Defi Glossary

Browse 4 defi terms defined in plain English, from the cultural dictionary of computing.

4 Defi Terms

Flash Loan Attack: A decentralized-finance exploit that uses a flash loan to borrow large amounts of capital within one transaction, manipulate a market or protocol condition,...
liquidity pool: A smart contract holding paired token reserves that enables decentralized trading without order books. Liquidity providers deposit equal values of two tokens...
MEV: Maximal extractable value (originally 'miner extractable value') — the profit a block producer can capture by arbitrarily reordering, inserting, or censoring...
staking: The act of locking up cryptocurrency tokens to participate in network validation (in proof-of-stake systems) or to earn yield in DeFi protocols. Staked tokens...