Arbitrage = Process of utilizing price differencess between exchanges and thus making profit.
Audit = Audits can be either formal or informal and provide third-party assurance to various stakeholders that the subject matter is free from material misstatement.
Automated market maker = Automated market makers are smart contracts that hold liquidity reserves (or liquidity pools) that traders can trade against. These reserves are funded by liquidity providers. Anyone can be a liquidity provider who deposits an equivalent value of two tokens in the pool. In return, traders pay a fee to the pool that is then distributed to liquidity providers according to their share of the pool. (taken from https://academy.binance.com/en/articles/what-is-uniswap-and-how-does-it-work)
Bonding Curve = A bonding curve is a mathematical concept used to describe the relationship between price and the supply of an asset.
Compound interest = Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Compound interest can be thought of as "interest on interest," and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.
Deflationary Token = Tokens are “deflationary” if a percentage is permanently removed from the marketplace over time. Buy-backs and burns are a popular way of destroying tokens. This causes scarcity which hopefully makes the price rise.
Game Theory = A theoretical framework for evaluating the outcomes of social situations.
Impermanent loss (IL) = Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
Liquidity = Liquidity is the ability of a coin to be easily converted into other coins.
Liquidity Mining = An form of cryptocurrency mining that supports work and transactions on a blockchain usually without expensive application or hardware-specific equipment required by older forms of cryptocurrency mining. Rewards are provided to liquidity providers as a means to incentivize liquidity mining providers, in addition to growing and supporting a blockchain's user base.
Liquidity Pool = Is a pool of deposited funds meant to provide liquidity to a currency, network, or Smart Contract. There are usually incentives or rewards given to Liquidity providers..
Liquidity Provider = These users supply liquidity to liquidity pools in the form of tokens.
Metamask = Metamask is a popular Web 3.0 wallet used in DeFi.
Marketcap = Market Capitalization. A measure of the total funds invested in a company or project. This market cap of a coin, company, or project can be calculated by multiplying the asset's unit price by the total number of coins.
Multisig Wallet = A multiple signature wallet is a cryptocurrency wallet that controls access and changes to one or more Smart Contracts. Community governed projects like a DAO often require multiple signers to approve a transaction before it will be executed.
Return on Investment = A measurement of the performance of an calculated by subtracting the current value of an investment from the amount invested and then dividing the total by the amount invested. (Current Value - Amount Invested)/Amount Invested
Smart contracts = Smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
Slippage = difference between the expected price of a trade and the price at which the trade is executed
Stablecoin = A type of cryptocurrency whose value is pegged to that of an underlying asset.
Volatility = A measurement of the variation in the price of something over a given period of time.
Yield Farming = Yield Farming is the process of putting tokens to productive use in a DeFi market. This is done to earn passive interest income. It requires manually searching protocols for the best interest rates. Or one can utilize a Yield Aggregator.