Decentralized Finance (DeFi)
By CoinGecko | Updated on Mar 03, 2020
Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
DeFi applications cover many use cases and a few popular ones are stablecoins, lending/borrowing and trading (decentralized excanges). By removing the middleman in systems, DeFi applications are able to achieve a better rate of returns for its users, while lowering barrier of entry as the application does not discriminate or censor any particular party from joining.
Related Terms
Ticker
A ticker is a stock or asset symbol that abbreviates the asset name and it can be used as an identifier of the asset.
Zero Knowledge Proof
Cryptographic proof for 2 parties to verify a value without revealing what the value is.
Fully Diluted Valuation
Fully Diluted Valuation (FDV) is the theoretical market capitalization of a coin if the entirety of its supply is in circulation, based on its current market price. The FDV value is theoretical as increasing the circulating supply of a coin may impact its market price. Also depending on the tokenomics, emission schedule or lock-up period of a coin's supply, it may take a significant time before its entire supply is released into circulation.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
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