The most comprehensive crypto glossary for Intermediate level
The most comprehensive crypto glossary out there.
Maker Protocol (MakerDAO)
A decentralized finance (DeFi) platform that operates on the Ethereum blockchain. MakerDAO facilitates collateral-backed cryptocurrency loans without an intermediary. The platform also issues Dai, a stablecoin pegged to the value of the US Dollar, which is used as the digital representation of the US Dollar in USD-denominated loans and collaterals.
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Level: Intermediate
Maker (MKR)
The governance token of MakerDAO, which is a decentralized finance (DeFi) platform running on the Ethereum blockchain. The MKR governance token allows participants and investors to vote on proposals, which typically involve adding new collateral assets into the platform and updating the platform’s existing protocols.
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Level: Intermediate
Mainnet
An independent blockchain that operates in its own network with its own technology and protocol. Layer-1 blockchains constitute the typical mainnets, like Bitcoin and Ethereum.
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Level: Intermediate
Loan-to-value ratio (LTV)
The ratio of a financial loan to the value of collateral that is given against the loan.
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Level: Intermediate
LPoS (liquid proof of stake)
A consensus mechanism derived from the concept of liquid democracy. Liquid democracy is a direct form of democracy, where participants can vote directly on issues or assign delegates to vote on their behalf.
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Level: Intermediate
Liquid market
A market with high liquidity. Liquidity is the ability to buy or sell an asset instantaneously at current market prices.
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Level: Intermediate
Liquidity provider tokens (LP)
A token that is created and awarded to liquidity providers. LP tokens represent the share of the liquidity pool that a liquidity provider owns.
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Level: Intermediate
Liquidity provider
A user who deposits tokens into a liquidity pool, which supplies liquidity for the pool. In return for taking this risk, the user is typically awarded with liquidity provider (LP) tokens.
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Level: Intermediate
Liquidity premium
A compensation offered to investors to invest in assets with poor liquidity, or when the liquidity of a liquid asset drops substantially.
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Level: Intermediate
Liquidity pool
A crowdsourced pool of cryptocurrencies or tokens, which facilitates trading between the currency pairs of those assets in the pool.
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Level: Intermediate
Liquidity Aggregator
A protocol that accumulates liquidity from different centralized and decentralized exchanges, in order to increase asset liquidity and reduce price slippage when trading in its platform.
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Level: Intermediate
Limit Order
A type of order placed in an exchange to buy or sell an asset when it reaches a specified price. If a trader places a limit buy order, it would typically be a lower price than the current market price, and if they place a limit sell order, it would typically be higher than the market price.
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Level: Intermediate
Virgin Bitcoin
A Bitcoin that has been received by a miner as a block reward, and has never been spent.
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Level: Intermediate
Leverage
Borrowing money to fund an investment. In trading, a trader uses leverage, in other words borrows money from an exchange, to open far larger positions than their capital allows, which could be as high as 100x of their capital.
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Level: Intermediate
Ledger
A digital record of financial transactions that cannot be altered. Blockchains are in practice distributed ledgers.
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Level: Intermediate