidden behind each token metric.3 min · 3 sources
- DeFi · ExplanationToken unlocks and vesting: when restricted supply becomes availableRead a token vesting schedule by distinguishing allocation, claimability, circulating supply and an actual market sale.3 min · 2 sources
16 entries
Swaps and execution
Quotes, costs, routing and why a trade can fail.
- DeFi · ExplanationSlippage and price impact: two reasons a swap rate can differSeparate the price change caused by your trade from execution changes after quoting, and see how minimum output relates to slippage tolerance.3 min · 4 sources
- DeFi · ExplanationSwap routing and aggregators: selecting a path through liquidityLearn how swap routes cross or split between pools, why gas can change the best route, and what an aggregator quote does and does not promise.3 min · 3 sources
- DeFi · ExplanationDeFi arbitrage: why prices converge and differences can remainUnderstand how trades across markets can narrow price differences, why displayed spreads are not profits, and how atomic execution changes risk.3 min · 4 sources
- DeFi · ExplanationMaximal extractable value: the consequences of transaction orderExplore how transaction inclusion and ordering affect DeFi outcomes, including arbitrage, liquidation competition and sandwich trades.3 min · 3 sources
- DeFi · ExplanationSandwich attacks: trading around someone else’s swapUnderstand how transaction ordering around a swap can worsen a trader’s execution, and distinguish minimum-output protection from a guarantee against all MEV.3 min · 4 sources
- DeFi · ExplanationPrivate transaction submission: hiding an order from which audience?Understand what changes when a transaction is sent to a private relay or builder path, including visibility, inclusion policy and fallback assumptions.3 min · 3 sources
- DeFi · ExplanationOn-chain limit orders: price conditions and execution dependenciesUnderstand a crypto limit order as conditional trade authorization, including signed orders, execution incentives, cancellation and the difference from a guaranteed fill.3 min · 3 sources
- DeFi · ExplanationFee-on-transfer tokens: when the received amount is smallerUnderstand token transfer deductions and why quoted or requested amounts can differ from what an integrating contract actually receives.3 min · 3 sources
- DeFi · ExplanationExact-input and exact-output swaps: which amount is fixed?Compare a fixed spending amount with a fixed receiving amount, including the transaction bounds and treatment of unused input.3 min · 1 sources
- DeFi · ExplanationDEX swap costs: separating pool fees, gas and interface chargesSeparate the costs inside a DEX quote from the network fee and any service charge, without counting the same pool fee twice.3 min · 5 sources
- DeFi · ExplanationSwap deadlines: why an old quote can stop executingUnderstand why a swap can fail after waiting, and why changing the deadline does not repair an outdated price limit.3 min · 3 sources
- DeFi · ExplanationInsufficient DEX liquidity: no route, poor quote or unavailable inventory?Diagnose missing or weak swap routes by distinguishing supported assets, active inventory and executable size.3 min · 4 sources
- DeFi · ExplanationIdentifying a DEX pool: token pair, network, fee and contractIdentify one concrete pool and avoid confusing similar tickers, networks or fee tiers with the same market.3 min · 4 sources
- DeFi · ExplanationBatch-auction swaps: how orders can settle togetherFollow matching orders and external liquidity through a CoW-style batch without assuming every order receives a guaranteed fill.3 min · 2 sources
- DeFi · ExplanationIntent-based swaps: authorizing an outcome for solvers to executeUnderstand the outcome a signed swap intent authorizes and the work delegated to a solver or filler.3 min · 3 sources
- DeFi · ExplanationDutch-auction swap orders: a price that changes until someone fillsRead a time-dependent swap price and understand why the final fill depends on competition and execution timing.3 min · 1 sources
14 entries
Liquidity and pool positions
Pool arithmetic, deposited inventory, fees and withdrawals.
- DeFi · ExplanationConstant-product pools: deriving the output from x times yWork through a constant-product swap with and without fees, distinguish effective input from reserves, and understand integer rounding.3 min · 3 sources
- DeFi · ExplanationLiquidity pools: shared inventory with different accounting rulesUnderstand what a liquidity pool holds, how a provider’s claim differs from the original deposit, and why pool size does not guarantee withdrawal.3 min · 4 sources
- DeFi · ExplanationConcentrated liquidity: providing inventory inside a price rangeLearn how a Uniswap v3 liquidity range becomes active or inactive, changes its token composition, and trades capital efficiency for narrower coverage.3 min · 2 sources
- DeFi · ExplanationLiquidity provider positions: what an LP token or NFT representsCompare fungible Uniswap v2 pool shares with individual v3 positions, including inventory claims, accumulated fees and the effect of transfers.3 min · 4 sources
- DeFi · ExplanationImpermanent loss: comparing pool inventory with simply holdingCalculate the difference between holding two assets and providing full-range constant-product liquidity, with explicit fees and model limitations.3 min · 3 sources
- DeFi · ExplanationUniswap v2 and v3: full-range versus concentrated liquidityCompare Uniswap v2 full-range liquidity with v3 concentrated positions, including capital placement, fee accounting and time-weighted price oracles.3 min · 2 sources
- DeFi · ExplanationUniswap v4 hooks: custom pool behavior and extra dependenciesUnderstand optional Uniswap v4 hook contracts, their permissions and why a pool’s custom behavior must be examined alongside the core protocol.3 min · 1 sources
- DeFi · ExplanationCollecting LP fees: claiming earnings versus increasing a positionDistinguish uncollected Uniswap v3 fees from active liquidity, and understand the extra work needed for reinvestment.3 min · 5 sources
- DeFi · ExplanationAn out-of-range liquidity position: what changes and what remains?Understand a concentrated position after price leaves its interval, including single-asset inventory, fee earning and re-entry.3 min · 4 sources
- DeFi · ExplanationRemoving liquidity versus selling tokens: different exit actionsFollow an LP exit from decreased liquidity to received tokens and, only if chosen, a later sale.3 min · 5 sources
- DeFi · ExplanationLP break-even fees: when trading revenue covers the holding shortfallCalculate the earnings required to match a holding benchmark, keeping fees and other cash flows from being counted twice.3 min · 3 sources
- DeFi · ExplanationWeighted liquidity pools: why every AMM is not fifty-fiftyUnderstand how unequal pool weights change inventory and spot-price calculations without turning a pool into a guaranteed portfolio.3 min · 2 sources
- DeFi · ExplanationStableSwap pools: low slippage near balance and risk away from itUnderstand the curve behind low-slippage stable-asset swaps and why that curve does not guarantee a peg or safe withdrawal.3 min · 1 sources
- DeFi · ExplanationSingle-sided liquidity deposits: why adding one token can have a costExplain why adding only one pool asset differs from a proportional deposit, even when the interface uses a single action.3 min · 2 sources
25 entries
Lending and collateral
Follow supplied assets, debt, collateral limits and repayments.
- DeFi · ExplanationDeFi lending pools: supply claims, debt and available liquidityFollow a pooled loan from deposit to repayment, distinguish interest-bearing receipts from debt, and understand collateral and withdrawal limits.3 min · 3 sources
- DeFi · ExplanationUtilization and borrowing rates: pricing a pool’s available fundsCalculate a simple utilization ratio, see why borrowing rates can steepen near full usage, and distinguish annualized rates from realized yield.3 min · 3 sources
- DeFi · ExplanationCollateral and health factors: measuring a loan against its limitsCalculate an Aave-style health factor, distinguish borrowing limits from liquidation thresholds, and see how prices or interest can change a position.3 min · 3 sources
- DeFi · ExplanationDeFi liquidations: exchanging debt repayment for collateralTrace a collateralized loan liquidation, separate eligibility from actual execution, and understand bonuses, close limits and residual bad debt.3 min · 3 sources
- DeFi · ExplanationFlash loans: borrowing that must settle inside one transactionUnderstand a flash loan’s callback and repayment condition, why it does not provide lasting unsecured cash, and how debt-opening variants differ.3 min · 3 sources
- DeFi · ExplanationLending interest indexes: accruing balances without daily transfersUnderstand how lending protocols use cumulative indexes to update supply and debt balances without sending a separate transaction to every account each second.3 min · 3 sources
- DeFi · ExplanationAave aTokens: the receipt for a supplied assetUnderstand standard Aave aTokens as supply-position accounting, including indexed balances, transfer constraints and the difference between a balance and immediate withdrawal liquidity.3 min · 3 sources
- DeFi · ExplanationVariable debt tokens: tracking a borrower’s growing obligationUnderstand Aave variable-debt tokens as non-transferable borrowing records whose balances include accrued interest, rather than tradeable yield assets.3 min · 5 sources
- DeFi · ExplanationIsolated lending markets: which risks are actually separated?Distinguish a fully separate lending market from Aave’s isolation mode and understand which risks a restricted collateral configuration can and cannot contain.3 min · 4 sources
- DeFi · ExplanationSupply caps: limiting deposits into a lending reserveUnderstand a lending reserve’s supply cap as a limit on additional deposits and distinguish it from available withdrawal liquidity or a guarantee against loss.3 min · 2 sources
- DeFi · ExplanationBorrow caps: limiting debt without guaranteeing liquidityRead a lending reserve’s borrow cap alongside available liquidity and account collateral, without confusing a market-wide limit with a personal credit limit.3 min · 4 sources
- DeFi · ExplanationLTV and liquidation threshold: two different collateral limitsCompare a lending position’s borrowing limit with its liquidation boundary using a clear collateral example and market-specific assumptions.3 min · 4 sources
- DeFi · ExplanationLiquidation bonuses: who receives the discount?Understand the incentive paid to a DeFi liquidator and calculate how it affects collateral removed, without assuming every liquidation restores a position to safety.3 min · 4 sources
- DeFi · ExplanationWithdrawing lending supply: liquidity, collateral and transaction limitsDiagnose why a lending balance can exceed the amount immediately available to withdraw.3 min · 4 sources
- DeFi · ExplanationTurning collateral on or off: supply balance is not borrowing powerSeparate supplying an asset from enabling it as borrowing collateral, and understand why disabling it can be blocked.3 min · 4 sources
- DeFi · ExplanationRepaying a DeFi loan: debt asset, accrued interest and the final balanceFollow a normal lending repayment, including token permissions, interest accrual and checking that the debt actually reaches zero.3 min · 4 sources
- DeFi · ExplanationRepaying with collateral: the swap inside the repaymentUnderstand how a lending adapter sells supplied collateral to reduce debt, and why both sides of the position must be measured.3 min · 3 sources
- DeFi · ExplanationCollateral swaps: replacing backing while keeping a loan openExplain replacing the asset backing a loan and why equal market value can still produce a different borrowing risk.3 min · 4 sources
- DeFi · ExplanationDeFi debt refinancing: changing a debt asset or lending marketUnderstand changing a loan’s debt asset, including swap costs and the new price exposure created by refinancing.3 min · 3 sources
- DeFi · ExplanationAave efficiency mode: correlated assets and a narrower risk assumptionUnderstand Aave’s category-specific collateral settings and why higher borrowing capacity still depends on asset relationships.3 min · 2 sources
- DeFi · ExplanationCollateral looping: gross exposure hidden inside repeated depositsSee how repeated borrowing and re-supplying grows gross exposure without creating an equal amount of new net equity.3 min · 4 sources
- DeFi · ExplanationLending liquidity versus solvency: can assets be withdrawn or recovered?Distinguish unavailable cash from an asset shortfall when a lending withdrawal fails.3 min · 4 sources
- DeFi · ExplanationBad debt socialization: how a lending loss reaches suppliersUnderstand how unrecoverable lending losses can reduce depositor claims, including the timing of recognition.3 min · 2 sources
- DeFi · ExplanationFixed and variable DeFi borrowing: which risk does a fixed rate remove?Compare rates that change over time with fixed-term obligations, without treating fixed interest as fixed total risk.3 min · 2 sources
- DeFi · ExplanationDoes supplied collateral earn interest? Read the market accountingFind out whether collateral earns lending interest, retains its own token yield, or does neither in a particular market.3 min · 5 sources
16 entries
Yield, staking and vaults
Where returns come from, how shares work and what can change.
- DeFi · ExplanationLiquid staking: a transferable claim on a staking arrangementDistinguish a liquid staking token from native ETH, compare rebasing and exchange-rate accounting, and follow the difference between selling and redeeming.3 min · 3 sources
- DeFi · ExplanationYield vaults: shares, strategies and the meaning of redemptionRead a yield vault as an asset-to-share accounting system with a strategy, including preview limits, fees, rounding and inherited dependencies.3 min · 2 sources
- DeFi · ExplanationIncentives and earned fees: identifying where a yield comes fromSeparate trading fees, borrower interest and reward-token subsidies, then compare their units, duration and relationship to a position’s total return.3 min · 4 sources
- DeFi · ExplanationAPR versus APY: how compounding changes a displayed rateCompare a simple annualized rate with a compounded annual yield, using explicit assumptions about reinvestment, variable rates, fees and reward-token prices.3 min · 5 sources
- DeFi · ExplanationProjected and realized yield: measuring what actually happenedSeparate a displayed yield estimate from an actual holding-period outcome, including reinvestment, reward prices, fees and cash flows.3 min · 5 sources
- DeFi · ExplanationToken emissions: rewards, dilution and the unit of accountUnderstand how token rewards can change a holder’s share of supply and why newly distributed incentives are different from externally earned fees.3 min · 3 sources
- DeFi · ExplanationRebasing tokens: balances can change without a transferUnderstand balances that change through rebasing, distinguish token units from ownership share and examine integration-specific accounting risks.3 min · 3 sources
- DeFi · ExplanationWrapped staked ether: shares instead of a rebasing balanceUnderstand Lido wstETH as a non-rebasing representation of stETH, including conversion rates, market prices and separate withdrawal steps.3 min · 2 sources
- DeFi · ExplanationRestaking: additional services and additional slashing conditionsUnderstand restaking through the pinned EigenLayer v1.5.0 architecture, including delegation, service allocation, rewards and additional slashing exposure.3 min · 1 sources
- DeFi · ExplanationWithdrawal queues: a claim today and settlement laterUnderstand asynchronous DeFi withdrawals using Lido’s request, finalization and claim process, including receipt ownership and continuing risk while waiting.3 min · 2 sources
- DeFi · ExplanationVault share price: converting between shares and assetsInterpret vault shares as claims on underlying assets, distinguish conversion estimates from executable previews and account for fees, rounding and limits.3 min · 2 sources
- DeFi · ExplanationVault inflation attacks: donations, rounding and first depositsUnderstand how donations and share rounding can harm deposits into vulnerable vaults, and why the exact implementation and defenses matter.3 min · 2 sources
- DeFi · ExplanationPrincipal and yield tokens: separating a yield-bearing claimUnderstand separating a principal claim from future yield and why the accounting asset and maturity matter.3 min · 3 sources
- DeFi · ExplanationVault curators and allocators: who chooses the lending exposure?Identify who selects a vault’s risks, who moves its funds and who can stop pending changes.3 min · 2 sources
- DeFi · ExplanationVault management and performance fees: how shares can pay the managerDistinguish a fee on managed assets from a fee on earned interest, including how minting shares affects depositors.3 min · 2 sources
- DeFi · ExplanationProtocol backstop staking: rewards paid for absorbing a defined lossUnderstand rewards for absorbing protocol losses and how backstop staking differs from ordinary lending or validator staking.3 min · 1 sources
6 entries
Orders and trading records
Order conditions, depth, spreads and completed trades.
- DeFi · ExplanationOrder-book depth and spread: reading the liquidity behind a quoteCalculate the spread and average execution from discrete orders, and distinguish displayed depth from a completed trade.3 min · 2 sources
- DeFi · ExplanationOrder time in force: GTC, IOC and fill-or-killCompare persistent orders, immediate partial execution and all-or-nothing immediate execution without assuming every venue supports every policy.3 min · 3 sources
- DeFi · ExplanationPost-only orders: requiring a maker order instead of an immediate fillExplain why a maker-only order can be rejected, and why resting successfully does not guarantee a trade.3 min · 3 sources
- DeFi · ExplanationReduce-only orders: closing exposure without reversing itUnderstand how a closing order can avoid opening a new opposite position, including rejection and resizing behavior.3 min · 2 sources
- DeFi · ExplanationStop-market and stop-limit orders: trigger price is not execution priceSeparate a stop trigger from the order sent after it, and understand the trade-off between price bounds and execution uncertainty.3 min · 2 sources
- DeFi · ExplanationTake-profit orders: triggers, partial fills and an open remainderRead a take-profit trigger, choose between a market-style and limited exit, and track the position left after a fill.3 min · 3 sources
14 entries
Futures and options
Read contract terms, margin, funding and settlement examples.
- DeFi · ExplanationPerpetual futures: price exposure without owning the underlying tokenUnderstand perpetual contract exposure, funding and margin without confusing a derivatives position with owning the token.3 min · 3 sources
- DeFi · ExplanationPerpetual funding payments: who pays whom, and on what amount?Calculate a funding payment from notional and a period rate, and avoid confusing a quoted annualization with earned return.3 min · 2 sources
- DeFi · ExplanationMark, index and last price: different numbers with different jobsDistinguish a recent trade, an external reference and a risk valuation when reading derivatives screens and liquidation notices.3 min · 4 sources
- DeFi · ExplanationLeverage, margin and notional: the exposure behind a depositSeparate position exposure from the collateral supporting it and calculate how price changes affect equity.3 min · 3 sources
- DeFi · ExplanationCross and isolated margin: which collateral supports a position?Understand which collateral supports which positions and why an isolation boundary must be read from the protocol rules.3 min · 2 sources
- DeFi · ExplanationInitial and maintenance margin: opening a position versus keeping itExplain why opening a position and keeping it open use different tests, and why liquidation can occur while equity remains positive.3 min · 2 sources
- DeFi · ExplanationRealized and unrealized trading P&L: what changed in the account?Reconcile marked exposure, completed trades, funding and settlement without double-counting the same gain.3 min · 4 sources
- DeFi · ExplanationOpen interest versus volume: outstanding contracts and completed tradesDistinguish outstanding derivative contracts from trading turnover and avoid reading either measure as a directional prediction.3 min · 1 sources
- DeFi · ExplanationPerpetual insurance funds and auto-deleveraging: allocating a shortfallUnderstand a derivatives backstop, its limits and why profitable positions can be reduced during a market shortfall.3 min · 4 sources
- DeFi · ExplanationCrypto calls and puts: a right, a premium and a payoffUnderstand calls, puts, strike prices and expiry, with a clear distinction between buying an option and writing one.3 min · 2 sources
- DeFi · ExplanationOption premiums: intrinsic value, time value and the break-even priceBreak an option price into current exercise value and extra premium, then distinguish that price from the buyer’s eventual profit.3 min · 3 sources
- DeFi · ExplanationImplied volatility: what an option price says, and what it does notRead implied volatility as a model-based interpretation of price, not a prediction of direction or a guaranteed future move.3 min · 3 sources
- DeFi · ExplanationOption settlement currency: why a dollar payoff can become a token amountIdentify what an option pays, in which asset, and why a dollar strike does not imply a dollar cash balance at expiry.3 min · 2 sources
- DeFi · ExplanationSpot-perpetual basis risk: why a hedged position can still loseUnderstand why equal long-spot and short-perpetual quantities can still lose money or be liquidated.3 min · 3 sources
10 entries
Governance and control
Who can vote, change a protocol, pause it or spend shared funds.
- DeFi · ExplanationGovernance tokens: voting authority, delegation and its limitsUnderstand how token-based voting assigns authority, why delegation and snapshots matter, and why governance rights do not automatically imply revenue rights.3 min · 3 sources
- DeFi · ExplanationDAOs: how a group makes and executes shared decisionsFollow a decentralized autonomous organization from membership to proposal and execution, and distinguish social decisions from contract-enforced powers.3 min · 3 sources
- DeFi · ExplanationProtocol upgrades and admin powers: who can change whatUnderstand proxy upgrades, roles and timelocks, and learn how to describe a protocol’s concrete powers without assuming all contracts are immutable.3 min · 3 sources
- DeFi · ExplanationGovernance delegation: voting power without transferring the tokensUnderstand delegated voting power in OpenZeppelin-style governance, including self-delegation, historical snapshots and the distinction from spending authority.3 min · 2 sources
- DeFi · ExplanationGovernance timelocks: a delay, not an automatic vetoUnderstand governance execution delays, distinguish voting from scheduling and execution, and inspect which privileged actions a timelock actually controls.3 min · 1 sources
- DeFi · ExplanationProtocol pauses and reserve freezes: which actions still work?Interpret a paused or frozen lending reserve by looking at the actions the control actually disables.3 min · 3 sources
- DeFi · ExplanationGovernance quorum and proposal thresholds: two different gatesDistinguish the votes needed to create a proposal, the participation needed for quorum and the support needed to pass it.3 min · 2 sources
- DeFi · ExplanationOff-chain votes and on-chain execution: following the authority chainFollow a community vote from signed messages to the separate authority that can change contracts or move treasury funds.3 min · 4 sources
- DeFi · ExplanationDAO treasury runway: separating a token valuation from spendable fundsEstimate how long a DAO can fund spending while making cash availability, revenue assumptions and internal transfers explicit.3 min · 2 sources
- DeFi · ExplanationBorrowed governance power: what snapshots can and cannot preventUnderstand temporary voting power and why snapshots, delays and execution controls address different governance risks.3 min · 3 sources
9 entries
Sources of risk
Price feeds, security evidence, failures and the scope of protection.
- DeFi · ExplanationBlockchain oracles: getting observations into contract decisionsUnderstand why contracts need external observations, how price-feed timestamps and decimals matter, and where oracle trust enters a DeFi system.3 min · 3 sources
- DeFi · ExplanationOracle heartbeats and deviation thresholds: when prices updateUnderstand price-feed heartbeat and deviation triggers, including why a feed still needs timestamp, unit and application-specific freshness checks.3 min · 1 sources
- DeFi · ExplanationTWAP oracles: averaging prices over timeUnderstand time-weighted average prices, distinguish Uniswap v2 and v3 averaging methods and evaluate the trade-off between smoothing and delayed response.3 min · 2 sources
- DeFi · ExplanationSmart-contract audits: reading the scope, findings and limitsLearn what a security audit actually reviewed, how fixes relate to deployed code, and why an audit is evidence about a scope rather than a guarantee.3 min · 3 sources
- DeFi · ExplanationDocumented DeFi exploits: separating mechanism, scope and outcomeRead two primary incident records to distinguish an accounting failure from a compiler defect, keeping affected versions and recovery claims separate.3 min · 3 sources
- DeFi · ExplanationBug bounties and audits: different security evidence and incentivesRead a security audit and a bounty program as different forms of evidence, each with a scope and limitations.3 min · 4 sources
- DeFi · ExplanationLiquidity locks and burned LP tokens: what the claim actually provesUnderstand what locking or making LP receipts inaccessible can restrict, and what it leaves outside that protection.3 min · 3 sources
- DeFi · ExplanationDeFi cover: covered events, exclusions and the claims processRead a DeFi cover product’s event, amount, period and claim rules before treating it as protection for a loss.3 min · 3 sources
- DeFi · ExplanationRug pulls and protocol exploits: different mechanisms behind a lossDistinguish insider deception, misuse of contract permissions and software vulnerabilities when reading about a DeFi loss.3 min · 7 sources
Browse titles and other names A–Z
Browse A–Z
Titles and aliases lead to the same encyclopedia entries.
A · 18 terms
- Aave aTokens: the receipt for a supplied asset
- Aave category borrowing permissions
- Aave collateral swap how works
- Aave efficiency mode: correlated assets and a narrower risk assumption
- Aave eMode explained
- Aave frozen reserve versus paused reserve
- Aave paused frozen reserve difference
- Aave Umbrella backstop staking risk
- Aave Umbrella slashing and cooldown
- add one token to a liquidity pool
- ADL insurance fund crypto meaning
- administrative powers
- AMM
- An out-of-range liquidity position: what changes and what remains?
- APR
- APR versus APY: how compounding changes a displayed rate
- APY
- Automated market makers: trading against a programmed inventory
B · 10 terms
- Bad debt socialization: how a lending loss reaches suppliers
- Balancer 80 20 pool price calculation
- Balancer weighted pool 80 20 explained
- Batch-auction swaps: how orders can settle together
- Blockchain bridges: verifying an event across separate systems
- Blockchain oracles: getting observations into contract decisions
- Borrow caps: limiting debt without guaranteeing liquidity
- Borrowed governance power: what snapshots can and cannot prevent
- Bug bounties and audits: different security evidence and incentives
- bug bounty vs smart contract audit
C · 29 terms
- calculate a perpetual funding payment
- calculate DAO cash runway
- call and put option payoff examples
- can a spot perpetual hedge lose money
- can borrowed tokens influence governance
- change collateral without closing borrowing
- claim Uniswap v3 trading fees
- Collateral and health factors: measuring a loan against its limits
- Collateral looping: gross exposure hidden inside repeated deposits
- collateral ratio
- Collateral swaps: replacing backing while keeping a loan open
- Collecting LP fees: claiming earnings versus increasing a position
- composable finance
- Concentrated liquidity: providing inventory inside a price range
- Connecting a wallet: account access, signatures and approvals
- Constant-product pools: deriving the output from x times y
- cost of switching a DeFi debt asset
- CoW batch auction explained
- Cross and isolated margin: which collateral supports a position?
- cross margin vs isolated margin crypto
- cross-chain bridge
- cross-pool arbitrage
- crypto call put option explained
- Crypto calls and puts: a right, a premium and a payoff
- crypto inverse linear options settlement
- crypto options implied volatility meaning
- crypto swap intent solver explained
- crypto take profit order execution
- Curve StableSwap amplification explained
D · 41 terms
- DAO quorum proposal threshold difference
- DAO treasury runway own token liquidity
- DAO treasury runway: separating a token valuation from spendable funds
- DAOs: how a group makes and executes shared decisions
- decentralised autonomous organisation
- decentralised exchange
- decentralised finance
- Decentralized exchanges: how a token trade reaches settlement
- DeFi
- DeFi arbitrage: why prices converge and differences can remain
- DeFi audit
- DeFi bad debt lenders loss
- DeFi composability: reusing capabilities and inheriting dependencies
- DeFi cover insurance exclusions claim
- DeFi cover: covered events, exclusions and the claims process
- DeFi debt refinancing: changing a debt asset or lending market
- DeFi debt swap refinance loan
- DeFi hacks
- DeFi lending pools: supply claims, debt and available liquidity
- DeFi liquidations: exchanging debt repayment for collateral
- DeFi liquidity versus solvency
- DeFi pool
- DEX
- DEX swap costs: separating pool fees, gas and interface charges
- DEX trading fee versus gas fee
- disable Aave collateral with active debt
- disable collateral Aave meaning
- disconnect wallet
- divergence loss
- do Uniswap fees compound automatically
- Documented DeFi exploits: separating mechanism, scope and outcome
- does a bug bounty mean a protocol is safe
- does a Snapshot vote move treasury funds
- does DeFi collateral earn interest
- does DeFi cover pay for every exploit
- does funding count as realized profit
- does out of range liquidity earn fees
- does removing liquidity sell my tokens
- Does supplied collateral earn interest? Read the market accounting
- does supplied collateral earn lending interest
- Dutch-auction swap orders: a price that changes until someone fills
F · 9 terms
- FDV
- Fee-on-transfer tokens: when the received amount is smaller
- find the correct Uniswap pool address
- Fixed and variable DeFi borrowing: which risk does a fixed rate remove?
- fixed maturity debt versus changing borrowing rates
- fixed rate vs variable rate DeFi loans
- flash loan governance voting attack
- Flash loans: borrowing that must settle inside one transaction
- fully diluted valuation
G · 4 terms
H · 9 terms
- how do CoW batches match trades
- how does a UniswapX Dutch auction work
- how does StableSwap amplification work
- how lending losses reduce vault shares
- how much LP fees cover impermanent loss
- how perpetual funding payments calculated
- how repay Aave loan full amount
- how to fully repay an Aave debt
- how vault fee shares dilute ownership
I · 14 terms
- Identifying a DEX pool: token pair, network, fee and contract
- Impermanent loss: comparing pool inventory with simply holding
- implied volatility versus historical volatility
- Implied volatility: what an option price says, and what it does not
- Incentives and earned fees: identifying where a yield comes from
- Initial and maintenance margin: opening a position versus keeping it
- initial maintenance margin difference
- Insufficient DEX liquidity: no route, poor quote or unavailable inventory?
- insufficient liquidity for this trade
- Intent-based swaps: authorizing an outcome for solvers to execute
- intrinsic value versus time value
- IOC FOK GTC crypto orders
- IOC versus FOK order
- Isolated lending markets: which risks are actually separated?
L · 22 terms
- Lending interest indexes: accruing balances without daily transfers
- Lending liquidity versus solvency: can assets be withdrawn or recovered?
- lending market
- leverage notional margin example
- Leverage, margin and notional: the exposure behind a deposit
- liquid staking token
- Liquid staking: a transferable claim on a staking arrangement
- Liquidation bonuses: who receives the discount?
- liquidation threshold
- Liquidity locks and burned LP tokens: what the claim actually proves
- liquidity mining
- Liquidity pools: shared inventory with different accounting rules
- Liquidity provider positions: what an LP token or NFT represents
- liquidity receipt
- loan liquidation
- locked liquidity burned LP token meaning
- LP break-even fees: when trading revenue covers the holding shortfall
- LP fees versus holding tokens
- LP position
- LST
- LTV
- LTV and liquidation threshold: two different collateral limits
M · 9 terms
- mark price index price last price
- mark price versus oracle and last trade
- Mark, index and last price: different numbers with different jobs
- Market cap versus fully diluted valuation
- Maximal extractable value: the consequences of transaction order
- miner extractable value
- minimum output versus maximum input
- Morpho curator versus allocator permissions
- Morpho vault curator allocator roles
O · 14 terms
- Off-chain votes and on-chain execution: following the authority chain
- On-chain limit orders: price conditions and execution dependencies
- one-transaction loan
- Open interest versus volume: outstanding contracts and completed trades
- open interest vs trading volume
- option premium intrinsic time value crypto
- Option premiums: intrinsic value, time value and the break-even price
- Option settlement currency: why a dollar payoff can become a token amount
- Oracle heartbeats and deviation thresholds: when prices update
- order book depth bid ask spread
- order book spread and average fill price
- Order time in force: GTC, IOC and fill-or-kill
- Order-book depth and spread: reading the liquidity behind a quote
- outstanding futures contracts versus turnover
P · 18 terms
- Pendle PT accounting asset and maturity
- Pendle PT YT explained
- perpetual contracts versus owning spot tokens
- Perpetual funding payments: who pays whom, and on what amount?
- Perpetual futures: price exposure without owning the underlying token
- Perpetual insurance funds and auto-deleveraging: allocating a shortfall
- post only order rejected
- Post-only orders: requiring a maker order instead of an immediate fill
- prevent a closing order from reversing a position
- price oracle
- Principal and yield tokens: separating a yield-bearing claim
- Private transaction submission: hiding an order from which audience?
- Projected and realized yield: measuring what actually happened
- proposal threshold versus quorum
- Protocol backstop staking: rewards paid for absorbing a defined loss
- protocol incidents
- Protocol pauses and reserve freezes: which actions still work?
- Protocol upgrades and admin powers: who can change what
R · 17 terms
- range liquidity
- Realized and unrealized trading P&L: what changed in the account?
- realized unrealized PnL perpetual futures
- Rebasing tokens: balances can change without a transfer
- recursive borrowing balance sheet
- recursive borrowing collateral looping
- reduce only order meaning
- Reduce-only orders: closing exposure without reversing it
- Removing liquidity versus selling tokens: different exit actions
- repay Aave with collateral explained
- Repaying a DeFi loan: debt asset, accrued interest and the final balance
- Repaying with collateral: the swap inside the repayment
- Restaking: additional services and additional slashing conditions
- reward emissions
- rug pull fraud versus contract vulnerability
- rug pull versus smart contract exploit
- Rug pulls and protocol exploits: different mechanisms behind a loss
S · 22 terms
- same token pair different liquidity pools
- Sandwich attacks: trading around someone else’s swap
- sell supplied collateral to repay a loan
- shared collateral versus isolated position
- single sided liquidity deposit price impact
- Single-sided liquidity deposits: why adding one token can have a cost
- Slippage and price impact: two reasons a swap rate can differ
- slippage versus price impact
- smart contract upgrade
- Smart-contract audits: reading the scope, findings and limits
- Snapshot vote does it execute transaction
- spot perpetual hedge basis risk
- Spot-perpetual basis risk: why a hedged position can still lose
- StableSwap pools: low slippage near balance and risk away from it
- stop loss stop limit crypto difference
- stop trigger versus limit price
- Stop-market and stop-limit orders: trigger price is not execution price
- Supply caps: limiting deposits into a lending reserve
- swap deadline expired quote
- Swap deadlines: why an old quote can stop executing
- swap exact input vs exact output
- Swap routing and aggregators: selecting a path through liquidity
T · 15 terms
- take profit market versus limit order
- Take-profit orders: triggers, partial fills and an open remainder
- time-weighted average price
- Token emissions: rewards, dilution and the unit of account
- Token unlocks and vesting: when restricted supply becomes available
- token voting
- token wrapper
- tokenized vault
- total value locked
- Total value locked: what TVL measures and what it misses
- trade routing
- Turning collateral on or off: supply balance is not borrowing power
- TVL
- TWAP
- TWAP oracles: averaging prices over time
U · 7 terms
- unavailable withdrawal versus bad debt
- Uniswap liquidity out of range what happens
- Uniswap v2 and v3: full-range versus concentrated liquidity
- Uniswap v4 hooks: custom pool behavior and extra dependencies
- UniswapX Dutch auction order
- utilisation rate
- Utilization and borrowing rates: pricing a pool’s available funds
V · 6 terms
- Variable debt tokens: tracking a borrower’s growing obligation
- Vault curators and allocators: who chooses the lending exposure?
- Vault inflation attacks: donations, rounding and first deposits
- Vault management and performance fees: how shares can pay the manager
- vault performance management fee example
- Vault share price: converting between shares and assets
W · 20 terms
- wallet connection
- Weighted liquidity pools: why every AMM is not fifty-fifty
- what a liquidity lock does not protect
- what does a signed swap intent authorize
- what happens when an insurance fund runs out
- what is a perpetual futures contract
- What is DeFi? Financial applications built from smart contracts
- why a dollar strike option pays BTC
- why cannot I withdraw my lending balance
- why cannot withdraw supplied tokens Aave
- why did my swap expire
- why does a DEX swap cost so much
- why liquidation happens before balance reaches zero
- why was my post only order cancelled
- withdraw pool liquidity without swapping
- Withdrawal queues: a claim today and settlement later
- Withdrawing lending supply: liquidity, collateral and transaction limits
- Wrapped assets: an interface change or a separate backing claim
- Wrapped staked ether: shares instead of a rebasing balance
- wstETH
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