> For the complete documentation index, see [llms.txt](https://docs.kinetic.market/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kinetic.market/glossary-of-terms.md).

# Glossary of Terms

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<summary>Decentralized Finance (DeFi)</summary>

DeFi refers to a decentralized financial ecosystem that operates on blockchain technology and smart contracts, offering permissionless access to a wide range of financial services and instruments, such as lending, borrowing, trading, and yield farming.

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<summary><strong>Kinetic Protocol</strong></summary>

A decentralized lending and borrowing platform built on the Flare Network, offering overcollateralized algorithmic lending.

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<summary>Flare network</summary>

Flare network is a blockchain platform known for its integration of the Ethereum Virtual Machine (EVM) and its trustless two-way bridge to other blockchains. It enables the creation of decentralized applications (dApps) and smart contracts, making it a versatile platform for DeFi innovation.

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<summary>Ethereum Virtual Machine (EVM)</summary>

The EVM is a runtime environment that executes smart contracts on the Ethereum blockchain. Flare Network's integration of the EVM allows developers to create and deploy Ethereum-compatible smart contracts on the Flare platform.

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<summary>Smart Contracts</summary>

Smart contracts are self-executing contracts with the terms and conditions of the agreement directly written into code. They automatically execute actions when predefined conditions are met, eliminating the need for intermediaries.

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<summary>Interoperability</summary>

Interoperability refers to the ability of different blockchain networks or protocols to interact and share data or assets seamlessly. Flare Network's trustless bridges enable interoperability with other blockchains.

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<summary>Borrow and Lend Protocol</summary>

A borrow and lend protocol is a DeFi platform that enables users to lend their digital assets, earn interest on their holdings, and borrow assets against collateral. It plays a vital role in DeFi by facilitating financial activities and yield generation.

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<summary>Governance Model</summary>

A governance model defines how decisions are made and protocols are managed within a blockchain ecosystem. It often includes mechanisms for token holders to participate in decision-making processes.

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<summary>Tokenomics</summary>

Tokenomics refers to the economic model and dynamics of a cryptocurrency or token. It encompasses aspects such as token distribution, utility, incentives, and the overall economic structure of a blockchain ecosystem.

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<summary>Yield Farming</summary>

Yield farming is a DeFi practice in which users provide liquidity to decentralized exchanges or lending protocols in exchange for rewards or interest. It involves optimizing strategies to maximize returns on crypto assets.

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<summary>Collateralization</summary>

Collateralization is the process of providing assets as collateral to secure a loan or borrow against those assets. In DeFi, collateralization ensures that the borrower has assets of value backing their borrowed funds.

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<summary>Liquidation</summary>

Liquidation is the process of selling collateral assets to repay a loan in the event that the borrower's position becomes undercollateralized or reaches a specified liquidation threshold.

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<summary>DAO (Decentralized Autonomous Organization)</summary>

&#x20;A DAO is an organization governed by code and smart contracts, rather than a centralized authority. DAOs enable decentralized decision-making and management of a blockchain project or protocol.

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<summary>FTSO (Flare Time Series Oracle)</summary>

FTSO is a decentralized oracle service provided by the Flare Network, offering reliable and tamper-resistant price feeds for assets within the network.

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<summary>FAssets</summary>

Tokens representing non-smart contract assets from various blockchains on the Flare Network.

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<summary>EVM Bridge</summary>

&#x20;An EVM bridge is a mechanism that connects different blockchain networks to the Ethereum Virtual Machine (EVM), allowing for the seamless execution of Ethereum-compatible smart contracts on those networks.

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<summary><strong>JOULE</strong></summary>

The native liquid token of the Kinetic protocol, native to Flare network and listed on the Probit centralized exchange.

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<summary>k<strong>Tokens</strong></summary>

Tokens representing a user's share of a liquidity market and the interest on their deposit.

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