15 DEFI ACRONYMS YOU SHOULD KNOW

PART 2 8. DEX - Decentralized Exchange: Unlike Centralized Exchanges, decisions are voted for by members of the network and transactions are public for everyone to see without an intermediary.

15 DEFI ACRONYMS YOU SHOULD KNOW

A Thread 🧵 1. DAO - Decentralised Autonomous Organisation: This is a group of people with no central authority that vote to make decisions in a smart contract. They are also known as the Decentralized Autonomous Corporation. An example is MakerDAO.

Let's read about Impermanent Loss..

Impermanent loss is one of the cons of Liquidity Mining..

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗜𝗺𝗽𝗲𝗿𝗺𝗮𝗻𝗲𝗻𝘁 𝗟𝗼𝘀𝘀?

How does it occur?

How do we prevent it?

A Thread 🧵
👇👇👇 Impermanent Loss by definition is an unrealised loss on a asset locked in a Liquidity Pool.

This is as a result of an asset increasing in supply as against the other in the pair.

This usually occur in pools where assets paired together are not of the same volatility.

1/n

Last week I wrote about Liquidity Pools. Today I'll be going deeper.
Kinda like a Part 2!

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗠𝗶𝗻𝗶𝗻𝗴?

A Thread 🧵

👇👇👇 From the word 'MINING', someone might think of Blockchain mining for example in terms of #Bitcoin but no it doesn't involve block mining at all.

In fact it's a much more simpler process.
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Let's Read about Liquidity Pools.

They are a VERY IMPORTANT component in Web3 / DeFi.

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗣𝗼𝗼𝗹𝘀?

How do they function?

What is their utility?

A Thread 🧵

👇👇👇 A Liquidity pool is a pair of tokens pulled together proportionally in a smart contract.

They are used to provide liquidity for Decentralised Exchanges (DEXes).
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Let's read about Stablecoins..

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀?

A Thread 🧵

👇👇👇 Stable coins from the word "Stable" are non volatile tokens that over time have been able to maintain their 1 to 1 peg to a Fiat currency like the US dollar.

It is sort of like a digital cash.
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Let's Talk about DeFi..

DeFi stands 𝗗𝗲𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘀𝗲𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 but what's it all about?

Is it just Bitcoin? What does it really entail?

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗗𝗲𝗙𝗶? [DeFi 101] 📝

A Thread 🧵
👇👇👇 When we talk about #Bitcoin, we talk about a peer-to-peer system that allows people to send and receive money without any intermediary like the Bank or stock Exchanges.

But Financial services are more than sending and receiving, ain't that right?

That's where Defi comes in.
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HOW TO DO YOUR OWN RESEARCH (DYOR)

[Tips to take note of before putting your money into a #Crypto currency]

A Thread 🧵

⚠️Read through to the end👇👇.

Let's fooking go🚀🚀 So you saw a coin on twitter, the hype around it is crazy.

Everyone is busy shilling it as the future of finance or whatever..

You are ready to bet away all your money into this coin hoping 100x your capital..

Trust me if you follow this route, you're going to hate trading,

15+ #Crypto Phrases/Slangs and What They Stand for.

[Never get confused about these words again!!]

A Thread🧵👇

KINDLY RETWEET!!

1. #FOMO : Fear Of Missing Out; This is when a huge price increases occurs in a short period and investors rush to get in on the trend. 2. Bear: When the market goes on a downward trend for a long period, the market is said to be a #bearmarket .

3. Bull: When the market goes on an upward trend for a long period, the market is said to be on a bull run.

4. Altcoins (or #alts ): These are referred to as Cryptos

𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗪𝗮𝗹𝗹𝗲𝘁𝘀 - A Thread 🧵

A #Crypto Wallet from the name "Wallet" implies is a wallet where your Crypto assets are stored and traded.

But they are of different types, aren't they🤔?

READ MORE 👇👇

KINDLY RETWEET!!! A. COLD WALLETS
B. HOT WALLETS

𝗧𝘆𝗽𝗲𝘀 𝗮𝗻𝗱 𝗖𝗹𝗮𝘀𝘀𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀 - A Thread🧵

We have 8,000+ cryptos but are they the same?

Today I will be putting you through the main 𝘁𝘆𝗽𝗲𝘀 of #Cryptos and how they are 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗲𝗱;

Let's go!👇👇👇

KINDLY RETWEET!!! 𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀
- Broadly speaking, there are 2 types of cryptocurrencies namely Coins and Tokens.

Coins: These belong to cryptocurrency networks that were built from the ground

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀? - A Thread🧵

[#Cryptocurrency explained to you like a 7-year old]

👇Read Carefully -Cryptocurrencies are virtual or digital currencies with no physical form of paper money or commodity with which it is backed.