Glossary
Staking
Locking tokens to help secure a network, earning rewards in return.
Staking means locking tokens to help secure a proof-of-stake network. In return you earn rewards, usually paid in the same token you staked.
It is not free money. The yield is dilution, the token can fall, and some networks impose an unbonding period that locks your funds for days or weeks after you decide to leave.
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.