# Glossary

**DeFi** - Decentralized Finance or peer to peer financial services on public blockchains

**ASA** - Algorand Standard Asset also known as Assets

**AMM** - An automated market maker or the underlying protocol that powers a decentralized exchange (Dex)

**Dex -** A decentralized exchange or a peer-to-peer marketplace where transactions occur directly between crypto traders

**LP** - Liquidity Pool also known as Pools 

**Liquidity** - The availability or ease at which tokens can be swapped.

**TVL** - Total Value Locked or the overall value of assets deposited in a decentralized protocol

**MCAP -** Market Capitalization or Market Cap is the total dollar value of all the tokens that have been minted for a specific Asset

**Smart Contract** - Trustless agreements or deals that are executed with code on the blockchain

**Staking** - Placing your digital assets into a smart contract to earn passive income.

**Token -** An asset that allows you to interact with cryptocurrency based protocols

**Pool Tokens** - Tokens distributed to users who are participating in a liqudity pool that can be used for farming/staking rewards.

**DeFi Tokens** - Decentralized Finance tokens that aim to reproduce traditional financial systems (lending, saving, etc).

**Governance Tokens** - Tokens distributed to users that allows them to participate in governance voting

**NFTs** - Non-Fungible Tokens are rights to a unique digital or real world asset.

**NFDs** - Non-Fungible Domains are rights to a digital domain

**Security Tokens** - Tokens equivalent to traditional securities like stocks and bonds

**Slippage** - When a buyer or seller trades their asset for more or less than the expected price.  Slippage occurs when you are working with different AMMs with lower amounts of Liquidity

**Volatility** - A measure for how much the price of an asset has moved up or down over time.

**Aggregate Charts** - Charts that are created by combining all available candles from all ASA/Algo pools.  Since arbitrage opportunities exist between various pools, candles open/close may not always line up.  

**Wrapped** - A smart contract representing locked collateral of an original asset (for example goBTC is wrapped Bitcoin).

**Watchlist** - ASAs that have been flagged by the user, similar to favorites

**Impermeant Loss** - Net difference between the value of two cryptocurrency assets in a liquidity pool based automated market maker.

**Rug** - A term to indicate when a project or asset has been abandoned by the team  and they have sold or removes all of its liquidity.