Don't Get Lost in the DeFi Jungle! Bliv Learn's Glossary Will Guide You Through! 🎃

Our glossary is like a map for navigating the sometimes-confusing terminology and concepts of DeFi and NFTs. We've got everything covered, so you'll be speaking fluent DeFi in no time.

Auto-Deleveraging (ADL):

A mechanism used by some exchanges and lending platforms to automatically liquidate positions to meet margin calls or pay off debts.

Automated Market Maker (AMM):

A decentralized exchange (DEX) type that uses mathematical algorithms and smart contracts to match and execute trades between buyers and sellers automatically.

Basis Trading:

The practice of buying and selling futures contracts based on the difference in price between the spot price and the futures price.

Basis:

The difference between an asset's spot price and the futures price.

Bid-Ask Spread:

The difference between the highest price a buyer is willing to pay for an asset (bid) and the lowest price a seller is willing to accept for the same asset (ask).

Call Option:

An option that gives the holder the right to buy an asset.

Closing Price:

The final price of an asset at the end of a trading session. This price is used to calculate the profit or loss for the day.

Collateralization:

The practice of using assets as collateral for a derivatives contract in order to protect against default.

Cross-Collateralization:

The ability to use assets from one trading pair as collateral for a trade in another pair on a DEX.

Decentralized Exchange (DEX):