Glossary of Terms
Decentralized Finance (DeFi)
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.
Kinetic Protocol
A decentralized lending and borrowing platform built on the Flare Network, offering overcollateralized algorithmic lending.
Flare network
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.
Ethereum Virtual Machine (EVM)
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.
Smart Contracts
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.
Interoperability
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.
Borrow and Lend Protocol
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.
Governance Model
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.
Tokenomics
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.
Yield Farming
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.
Collateralization
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.
Liquidation
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.
DAO (Decentralized Autonomous Organization)
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.
FTSO (Flare Time Series Oracle)
FTSO is a decentralized oracle service provided by the Flare Network, offering reliable and tamper-resistant price feeds for assets within the network.
EVM Bridge
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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