Glossary
DeFi
Also called decentralised finance, decentralized finance
Apps that move coins with smart contracts instead of a company helpdesk.
Decentralised finance is a marketing label for software that lets you swap, lend, or provide liquidity by talking to contracts. There is often no support number. A successful transaction that does the wrong thing is still successful.
Read the network, the contract, and the approval. Fees are an auction for block space, not a punishment. If you do not understand the contract, you are not using a bank with a nicer app. You are running a program with your money.
See also
- ApprovalPermission for a smart contract to move tokens from your address, often wider than people realise.
- GasThe fee paid to include a transaction on a busy network, priced like an auction.
- LiquidityHow easily you can trade an amount without moving the price a lot.
- Smart contractA program on a ledger that runs when someone pays to call it.
