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Day 28 of 31 days crypto/Defi terminologies
Private sale vs. Publicsale
Some of these terms are really confusing especially trying to navigate all of these terms as a newbie
Do they mean the same thing?
A thread🧵
Private sale vs. Publicsale
Some of these terms are really confusing especially trying to navigate all of these terms as a newbie
Do they mean the same thing?
A thread🧵
You get into a project's presale, whitelist spots are being hustled for, and Boom! You see some folks talking about participating in private sales😀
The confusion then set it.
What are public and private sales?
The confusion then set it.
What are public and private sales?
Both are all under a fundraising category, ICO, but they have different meanings.
Walk with me👇👇👇
✅️Private Sale
The ICO private sale period is the process in which tokens that are not yet announced to investors or open to the public are sold.
Walk with me👇👇👇
✅️Private Sale
The ICO private sale period is the process in which tokens that are not yet announced to investors or open to the public are sold.
Day 26 of 31 days of crypto/Defi terminologies
Yield Aggregator
What are yield aggregators, and how do they operate?
A thread 🧵
Yield Aggregator
What are yield aggregators, and how do they operate?
A thread 🧵
Yield aggregators are also called auto compounders or yield optimizers, and they play a crucial role in the yield economy by combining different defi protocols
and strategies to maximize investors' profit.
and strategies to maximize investors' profit.
Let me explain what I mean by this, just like how these ponzi sites promised returns on investment. Then these resources are pulled together and invested in different businesses, as the case may be, and then returns are distributed to these guys based on the agreement made.
Day 12 of 31 days crypto/defi terminologies challenge
TVL- Total Value Locked
The Importance of TVL in the course of defi research cannot be overemphasized
A short thread🧵
TVL- Total Value Locked
The Importance of TVL in the course of defi research cannot be overemphasized
A short thread🧵
Total Value Locked(TVL): is the overall value of crypto assets deposited in a decentralized finance (DeFi) protocol generally
TVL includes all the coins deposited in all of the functions that DeFi protocols offer, including:
- Staking
- Lending
- Liquidity pools
TVL includes all the coins deposited in all of the functions that DeFi protocols offer, including:
- Staking
- Lending
- Liquidity pools
-Importantly, it doesn't reflect the yield these deposits are expected to earn.
It only means the current value of the deposits themselves
Does TVL change over time?
Yes, it does, and here is why;
It only means the current value of the deposits themselves
Does TVL change over time?
Yes, it does, and here is why;
Day 11 of 31 days crypto/defi terminologies challenge
FDV- Fully Diluted Valuation
During research or going through some Defi analysis tools, the word ''Fully Diluted Valuation/ Marketcap'' is usually attached to the details of a token or coin.
FDV- Fully Diluted Valuation
During research or going through some Defi analysis tools, the word ''Fully Diluted Valuation/ Marketcap'' is usually attached to the details of a token or coin.
You might wonder what this means and how it helps my research course.
A thread 🧵
A thread 🧵
FDV — is a simple concept. It builds on the idea of market capitalization; for short, "Marketcap."
Market Capitalization- is the total value of all the coins that have been mined or is in circulation
Market Capitalization- is the total value of all the coins that have been mined or is in circulation
Day3
ICO
ICO stands for “initial coin offering,” and refers to a method of fundraising capital for early-stage cryptocurrency projects. In an ICO, a blockchain-based startup mints a certain quantity of its own native digital token and offers them to early investors, normally in
ICO
ICO stands for “initial coin offering,” and refers to a method of fundraising capital for early-stage cryptocurrency projects. In an ICO, a blockchain-based startup mints a certain quantity of its own native digital token and offers them to early investors, normally in
exchange for other cryptocurrencies or stables.
This kind of information for ICOs comes with research and can be accessed through certain research tools.
ICOs enable startups not only to raise funds without giving up equity but also to establish a community of incentivized users
This kind of information for ICOs comes with research and can be accessed through certain research tools.
ICOs enable startups not only to raise funds without giving up equity but also to establish a community of incentivized users
who want to see the project succeed
While ICOs can offer an easy funding mechanism and an innovative approach for startups to raise money, buyers can also benefit from both access to the service that the token confers (usecase)as well as a rise in the token’s price
While ICOs can offer an easy funding mechanism and an innovative approach for startups to raise money, buyers can also benefit from both access to the service that the token confers (usecase)as well as a rise in the token’s price
