Glossary
Points Programme
A promise of future allocation based on usage instead of a token that exists today.
A points programme credits usage with points and implies those points will convert into future rewards. Nothing in the market has to pay them, because the token does not exist yet.
The programme is a marketing tool that works because the implied reward is large and immediate to the person counting the points. It succeeds exactly while users believe in the conversion.
This is the difference between points and an airdrop: a points programme is a promise from a team, an airdrop is tokens already on-chain and claimable. Anything paid to you before distribution should be valued at zero until the distribution happens.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.