What is DeFi?
DeFi (Decentralized Finance) is an ecosystem of financial applications and services built on blockchain technology, enabling activities like lending, borrowing, trading, and yield farming without traditional intermediaries.
What are Gas Fees?
Gas fees are transaction fees paid in Ethereum or other blockchains for executing operations on the blockchain, compensating miners for processing transactions and executing smart contracts.
What Is A Private Key?
A private key is a secret cryptographic key, similar to a password for a digital wallet, crucial for accessing and safeguarding cryptocurrency holdings.
What Is A Blockchain Explorer?
A blockchain explorer is an online tool that provides detailed insights into blockchain transactions, balances, and blocks, enhancing transparency and auditability.
What Is Arbitrage?
Arbitrage in cryptocurrency is the practice of capitalizing on price differences for the same asset across different exchanges. Many arbitrage bots trade on decentralized exchanges (DEXes), automating this process to take advantage of these price disparities efficiently.
What is Impermanent Loss?
Impermanent loss is a potential downside for liquidity providers in DeFi when the price of the two tokens in a liquidity pool changes. If one token’s price increases or decreases significantly compared to the other, the pool automatically rebalances by selling some of the more valuable token for the less valuable one. As a result, the liquidity provider may end up with a smaller amount of the more valuable token than if they had simply held both tokens outside the pool.
This loss is called "impermanent" because it can be recovered if the token prices return to their original ratio. However, if the liquidity provider withdraws their funds while there is still a price difference, they may lose more than they would have by just holding the tokens directly.
Where can I calculate my impermanent loss?https://app.intotheblock.com/insights/defi/protocols/sushiswap?address=0xc3d03e4f041fd4cd388c549ee2a29a9e5075882f
What is a Transaction Approval?
Transaction approval is a permission step in blockchain where users allow a smart contract to access or move their tokens. Before a transaction can proceed, users need to give this approval, usually through their wallet, to ensure they control which contracts can interact with their assets. This step helps protect users from unauthorized access to their tokens.
The Sushi DeFi Glossary 2023
For anyone seeking more information or clarity on DeFi-related topics, the "Sushi DeFi Glossary 2023" is a valuable resource. It provides detailed explanations of various terms and concepts in the world of decentralized finance. You can access this comprehensive glossary by visiting The Sushi DeFi Glossary 2023.
What is DeFi?
DeFi (Decentralized Finance) is an ecosystem of financial applications and services built on blockchain technology, enabling activities like lending, borrowing, trading, and yield farming without traditional intermediaries.
What are Gas Fees?
Gas fees are transaction fees paid in Ethereum or other blockchains for executing operations on the blockchain, compensating miners for processing transactions and executing smart contracts.
What Is A Private Key?
A private key is a secret cryptographic key, similar to a password for a digital wallet, crucial for accessing and safeguarding cryptocurrency holdings.
What Is A Blockchain Explorer?
A blockchain explorer is an online tool that provides detailed insights into blockchain transactions, balances, and blocks, enhancing transparency and auditability.
What Is Arbitrage?
Arbitrage in cryptocurrency is the practice of capitalizing on price differences for the same asset across different exchanges. Many arbitrage bots trade on decentralized exchanges (DEXes), automating this process to take advantage of these price disparities efficiently.
What is Impermanent Loss?
Impermanent loss is a potential downside for liquidity providers in DeFi when the price of the two tokens in a liquidity pool changes. If one token’s price increases or decreases significantly compared to the other, the pool automatically rebalances by selling some of the more valuable token for the less valuable one. As a result, the liquidity provider may end up with a smaller amount of the more valuable token than if they had simply held both tokens outside the pool.
This loss is called "impermanent" because it can be recovered if the token prices return to their original ratio. However, if the liquidity provider withdraws their funds while there is still a price difference, they may lose more than they would have by just holding the tokens directly.
Where can I calculate my impermanent loss?https://app.intotheblock.com/insights/defi/protocols/sushiswap?address=0xc3d03e4f041fd4cd388c549ee2a29a9e5075882f
What is a Transaction Approval?
Transaction approval is a permission step in blockchain where users allow a smart contract to access or move their tokens. Before a transaction can proceed, users need to give this approval, usually through their wallet, to ensure they control which contracts can interact with their assets. This step helps protect users from unauthorized access to their tokens.
The Sushi DeFi Glossary 2023
For anyone seeking more information or clarity on DeFi-related topics, the "Sushi DeFi Glossary 2023" is a valuable resource. It provides detailed explanations of various terms and concepts in the world of decentralized finance. You can access this comprehensive glossary by visiting The Sushi DeFi Glossary 2023.