Terms related to decentralized finance, including DEX, AMM, liquidity pools, yield farming, TVL, impermanent loss and other concepts.

DAO

Decentralized governance model

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Total Value Locked

Value of assets deposited in DeFi

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Decentralized Finance

Financial services without traditional intermediaries

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Liquidation Threshold

Risk level at which a position can be liquidated

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Collateral

Asset securing a DeFi obligation

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Liquidity Mining

Rewards for supplying protocol liquidity

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Automated Market Maker

Algorithmic liquidity and price discovery

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Collateralization Ratio

Ratio of collateral value to debt value

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Price Oracle

Market-price source for DeFi protocols

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Impermanent Loss

Relative loss caused by asset-price changes

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Swap

Exchange of one cryptoasset for another

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Yield Farming

Strategies for generating DeFi yield

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Lending Protocol

Protocol for decentralized lending and borrowing

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Borrowing

Borrowing assets through DeFi protocols

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Liquidity Provider

Participant providing liquidity to a protocol

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Liquidity Pool

On-chain reserve used by DeFi protocols

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Decentralized Lending

Blockchain-based lending without traditional intermediaries

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Flash Loan

Atomic loan without traditional collateral

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Oracle

External data infrastructure for smart contracts

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dApp

Decentralized blockchain application

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Slippage Tolerance

Maximum acceptable price deviation

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DeFi

Decentralized finance on blockchain

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