Crypto Glossary

Crypto Glossary‚Äč

This is a crypto glossary of terms related to digital assets, blockchain and DEX.

AMM

An automated market maker (AMM) is a protocol that uses algorithms to provide liquidity to the market on a DEX. AMMs use a set of predefined rules to determine the buy and sell prices for a particular asset and stand ready to buy or sell at those prices. More about AMMs can be read.

APR

Annual Percentage Rate (APR) is an asset’s estimated or expected return on investment over a year.

DeFi

Decentralized finance (DeFi) refers to financial applications and services built on top of blockchain technology and operating in a decentralized manner.

DEX

A decentralized exchange is a platform that allows users to buy and sell cryptocurrencies and other digital assets in a peer-to-peer manner.

Gas Fee

It is a fee that is charged to users for executing a transaction on the blockchain. It is an incentive for miners who process and validate the transactions to include them in the blockchain.

Liquidity

Liquidity refers to how easily an asset can be bought or sold in the exchange without significantly affecting its price.

LP

A Liquidity Provider (LP) is a market maker who helps to facilitate trades by providing liquidity to the market.

LPF

A Liquidity Provider Fee (LPF) is a fee that is charged by a decentralized platform to provide liquidity to the market.

LP Token

A liquidity provider token (LP Token) is a type of cryptocurrency that is used to facilitate trading on a DEX where liquidity pools are available. It serves as a reward to traders who provides liquidity to pools.

Mnemonics

Mnemonics are important because it serves as your Private Key that no one (not even Riverex) has access to. You can log in to the Riverex platform if you forget your username or password and log in to new devices/hosts for the first time. Mnemonics are also used to access your crypto wallet safely.

PF

A Platform Fee (PF) is a fee that is charged by a DEX for providing a platform for buying and selling cryptocurrency and other digital assets.

Public Key

A Public Key is an address that you can share with your peers. This will be used when you are receiving or swapping cryptocurrencies with other traders.

Slippage

It is the difference between the expected price of a trade and the price at which the trade is actually executed.

Smart Contract

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.

Swap

It refers to exchanging one cryptocurrency you hold for the equivalent value of another cryptocurrency.