Glossary
Stablecoin
A token pegged to a currency, usually the US dollar.
A stablecoin is a token designed to hold a constant value, usually one US dollar. USDT and USDC are backed by reserves held by their issuers; DAI is backed by crypto collateral.
They are the plumbing of crypto trading — the pair you exit into when you do not want to leave the ecosystem. They also carry issuer risk: a stablecoin is only worth a dollar if the company behind it can actually redeem one.
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.