# Glossary

1. **dETF (Decentralized Exchange-Traded Fund)**: A type of investment fund on a blockchain that tracks a specified basket of assets, similar to a traditional ETF.
2. **Web3**: The vision of a decentralized internet that leverages blockchain and peer-to-peer networking, allowing users to connect directly without intermediaries.
3. **DAO (Decentralized Autonomous Organization)**: An organization that is run by smart contracts on the blockchain, with decision-making processes that are open, transparent, and controlled by token holders.
4. **Smart Contract**: A computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract without a middleman. These transactions are trackable and irreversible.
5. **Staking**: The process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. This usually involves holding onto a cryptocurrency and locking it in a wallet to support the network's operations.
6. **Liquidity**: The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
7. **Liquidity Pool**: A smart contract that contains funds, providing liquidity for the decentralized exchange. Users can trade against the liquidity pool, and pool contributors earn fees for providing liquidity.
8. **DeFi (Decentralized Finance)**: An umbrella term for financial services on public blockchains, primarily Ethereum. Includes open lending protocols, insurance, derivatives, exchanges, and more.
9. **Rebase**: A rebase (or price-elastic) token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token's price fluctuations. This expansion and contraction are what we call a rebase mechanism.
10. **Yield Farming**: The practice of staking or lending cryptocurrency assets in order to generate high returns or rewards in the form of additional cryptocurrency.
11. **dApp (Decentralized Application)**: An application that runs on a decentralized network, avoiding a single point of failure.
12. **Wallet**: A digital place where you can securely store your cryptocurrencies. Some wallets are physical devices, and others are software applications you can download.
13. **Tokenomics**: A study of the economic systems that can be created using blockchain tokens.
14. **Gas Fees**: The fee or pricing value required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform.
15. **Collateralization**: The process where a borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan.
16. **Risk Parity**: An approach to investment portfolio management which focuses on the allocation of risk, usually defined as volatility, rather than the allocation of capital.
17. **LSD (Liquid Staking Derivative)**: A representation of staked tokens that remain liquid and can be used elsewhere in DeFi for additional yield opportunities.
18. **Reimbursement Pool**: A reserve of funds set aside to compensate users affected by a particular event (e.g., a hack or system failure).