Glossary
Smart Contract
Self-executing code deployed to a blockchain, with no off switch and no support line.
A smart contract is code deployed to a blockchain that executes automatically when conditions are met. It has no off switch and no support team.
That immutability is the point and the risk. It means nobody can censor your transaction, and it also means a bug is permanent. Every major DeFi exploit was a smart contract behaving exactly as written.
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.